6 Review the opportunities for entrepreneurship and small business.
Exploring Entrepreneurship in Canada
Canada has a rich history of entrepreneurship, with business leaders who have built successful ventures across various industries. Here are a few notable examples:
Tim Horton – Co-founder of the iconic coffee and donut chain that has become a staple of Canadian culture.
Jim Pattison – Started with a GM dealership in 1961 and expanded into forestry, agriculture, grocery (Save-On-Foods), media, Guinness World Records, and Ripley’s. He recently funded a children’s hospital in Saskatoon, his birthplace.
Rachel Mielke – Founder of Hillberg & Berk, known for its signature sparkle ball jewelry, headquartered in Regina.
Jim Treliving – A former RCMP officer turned entrepreneur, best known for his role on Dragons’ Den and his ownership of Boston Pizza.
Morgan and Jackson Wyatt & Adil Qawi – Founders of Greenlid, a social enterprise focused on sustainability (ties to LO2 Ethics).
Mark Marsolais-Nahwegahbow – Founder of Birch Bark Coffee, a private corporation with a social mission (ties to LO4 Private Corporation).
What You’ll Learn in This Unit
In this learning outcome, we’ll explore the world of entrepreneurship and small business by:
Defining key concepts and understanding the role of small businesses in Canada’s economy.
Examining the advantages and challenges of small business ownership.
Analyzing factors that contribute to the success or failure of small businesses.
Exploring the process of starting a business, from idea to execution.
Discussing current challenges faced by Canadian entrepreneurs today.
If you continue into Year Two of the Business Diploma Program at SaskPolytech, you may have the opportunity to take an entire course dedicated to entrepreneurship. For now, this unit will introduce you to foundational concepts and help you begin developing your own Business Plan.
6.1 Define entrepreneurship and small business and their role in the Canadian economy.
Mastering Entrepreneurship: The Fourth Factor of Production
A Quick Tip Before We Begin
First, a word of advice—take a moment now to learn to spell entrepreneurship. It’s a tricky one, but mastering it early will serve you well! 😊
Entrepreneurial Ability in the Economy
In microeconomics, you learn that entrepreneurial ability is one of the four scarce factors of production, alongside land, labor, and capital. Entrepreneurship is the willingness and ability to generate new ideas and take on the risks necessary to combine the other three factors in innovative and profitable ways.
As you may recall from Learning Outcome 1, the four factors of production are:
Land – Natural resources that support production.
Labour – Physical and mental work performed by employees.
Capital – Tangible (equipment, facilities) and financial resources used for production.
Entrepreneurial Ability – The leadership, management, and innovation required to bring the other three factors together and drive a business forward.
It is this fourth factor—entrepreneurship—that we now turn our focus to.
Entrepreneur vs. Small Business Owner
Is there a difference between an entrepreneur and a small business owner? Absolutely.
Every small business owner starts as an entrepreneur. However, if they remain focused on running a single business without seeking growth, expansion, or innovation, they remain a small business owner—but not necessarily an entrepreneur.
Entrepreneurs, on the other hand, are always thinking ahead. They thrive on innovation, seek new opportunities, and embrace risk to create something bigger than themselves.
Both roles are vital to the economy, but their impact differs. Entrepreneurs shape industries, while small business owners provide stability and local economic strength.
Entrepreneur.com offers additional insights:
🔗 Small Business Owner vs. Entrepreneur
The Importance of Small Business in Canada
Small businesses play a crucial role in Canada’s economy. Industry Canada classifies businesses based on employee count:
Micro-business: Fewer than 5 employees
Small business: 5-100 employees
Medium business: 100-500 employees
For simplicity, we’ll refer to all of these as Small-Medium Enterprises (SMEs). Canadian banks generally consider businesses requiring financing under $500,000 to be small businesses.
Why Do Small Businesses Matter?
Job Creation – SMEs employ over 70% of Canada’s workforce, making them the largest private-sector employers.
Innovation – Many small businesses develop creative solutions to everyday problems.
Community Impact – SMEs often sponsor local events, charities, and initiatives.
Economic Stability – They help keep money circulating locally, preventing economic volatility.
🔗 Canadian Small Business Statistics
The COVID-19 pandemic highlighted the vulnerability of small businesses, contributing to one of the most severe economic downturns since the Great Depression. When small businesses struggle, local economies suffer.
Key Industries for Canadian Small Businesses
According to Wagepoint, SMEs thrive in industries that don’t require excessive startup capital:
Professional services (lawyers, financial advisors, aesthetics, consulting)
Hospitality (accommodations, food services)
Technology (scientific and technical services)
Retail & Wholesale Trade
Construction & Manufacturing
Agriculture
Healthcare & Social Assistance
Industries with high barriers to entry—such as mining, banking, and energy—are typically dominated by large corporations.
