Chapter 9: New Venture Innovation

Importance of Entrepreneurship

Entrepreneurship is important for economic growth.  New companies create employment, contribute to a nation’s GDP, and bring new and innovative products and services to consumers.

“A society becomes greater if the employment base is large and diversified. It brings about changes in society and promotes facilities like higher expenditure on education, better sanitation, fewer slums, a higher level of homeownership.”^[1]

“Entrepreneurship increases income levels, therefore improving standards of living. Entrepreneurs identify challenges in the lives of customers and provide appropriate business solutions. Additionally, they hire new employees who receive remuneration and this income gets circulated in the economy. All of the spending and salaries generate incremental wealth, therefore improving standards of living.”^[2]

“Entrepreneurs again play a key role in increasing the standard of living in a community. They do this not just by creating jobs, but also by developing and adopting innovations that lead to improvements in the quality of life of their employees, customers, and other stakeholders in the community. New and improved products, services or technology from entrepreneurs enable new markets to be developed and new wealth to be created. Additionally, increased employment and higher earnings contribute to better national income in the form of higher tax revenue and higher government spending.”^[3]

Entrepreneurial Traits

An entrepreneur is someone who starts, owns and operates a business. It is difficult to generalize about the kind of people attracted to the idea of starting their own business because entrepreneurs are increasingly diverse. An interesting portrait of Canadian entrepreneurs emerged from a 2019 BDC survey of 1,025 Canadian business owners. Among the findings:^[4]

• Twenty-eight percent were women, up from 11% 40 years ago.
• Newcomers to Canada were twice as likely to start a business as their Canadian-born counterparts.
• The number of Canadians under 35 who started a business increased by 80% between 2014 and 2018.

Key Traits

While entrepreneurs do require many skills and abilities, they may not have all the skills they need to run a business successfully.  In these cases, an entrepreneur might hire a consultant, a contract employee, or a full-time employee to support the business tasks for which the entrepreneur is lacking skills or may not have the time to focus on. For example, as an entrepreneur, if accounting is your weakness you might hire an accountant, payroll service, or bookkeeper. If sales or marketing are not skills you have developed you might hire a salesperson or contract a marketing company to help you build marketing campaigns. While hiring consultants, services, or employees does cost money, you can rest assured it is being done accurately, and the investment should pay off.

Some of the key traits found in entrepreneurs include the following.

1. Passion. “Work ethic and passion go hand in hand. It takes work ethic to keep the business strong, and it takes passion to feel motivated enough to maintain a good worth ethic. That feeling of success is priceless, and it’s how entrepreneurs feel when they see great outcomes from the effort they put into their work.”^[5]
2. Risk Tolerance. “Taking risks helps businesses find new ways to differentiate themselves from the competition, which is especially helpful in saturated markets. In the event the risk doesn’t have the intended result, the entrepreneur can still apply the valuable lessons learned to future business decisions. Microsoft’s Bill Gates is credited with the quote, ‘To win big, you sometimes have to take big risks.’ Gates certainly took risks throughout the history of Microsoft, but perhaps his most notable risk was leaving Harvard during his sophomore year in 1975 to found the company. His vision was ‘a computer on every desk and in every home,’ which was something no one could have conceived of at the time. The risk he took to make that vision a reality paid off.”^[6]
3. Persistence. “While many successful entrepreneurs are comfortable with the possibility of failing, it doesn’t mean they give up easily. Rather, they see failure as an opportunity to learn and grow. Throughout the entrepreneurial process, many hypotheses turn out to be wrong, and some ventures fail altogether. Part of what makes an entrepreneur successful is their willingness to learn from mistakes, continue to ask questions, and persist until they reach their goal.”^[7]
4. Innovative. “Innovation is a characteristic some, but not all, entrepreneurs possess. Fortunately, it’s a type of strategic mindset that can be cultivated. Some of the most successful startups have taken existing products or services and drastically improved them to meet the changing needs of the market.”^[8] “Companies that thrive are often built from the wild creativity of their creators. With aggressive competition these days, entrepreneurs are forced to come up with original ideas that differentiate their companies from others. Creative entrepreneurs consider the possibility that the traditional solution isn’t good enough.”^[9]

Motivational Factors

There are some common motivational factors identified in many entrepreneurs. For instance, entrepreneurs are often motivated by much more than money and most start their business to become their own boss. In BDC’s survey, when asked why they became an entrepreneur, the most popular answer—cited by 70%—was independence, autonomy, and flexibility. About one in two mentioned passion or self-fulfillment and one third cited financial reasons.^[10] Refer to Figure 9.1 below to view survey results for motivational factors that influence entrepreneurial success.

