Sample Business Studies Paper on Entrepreneurship and Starting a small Business

Business Research Assignment

Topic:   Entrepreneurship and Starting a small Business

From Chapter # __7_____    Page # ___254____

Title of Article 1:  Six steps for a successful succession of your business

Publication Date of Article: Feb 11, 2017

Summary of Article:

There are six tips for a successful succession of your business. First is starting early. Small business owners may face a challenge when they want to sell or transfer their business, and according to Abby Kassar, Wealth Management’s vice president of high net worth planning services, the reason for unsuccessful planning is lack of investing enough time when exiting. She further advises these businesses to plan for about three to six years before exiting. The second tip according to Lisa Kay, president and lead consultant of Toronto-based peak performance Human resources corp. is assessing carefully who you are transferring the business to, to ensure they are the right people and up to the task. The third tip is from Chris Munn, a tax partner in a Toronto based accounting firm which is having an exit strategy by finding the right purchaser such that you get the maximum value of your businesses. Kassar adds that there may be need to spend more years building on the value of the business to make it more attractive. The forth tip is understanding tax implication which is important for benefits like multiple capital gains. The fifth tip is communicating changes to your company’s employees and management to ensure they are comfortable with the transition and finally, the new owner should provide support for succession to the original owner.

Title of Article 2: REPORT ON ENTREPRENEURSHIP AND FRANCHISING Small choice of lenders is available for small businesses

Publication Date of Article: September 05, 1988

Summary of Article:

Small business has limited choices for bank loans. Most banks find it hard to offer small loans because they earn small interest as compared to what can be fetched from a loan several times their size. Also, the cost of handling both loans is the same. Banks also claim that the risks are higher. To compensate for all that banks set higher interest rates, high values for collateral and tough conditions which the small business find unfair. The chattered banks do not loan capital to start-up businesses. They claim that it is a way of limiting their risks. Small businesses encounter difficulties obtaining a loan from Canadian banking big six and sometimes succeed through religious approaches. A few secure loans through a credit union. There are therefore few choices of lenders for small businesses in the country with some parts with only one bank that can offer the services. Since the deregulation of the Canadian Financial services industry in 1987 where banks were allowed to entry into the investment funding, most banks are competing for corporate accounts, and very few are competing for small businesses.

Title of Article 3:  SMALL BUSINESS what’s hot in small business

Publication Date of Article: Mar 15, 1996

Summary of Article:

Some small businesses areas are extremely competitive, and in order to succeed and make it, you have to dig deeper and understand the tactics of your field. For example in a technology oriented business, one cannot know what will happen to the internet with time and therefore should combine ‘techie-type-people and management people’ to ensure both bases are covered. Another area is getting away with middlemen, and the trick understands once customers and business as well. This is to ensure you fit well with the trend, in other words ‘keeping a close watch on the weather’. Eldercare is another hot business because of the increasing aging population with disposable income. Other booming areas are industry specific software and a cosmopolitan environment where a second language is a huge asset.

Title of Article 4: Matching business skills with aboriginal needs

Publication Date of Article: Oct 6, 2011

Summary of Article:

There is need to match business skills with aboriginal needs in Canada. The youth population is fast growing in Canada, and the people who run administrations for both in reserve and off-reserve agencies are getting older. There is great need to get aboriginal youth involved in order to run these organizations in future. Shane Cameroon, a thirty-year-old was able to balance basics of business, accounting, and finances with aboriginal identity after upgrading his high school math and English skills. He plans to further his studies and get an aboriginal business diploma program. According to Rob Lackie who worked with aboriginal youth both of and on reserve, students from on reserve face challenges when they try to advance because they have to go off reserve and start a whole new life which can be difficult. It explains why most of them do not go beyond grade 8. Aboriginal youths have much talent, and they have started considering businesses hence three is great need from that community.

Business Topic Analysis:

I chose the topic “Entrepreneurship and starting a small business” because entrepreneurship is a risky venture and everyone needs skills and understanding to succeed. Not everyone gets in entrepreneurship and succeeds. Most succeed in their first attempt, others after failing a couple of times and others never make it. The reasons behind the outcomes are based on the level of preparation, aim, skills of entrepreneurship and most importantly understanding the risks associated and the readiness to take chances with a strong desire for benefits. Entrepreneurship and starting a small business is more than having the capital. Small businesses are very competitive because most people can afford the means and that makes the area critical and challenging.