Do You Have the Entrepreneurial Mindset?
Many people dream of breaking free from the traditional 9-to-5 job, being their own boss, and making a fortune. But entrepreneurship isn’t just about having a great idea—it requires a unique mix of traits and skills.
Common Traits of Successful Entrepreneurs
✔ Desire for independence
✔ Strong need for achievement
✔ Willingness to take risks
✔ High energy and motivation
From Entrepreneur.com:
✔ Passion
✔ Strong sense of self
✔ Resilience & adaptability
✔ Confidence
🔗 Key Traits of Successful Entrepreneurs
🎥 Video: What Makes an Entrepreneur? (Startup Hustle)
🔗 Watch before class
Additional Insights from the Video
Entrepreneurs aren’t afraid to take risks.
They embrace failure as a learning experience.
They are skilled at evaluating risk vs. reward.
They are driven, goal-oriented, and open to feedback.
Canada’s Business Culture is Changing
Historically, Canada has had a risk-averse business culture—staying in one job for life, retiring with a pension. But today, more young Canadians than ever are pursuing entrepreneurship.
Even small business owners can recast themselves as entrepreneurs by innovating, scaling, and embracing change.
Education and Entrepreneurship
Many people believe formal education isn’t necessary for entrepreneurship, citing examples like Mark Zuckerberg dropping out of college to build Facebook. But the reality is:
📊 95% of entrepreneurs have at least a bachelor’s degree.
Education—both in business fundamentals and industry-specific knowledge—significantly increases the chances of success.
🔗 Self-Assessment: Do You Have Entrepreneurial Potential?
Now, Let’s Get to Work
Business Plan Assignment
Today, we’ll introduce the Business Plan Assignment—a key step in applying what you’ve learned.
Your business plan will be developed in teams, emphasizing collaboration and networking—both essential skills in the business world.
Team Formation & Expectations
Virtual teamwork is highly valued by industry partners.
Yes, teamwork can be frustrating, but now is the time to build your skills.
Your reputation in school and business follows you—be mindful of how you work with others.
You’re free to form teams based on past BusCase groups, new collaborations, or independent choices.
Networking starts now! Building connections is key to success in business.
Final Thoughts
Entrepreneurship is more than just a career path—it’s a mindset. Whether you become a small business owner or a high-growth entrepreneur, the key is to stay adaptable, embrace learning, and take calculated risks.
So, are you ready to take your first step toward becoming an entrepreneur?
6.2 Discuss the advantages and disadvantages of small business ownership.
The Realities of Entrepreneurship: Advantages & Disadvantages
We’ve explored what it takes to be an entrepreneur, and in doing so, we’ve touched on many of the advantages and challenges that come with the journey. Here are some advantages and disadvantages of entrepreneurship:
Advantages of Entrepreneurship
Independence – The ability to be your own boss is one of the most compelling reasons people choose entrepreneurship.
Lower startup and operational costs – Small businesses generally require less capital to establish and maintain than larger enterprises.
Flexibility – Small businesses can quickly adapt to changing market demands.
Niche focus – Entrepreneurs can concentrate on serving a select group of customers, reducing competition with larger firms.
Reputation building – Small businesses have the opportunity to develop a strong reputation for quality and customer service.
Challenges of Entrepreneurship
High stress levels – Running a business involves significant pressure, from financial responsibilities to daily decision-making.
Limited financial rewards (at the start!) – Many entrepreneurs struggle with financial uncertainty, particularly in the early years.
Time demands – Entrepreneurship often requires long hours and personal sacrifices.
High failure rates – Nearly 90% of all new small businesses fail within the first five years
A Real-World Perspective: The Ups and Downs of Entrepreneurship
To better understand both the rewards and challenges, watch this video featuring Trevin Peterson, a 24-year-old entrepreneur who built a seven-figure Amazon FBA business (Fulfillment by Amazon).
📺 Video Link: Trevin Peterson – The True Life of an Entrepreneur
Trevin’s journey hasn’t been smooth—he faced multiple obstacles before achieving success. While he is enthusiastic about the benefits of entrepreneurship, pay close attention to the “cons” he discusses as well. His story highlights the real-life challenges entrepreneurs face and the resilience required to succeed.
6.3 Explain the process of starting a small business.
Understanding Entrepreneurship and Business Idea Generation
Every new business is, by its very nature, different from any other. Therefore, creating a rigid, step-by-step formula for entrepreneurial success contradicts the essence of entrepreneurship. However, certain fundamental activities are widely recognized as essential for success. Let’s explore these key concepts.
Generating New Business Ideas
Student Activity: Form groups and develop a list of ways to generate new business ideas. If time permits, discuss: What is the best new business idea YOU have seen?