“The 2019 BDC survey of business owners sheds additional light on what makes Canadian entrepreneurs tick. Three in four said they had to deal with financial insecurity, significant stress, and a lack of benefits. Yet, 90% were professionally satisfied.”^[11]

Types of Entrepreneurs

There are many types of entrepreneurs and depending on which website you read, you may see a list of five to fifteen types of entrepreneurs. The type of entrepreneur you are depends on your goals and personal characteristics (e.g., skills, knowledge, creativity, interests, preferences, situation in life, drive, determination, etc.).

The Indeed Editorial Team (2023) provides the following list of nine different types of entrepreneurship.^[12]

1. Small business entrepreneurship. People interested in this category are probably interested in making a profit that supports their family and a modest lifestyle.  They often run the business and work in it.  They hire local employees and family members. Local grocery stores, hairdressers, small restaurants, small boutiques, consultants, plumbers, and accountants are a part of this category.
2. Large company entrepreneurship. People in this category are often in a team of executives who know how to sustain innovation. Small business entrepreneurship can turn into large company entrepreneurship when the company grows quickly or when a large company acquires a small business. Microsoft, Google, and Disney are examples of this category.
3. Scalable startup entrepreneurship. People in this category look for things that are missing in the market and create solutions for them. Many of these types of businesses start in Silicon Valley and are technology-focused. They seek rapid expansion and big profit returns. Examples include Facebook, Instagram, and Uber.
4. Social entrepreneurship. People in this category want to solve social problems with their products and services. Their main goal is to make the world a better place and so they are not concerned with making big profits.
5. Innovative entrepreneurship. People in this category aim to change the way people live for the better. Innovators tend to be very motivated and passionate people. They look for ways to make their products and services stand out from other things on the market. People like Steve Jobs and Bill Gates are examples of innovative entrepreneurs.
6. Hustler entrepreneurship. People who are willing to work hard and put in constant effort are considered hustler entrepreneurs.  Their aspirations are what motivates them and they are willing to do what it takes to achieve their goals. They have drive and determination and do not give up easily.
7. Imitator entrepreneurship. People in this category use other people’s business ideas but work to improve them. They seek to make certain products and services better and more profitable.  They have a lot of self-confidence and determination. They learn from other’s mistakes.
8. Researcher entrepreneurship. People in this category like to do as much research as possible before starting a business. They believe that with the right preparation and information, they have a higher chance of being successful. They tend to rely on facts, data, and logic rather than their intuition.
9. Buyer entrepreneurship. People in this category use their wealth to fuel their business ventures usually through purchasing well-established businesses that they think will be successful. Their goal is to grow the business they acquire and expand their profits.

Social Entrepreneur

Some people start businesses in order to help society, people, and communities. A social entrepreneur does not start a company with their main goal being to make a profit, instead, their goal is to make positive change in the world. Their goals often align with the United Nations Sustainable Development Goals (as shown in Figure 9.2 below) and their efforts may have a local, national, or global impact. “Whether it’s reducing poverty, ending homelessness, or fighting climate change—social entrepreneurs are, first and foremost, committed to a cause. While starting a business to support a worthy cause is admirable, the venture still requires focus and serious processes to be sustainable and reach the desired social or environmental impact.”^[13]