I selected my first article “Six steps for a successful succession of your business” because I saw the need for entrepreneurs to ensure they have a successful succession of their business for protection of their legacy. It takes a lot of sacrifices to establish a business, and the created value must be felt during the succession period and after, through continued success of the business. The important aspects of this article are making sure a business is transferred at the right time to the right person and getting its maximum value. This article explains aspects of entrepreneurship which include a successful succession of an already established venture. The article relate to Canadian business because according to most studies, few family-owned businesses make it to the third generation and most entrepreneurs do not have a formal succession plan which guarantee the success of their business.

My second article “REPORT ON ENTREPRENEURSHIP AND FRANCHISING Small choice of lenders is available for small businesses” offers insight on one of the challenges faced by people that want to start small businesses. This article is informative educates entrepreneurs to find a better means for obtaining their capital. This can be through joining credit union groups or even saving early enough to avoid harsh condition and high interest rates from banks. The article gives an overview of the Canadian business climate. It reports that the Canadian banking big six rarely offer loans to small businesses and nationwide. Only a few banks offer this service as most of the banks compete for corporate accounts that bring high returns. The article calls for an action in Canada to offer platforms that enable investment and growth of small businesses.

My third article “SMALL BUSINESS :what’s hot in small business” speaks to entrepreneurs that want to venture into the booming areas in small businesses and  asks them not to be too fast putting their money in something they think is productive from an outward appearance but to take time to get a deeper understanding of the requirements. The article is important because it gives examples of these hot areas and why they are productive, encouraging people to take the opportunities. The article is all about good choices and considerations that should be made before venturing in any of these hot areas in small businesses. Canada is among the countries with an intense entrepreneurial activity, and Canadians have an embracing attitude towards entrepreneurship with many people turning to it for a career. The surprising fact is that Canada has poor productivity and low innovation levels. The article can serve as advice to people to strategically venture into these booming areas.

My fourth article portrays the need to match business skills with aboriginal needs among the increasingly growing youth population in Canada who have so much talent and are considering venturing into business. Considering the many entrepreneurial opportunities in Canada and the friendly regulation and positive attitude towards entrepreneurship, it is important to incorporate this talented, young and energetic population in the environment for better results. The article is important because it reveals unexplored potential in Canada which calls for urgent action to better the lives of young people and generations to come. The article reports the disturbing fact about youths who fail to go beyond grade 8 and the need to have skilled people to replace the old people running the administrations. This article might be a revelation of one of the underlying causes of poor innovation performance in Canada. Youths are the individuals that are most involved in venturing in business opportunities because they are in the process of establishing themselves for better livelihood and good future. Canadian youths, however, lack the required skills to do so.

Conclusion:

According to the articles, small business is a growing area with new opportunities every day, and there are many people venturing in. However, the area is faced with many challenges which include difficulties in accessing capital, lack of required skills and lack of adequate tools for starting a business. I think to make the climate of entrepreneurship favorable, the government should get involved in creating favorable platforms by attending to the needs of citizens. This is by ensuring they standardize interest rates on loans such that they are fair for everyone. They should also put up institutions that offer learning opportunities to youths that need to advance their education including those from reserves. This will ensure that the youth population is skilled which translates to increased productivity of a country. From this assignment, I learn that joined efforts are important to succeed in small business. Canada is full of business opportunities, but performance is still low which can be explained by failure to access adequate skills and capital. The bottom line is creating an environment that attends to people’ needs to enable them fully explore their potential.

Works Cited

Acharya, Madhavi. “Matching business skills with aboriginal needs” Toronto Star; Toronto, Ont. 6 Oct. 2011: L.10.

Margaret, Philp. “REPORT ON ENTREPRENEURSHIP AND FRANCHISING Small choice of lenders is available for small businesses” The Globe and Mail; Toronto, Ont. 5 Sept.1988:C.4.

Ryan, Starr. “Six steps for a successful succession of your business” The Globe and Mail; Toronto, Ont. 11 Feb. 2017: Z.1.

“SMALL BUSINESS what’s hot in small business” The Globe and Mail; Toronto, Ont. 15 Mar. 1996: C.6.