Assignment 2: Unit 2 (8%)
Start by opening Microsoft Word on your device and creating a new document. Once you have created your assignment document, go to the File Menu and select, â€œSave asâ€; choose the storage location where you want to save it (your hard drive/memory stick/folder etc.). Choose â€œsave typeâ€ as *.docx. Type the file name as â€œMNGT1711-your last name-your student id-Assignment 2â€ and save. Double click on the saved file and use it to develop your Assignment 2.
Assignment 2 will require you to demonstrate an understanding of the concepts presented in Unit 2. You will submit this assignment as an MS Word report. The title page must include your name, ID, course name, assignment name/number and university name. The report should use Calibri (body) font size 12 and be double-lined spacing. If you use references, create them on a separate page and cite the sources in APA format.
Question 1: 30 marks
Go to the Business Development Bank of Canada (BDC) webpage,Â
Entrepreneurial Potential Self-Assessment
, and answer the questions as openly and honestly as possible. (Alternatively, find the self-assessment questionnaire by going to the Business Development Bank of Canadaâ€™sÂ
Â and following this path: Home > Articles and tools > Entrepreneurâ€™s toolkit > Business assessments > Entrepreneurial potential self-assessment.)
The questionnaire includes 50 statements about yourself; remember, your honest opinion counts.
Â· Based on the survey results, write a summary of the aspects of your personality that will make you a good entrepreneur and those that will hold you back. The summary should be between 275 and 300 words and make reference to the survey questions you are writing about.
Question 2: 25 marks
Choose an industry, a province of Canada, and your investment level for a franchise business, then choose a franchise that would be a good investment opportunity for you.
Put together a brief report (400 to 500 words) that c
Unit 2: The Business Formation and Entrepreneurship
Commentary throughout Unit 2 adapted from:
Gitman, L. J., McDaniel, C., Shah, A., Reece M., et al. (2019).Â
Introduction to Business
. Victoria, BC: BCcampus.
(Attribution: Copyright Rice University, OpenStax, underÂ
CC BY 4.0Â license.)
In this second unit, we explore the topics of entrepreneurship, business formation and business planning. You have heard the names of Steve Jobs, Bill Gates, and Richard and Maurice McDonald and their big companies like Apple Computers, Microsoft, and McDonaldâ€™s restaurants. These people started very small from their apartments, basements, or garages. They are called entrepreneurs. This is not to say that anyone who starts small is an entrepreneur. Entrepreneurship adds an innovation flavour to the business. Entrepreneurs identify opportunities and come up with novel ideas to fill a niche in the marketplace that has been largely unexplored before.
One of the decisions that entrepreneurs make is to choose the form of business that fits with the vision they have for realizing their ideas. Choosing this form affects every aspect of the business, starting with the cost of establishing and operating the business, daily decision making, taxes and the potential for profits. Businesses in Canada are generally owned and operated under one of three business forms: a sole proprietorship, a partnership or a corporation. Each form has its pros and cons. The proprietorship is represented by a single owner, who has rights to all profits and control of the business. In the partnership, two or more partners co-own the assets and share in the profits. Ownership of a corporation is represented through the sale of stock in the corporation. Other forms such as cooperatives, franchises, and joint ventures also exist.
One document that is important for establishing and financing any business is the business plan. The business plan basically documents the roadmap for an entrepreneur and is required by most banks to finance a business.
Businesses can also organize as limited liability companies, cooperatives, joint ventures, and franchises. In addition, many companies grow through involvement in mergers (in which two companies combine to form one company) and acquisitions (in which one company or investor group buys another).
Unit 2 deals with the concepts of entrepreneurship, business planning and business formation.
The Business Formation and
Who is an Entrepreneur?
ï® Someone who takes the risk of
establishing and operating a new
business to fill an opportunity niche in the
Types of Entrepreneurs
ï® Classic entrepreneurs
ï± Micropreneurs: keep it small
ï± Growth-oriented: make it big
ï® Multipreneurs: start multiple businesses
ï® Intrapreneurs: apply creativity within an organization
Are You Ready to Take the Plunge?
4(Attribution: Copyright Rice University, OpenStax, under CC-BY 4.0 license)
Checklist for Starting a Business
(Attribution: Copyright Rice University, OpenStax, under CC-BY 4.0 license)
Do an internet search to find the company names and
the nature of business of these Canadian entrepreneurs:
ï® Mike Lazaridis
ï® John Molson
ï® Stephanie Ciccarelli
ï® Wallace McCain
ï® Heather Reisman
ï® James Pattison
ï® Guy LalibertÃ©
ï® Cassandra Nordell
ï® Tobias Lutke
Small Businesses in Canada (2017)
ï® As of December 2017, there were 1.18 million businesses
ïƒ˜ 1.15 million (97.9 per cent) were small businesses,
ïƒ˜ 21,926 (1.9 per cent) were medium-sized businesses
ïƒ˜ 2,939 (0.2 per cent) were large businesses.
ï® More than half of the small businesses are concentrated in
Ontario and Quebec (417,742 and 236,705 respectively).
ï® British Columbia had 179,517 small businesses.
Innovation, Science and Economic Development Canada. (2019, Jan.). Key small business statistics.
Small & Medium Business (SME) Impact
on Canadian Economy (2014)
ï® Private Sector
ï± Small business contribution to GDP generated by the private
sector was 41.5 per cent
ï± Medium businesses contribution was 11.0 percent and large
businesses was 47.5 per cent.
ï® Goods and Service Sector
ï± SMEsâ€™ average contribution to GDP was 43.6 per cent in the
goods-producing sector, compared with 74.5 per cent in the
Innovation, Science and Economic Development Canada. (2019, Jan.). Key small
business statistics. https://www.ic.gc.ca/eic/site/061.nsf/eng/h_03090.html#point1-1
Survival Rates of Canadian Businesses by Sector
within Ten Years of Birth
Innovation, Science and Economic Development Canada. (2019, Jan.). Key sm