“These entrepreneurs might be for-profit or non-profit, and they operate under the umbrella of social enterprise or entrepreneurship. It recognizes societal issues, donates profits or uses grants or raises, and mobilizes resources for the greater good. Poverty reduction, child rights restoration, access to health care and financial services, women empowerment, and community development are the most common issues these entrepreneurs address. They often persuade societies, large organizations, and governments to encourage social transformation by addressing unmet needs and social issues.”^[14]

Play the YouTube video below, “What is Social Innovation?  How do you actually DO it (and change the world)?”, to learn more about the steps involved in creating a social innovation. Amber Melanie Smith provides a specific example of a social innovation related to food insecurity and applies the design thinking methodology to step through the stages of identifying the problem, empathizing, defining the problem, ideating, prototyping, and testing the solution.^[16] Transcript for “What is Social Innovation? How do you actually DO it (and change the world)?” Video [PDF–New Tab]. Closed captioning is available on YouTube.

Necessity Entrepreneur

A necessity entrepreneur is someone who starts a business based on a need for income, out of necessity, because they cannot find employment, have lost their job, need to supplement their income, or require flexibility to attend to other demands in their lives. Some necessity entrepreneurs find business ideas to pursue after retirement or after being downsized. “A typical necessity entrepreneur is over 50 years of age, has been unemployed for over a year, and sees the possibility of finding full-time employment dwindling.”^[17]

“A business started out of necessity is usually initiated through some sort of bad luck, i.e. a job loss, redundancy, or even ill health. These entrepreneurs are hesitant because, in all honesty, they would rather be working for a large corporation with the guarantee of a monthly income, however for whatever reason, that is not an option. As with all entrepreneurs, be they averse to starting a business of not, they have a particular knowledge or know a specific product that they think is of value to others. To be able to share this knowledge/product with the world is all they know so, if the only way to be able to use these specialities is to create their own business that’s what they do.”^[18] An example of this might include, a parent with an autistic child who finds it difficult to work a full-time job and still provide the care and attention required to support their child.  This parent decides to stay home to take care of their child because they feel they are the best person to do so. The parent then starts to receive many questions from friends and family about autism, and they realize that there may be a need for this type of service. They decide to obtain formal credentials and they complete an online program in the field of autism and behavioural science. Once formally qualified, they start a business providing advice to families about autism as a fee-based service. This works well for the necessity entrepreneur because they can now earn an income by providing a needed service and still take care of their child.

Opportunity Entrepreneur

An opportunity entrepreneur is someone who sees an opportunity to make money, gets involved at the right time, and aims for business growth and economic development. For example, “Matt Horan started Rollasole after his girlfriend always complained of walking home in High Heels. With his first entrepreneurial venture he created the first vended shoe, launching Rollasole in his local nightclub. From his hometown, word spread and he built up his business selling his shoes online, in stores and in vending machines. Soon the bright lights of Vegas came calling and after a chance meeting with Ashley Ross an unlikely partnership was formed to bring Rollasole into the States.”^[19] Sometimes one great idea acts as a catalyst for other great ideas and today we can find vending machines dispensing sneakers, dress shoes, “emergency” shoes, and “flip flops” for beach wear or when you need a pair of shoes to enter a restaurant.  So many great ideas!

Another example of an opportunity entrepreneur is Tim Horton, who was a Canadian hockey player, and In 1964 he founded the first Tim Horton doughnut shop in Hamilton, Ontario, which later grew into a chain of franchises across Canada and eventually the United States. Burger King purchased Tim Hortons in 2014 and the two brands became subsidiaries of Restaurant Brands International Inc. (RBI).  As of August 2022, RBI is one of the world’s largest quick-service restaurant companies with over $35 billion in annual system-wide sales and over 29,000 restaurants in more than 100 countries.^[20]

Sometimes a potential entrepreneur identifies an opportunity to make a new product or start a new business which may be a combination of a profit-making business idea that also supports a socially sustainable goal or a business created out of necessity that not only makes a profit but also supports a socially sustainable goal.

