Canadian Economy

1. Why are small businesses important to the Canadian economy?

Small businesses have a strong presence in the Canadian economy as well as most countries in Europe. The contribution of a small business can be measured in terms of it’s effect on financial aspects in the economy. For example small businesses create 8 out of every 10 jobs, this presence holds great strengths in our Canadian economy.

2. What are the characteristics of a small business?

There are three characteristics of a small business: Job Creation, Innovation, and importance to big businesses. Small businesses construct job creation, as a matter of fact a widely circulated study showed that small businesses created 8 of every 10 new jobs. Small business especially in certain industries is an important source of new and well paid jobs in this country. Small firms are also the first to hire in times of economic recovery. Innovation is such a large part of our small businesses in Canada. History has shown that some of the most greatest inventions have come from small businesses. For example: Personal computers, the jet engine, the ball point pen, photocopy machine, etc. The wealth of a big business providing a product is extremely dependent on

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· Payments must be made to the franchiser even if the profits are low. Because of all the layoffs in the late 80’s and earlier 90’s these people were almost forced to open a business which they had little or no experience in and had to fight like to dogs to stay open and provide for themselves and their family’s. · Financial assistance is provided by the franchisee in the form of loans. I started working with my father at a family pizza restaurant when I was 9 years old. You first must be sure that the transition from your current employer to your new found business is a successful one. What are the causes of small business failure?

There are many probable reasons why a small business would fail. · Employee loyalty is high· Family business often have a valuable reputation or goodwill. Now I only started stocking shelves and answering phone’s, but in just a few years I was like an attraction at the business people would come in and be amazed of how I would be able to make pizza hardly being able to look over the counter, and also my customer service skills I was polite, courteous to everyone. · An appropriate price may be difficult to ascertain. · Financing might be easier because of past performance and existing assets can be evaluated. · The start-up owner is able to choose lenders, equipment, inventories, locations, supplies, and workers. · Franchisees are their own bosses and get to keep most of the profit they make. What are the advantages and disadvantages of the following ways of becoming involved in a small business: taking over a family business, buying out an existing business, starting a business from scratch, and buying a franchise?

PROS CONS

Taking over family business · Provides otherwise unobtainable financial management cause of personal sacrifice.

Approximate Word count = 1159
Approximate Pages = 5 (250 words per page double spaced)

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