Encourage independent thinking before introducing the following article: How to Come Up with a Business Idea. The article emphasizes that “good business ideas are all around you.”
How Do You Generate a New Business Idea?
Ideas are everywhere—observe your surroundings!
Identify something that would make your life easier.
Recognize gaps in your community.
Engage in conversations and gather insights.
Reflect on your skills and strengths.
Follow market trends (trendwatching.com).
Analyze current entrepreneurial success stories (e.g., Dragon’s Den, Shark Tank).
Leverage past jobs and hobbies (e.g., dog walking business from a love of animals).
Consider these questions: What could simplify your daily life? Is there an unmet demand in your community? What do people need but haven’t realized yet? Passion and hobbies can often be transformed into viable businesses.
Evaluating Business Viability: SWOT Analysis
Once you have an idea, assess its viability using a SWOT analysis:
Strengths – What advantages does your business have?
Weaknesses – What areas need improvement?
Opportunities – What market needs can your business fulfill?
Threats – What risks exist, and how can you mitigate them?
Refer to Learning Outcome 5 for an in-depth discussion on SWOT analysis.
The Importance of a Business Plan
A business plan is critical for securing funding and attracting investors. Without a well-structured plan, many small businesses fail before they even launch.
The video How to Write an Effective Business Plan from Young Entrepreneurs Forum provides valuable insights.
Key Business Plan Elements:
Executive summary
Company background
Product or service overview
Unique selling proposition & competitive advantages
Market analysis
Operations plan
Leadership & management structure
Professional support network
Risk and threat assessment
Financial forecasts
Appendices
This course requires a simplified business plan, detailed in Learning Outcome 10.
Legal Considerations for Starting a Business
Your choice of business ownership (discussed in Learning Outcome 4) will determine the legal steps required:
What paperwork must be filed?
Is a business license needed?
How do you legally register a business name?
Watch: How to Set Up a Business in Canada (3:15) for guidance.
Financing Your Business: Debt vs. Equity
Businesses require funding, typically through debt or equity financing:
Debt Financing: Borrowing from banks, credit unions, family, friends, or issuing bonds.
Equity Financing: Selling part of the business for capital, personal investment, venture capital, or securing angel investors (Dragon’s Den model).
Crowdfunding is another funding method, where small contributions from many individuals fund a business (e.g., GoFundMe, Kickstarter).
Pros:
Quick access to capital
Built-in market testing
Engages a supportive community
Cons:
High competition
Costly and time-consuming campaigns
Risk of exposing unprotected ideas
Debt and equity financing will be explored further in Learning Outcome 9.
Acquiring an Existing Business
Starting a business from scratch isn’t the only option. Taking over an existing business has advantages and disadvantages:
Pros:
Established customer base
Operational setup already in place
Cons:
Potentially inherited business problems
Family-owned businesses may involve succession planning challenges
Franchising: A Hybrid Business Model
Franchising allows entrepreneurs to start a “new” business while leveraging an established brand.
Advantages:
Instant brand recognition and customer base
Established operational support and training
Economies of scale in marketing and purchasing
Disadvantages:
High initial costs ($1M+ for a Tim Hortons franchise)
Franchise fees ($30,000 for a Tim Hortons)
Ongoing royalty and advertising fees
Limited operational flexibility
For current franchise opportunities, visit Franchise Direct.
Conclusion
Entrepreneurship is dynamic and multifaceted. By understanding idea generation, business planning, legal considerations, financing, and operational strategies, you’ll be better equipped to navigate the journey of starting and growing a successful business.
6.4 Review the future for small business.
Small Business Trends and Challenges
Small businesses are particularly vulnerable to market changes. The Opportunities (O’s) and Threats (T’s) identified in a SWOT analysis can make or break a business. Entrepreneurs must stay alert to evolving trends.
Key Demographic Trends Impacting Small Businesses:
Aging Population: Large numbers of retirees create demand in travel, financial planning, and healthcare.
Millennials (Born 1981–1996): Tech-savvy and eco-conscious, they drive digital and sustainable business trends.
Post-Millennials (Born 1997+): Highly connected and global-minded, they prioritize digital interactions.
Cultural Diversity: With 80% of Canada’s population growth coming from immigration, businesses catering to diverse communities will thrive.
Technological & Economic Trends:
E-commerce Growth: Online shopping is the future, further accelerated by the COVID-19 pandemic.
Automation: Industrial robots, drones, 3D printing, and remote work are reshaping business operations.
Data Economy: Connectivity and digital integration are becoming essential for business success.
For further insights, explore The Canadian Small Business Stats Everyone Should Know.
6.5 LO6 – Business Plan