A good example of a social and profit-making business is 31 Bits.  During a trip to Uganda, marketing and international development college student, Kallie Dovel, realized that many of the uneducated single mothers she had met during her trip had exceptional skills and resourcefulness in making jewelry out of old posters. Kallie identified an opportunity to sell this jewelry so she partnered with a few of her college peers and formed the company 31 Bits. The company employs artisans, women from Uganda, with these exceptional skills and ensures they are paid a fair wage.  The company also promotes ethical sourcing by allowing for family time, providing dignified careers, and preserving culture. The mission statement for the company is “We use fashion and design to drive positive change in the world by providing artisans with dignified opportunities and inspiring customers to live meaningful lives.”^[21] Nearly a decade later, 31 Bits can be found in hundreds of stores and has been endorsed by celebrities like Sophia Bush, Candace Cameron Bure, and Jessica Alba, and has been written about by Forbes, Harper’s Bazaar, and Elle. Most importantly, hundreds of artisans’ lives have been changed forever.^[22]

Steps to Creating a New Business

The Business Development Bank of Canada (BDC) provides an ultimate guide to starting a business in Canada.  This step-by-step guide provides resources and answers to many questions an entrepreneur may need when considering starting a new business.

1. Identify a Business Opportunity. You may find an opportunity for a new product or business by identifying a need for something that is currently missing, or identifying a problem that is occurring and contemplating a way to fix it. Before you start spending money on an idea, it’s essential to ensure your business idea has the potential to be successful. Conduct research into what other companies are doing that may be similar to your business concept. Ask yourself these questions. How will your company stand out from the crowd? Who are your target customers? Will they want your service or product? How much money will you need and where will you get it?
2. Choose a Business Structure. In Canada, there are three common types of business structures, sole proprietorship, partnership, or corporation and each has its own pros and cons.^[23]
3. Choose a Business Name. “Selecting a name for your business is not a task to be taken lightly. In fact, it may prove more difficult than you expect. Your name must be accurate, catchy and, most importantly, available. Your name will often create your company’s first impression on customers, so choose it with care. Ask yourself the following questions. Does the name reflect my business and what I sell? Can it be easily remembered? Is it unique and distinctive?”^[24]
4. Create a Business Plan.  Often a business plan is used to help secure funding, validate a business idea, grow an existing business, buy a business, sell a business, or advise clients. It legitimizes a business idea, shows the results of research, provides product and customer information, and includes operational and strategic goals. “A business plan is a document that explains how your business operates. It summarizes your business structure, objectives, milestones, and financial performance. It’s a guide that helps you, and anyone else, better understand how your business will succeed.”^[25] Additional information on business plans is below.
5. Obtain Business Financing.  There are many ways to finance a new venture, and depending on the size of your startup you might use personal funds or apply for a bank loan (debt financing). Other options include government grants and subsidies, asking family and friends, crowdfunding, developing partnerships, business incubators or accelerators, and inviting venture capitalists or angel investors who may be willing to invest in your business for partial ownership or participation in business decision-making (equity financing).
6. Choose a Commercial Space. Your choices here will vary. You may not need a physical location if you are selling online and working from your home, although if selling products you will need to consider suppliers and shipping.  If you operate a mobile hotdog cart you will want to setup in locations where your customers are. Some mobile food trucks/carts/stands obtain permission to set up outside specific retail stores.  Some food truck owners obtain contracts with various organizations and they move from company to company during lunch hours selling lunch products to employees. If you are going to sell products or services in a brick-and-mortar store, then you want to consider buying or leasing a space, the costs of each, and finding a location either near your target market (make more sales near potential customers) or near your supplier (reduce costs).  There may also be licenses required, for example, if you sell liquor or food products. You may also require insurance.
7. Hire Employees.  Whether or not you hire employees will depend on the size of your business.  For example, if you are opening a hot dog stand, then you may be the only employee you have.  If you are opening a small bakery you might start out hiring friends and family, although, that can be a sticky situation if you have disagreements. Although, some entrepreneurs open restaurants or retail businesses specifically to start a family-owned business and create jobs and income for their family members. As your business grows you may need to hire employees. Take time to do a thorough job search so you can find the right-fit employees, otherwise, you may end up with a lot of headaches and wasted time by hiring the wrong people. To save time, and depending on the number and type of employees you need, you might use a recruiting firm to vet potential candidates for you. While there is usually a cost for this service, it saves you time (and money) in not having to recruit and select employees yourself.
8. Grow Your Business. “Getting your business up and running is only the start of your business journey. Your first year will be one of your most challenging. It’s when many businesses fail. You will have to keep your eye not only on your day-to-day operations but also planning for your company’s future growth. The difference between the two is often described as working in the business versus working on the business. Visit the Business Development Canada (BDC) manage your growth hub for more tips on how best to move your business forward in the early months.”^[26]

Business Plan

A business plan may change as your business grows or pivots in a new direction, so you will find the business plan is not fixed but flexible and needs to be revised from time to time. Any new or existing business can and should make use of a business plan. “In its simplest form, a business plan is a guide that outlines goals for your business and how you plan to reach them. It contains an overview of your business strategy, milestones to track tasks and responsibilities, and the basic financial projections you need to forecast your sales, expenses, and cash flow.”^[27] “The primary purpose of a business plan is to help you understand the direction of your business and the steps it will take to get there. Having a solid business plan can help you grow up to 30% faster and according to our own 2021 Small Business research working on a business plan increases confidence regarding business health—even in the midst of a crisis.”^[28] There is no one right way to write a business plan, your approach depends on your industry, and who is reading your plan. Ensure you include all the important information any lender or investor will want to see before they go into business with you.

Below is a brief description of the sections of a traditional business plan.

1. Executive Summary. “This is an essential part of a successful business plan that often takes the most time to complete. It’s also one that you may consider completing last, even though it’s usually the first thing that the reader sees. An executive summary is the definitive recap of all of the information that you include in the business plan. Most commonly, this section doesn’t exceed two full pages. This is because the executive summary aims to present the essence of the business and its goals. It serves as an elevator pitch that may help you convince someone to invest in the business.”^[29]
2. Company Description. “A List of the goods and services the company will provide, the market it will serve, short- and long-term goals for growth and a brief history of the company’s formation and past performance.”^[30]
3. Market Analysis. “The market analysis section details the target market for the company’s product offerings. This section confirms that the company understands the market and that it has already analyzed the existing market to determine that there is adequate demand to support its proposed business model. Market analysis includes information about the target market’s demographics, geographical location, consumer behavior, and market needs. The company can present numbers and sources to give an overview of the target market size.”
4. Competitive Analysis. “A competitive analysis is a strategy that involves researching major competitors to gain insight into their products, sales, and marketing tactics. Implementing stronger business strategies, warding off competitors, and capturing market share are just a few benefits of conducting a competitive market analysis.^[31]
5. Management Plan. “The management plan provides an outline of the company’s legal structure, its management team, and internal and external human resource requirements. It should list the number of employees that will be needed and the remuneration to be paid to each of the employees. Any external professionals, such as lawyers, valuers, architects, and consultants, that the company will need should also be included. If the company intends to use the business plan to source funding from investors, it should list the members of the executive team, as well as the members of the advisory board.”^[32]
6. Operating Plan. “The operating plan provides an overview of the company’s physical requirements, such as office space, machinery, labor, supplies, and inventory. For a business that requires custom warehouses and specialized equipment, the operating plan will be more detailed, as compared to, say, a home-based consulting business. If the business plan is for a manufacturing company, it will include information on raw material requirements and the supply chain.”^[33]
7. Sales and Marketing Plan. “This section of the plan defines what you plan to do to promote and sell the company’s products or services. Consider including your pricing plans here and mention the organization’s unique selling proposal. You may also list important communication channels for the business. For example, if you’re about to launch a retail company, you may explain which social media channels you’d use to promote the products through paid and organic advertisements. Other elements to include here are your email, influencer and content marketing strategies.”^[34]
8. Financial Plan and Projections. “This section should include a company’s financial planning and projections. Every company needs to have a budget in place. This section should include costs related to staffing, development, manufacturing, marketing, and any other expenses related to the business. Financial statements, balance sheets, and other financial information may be included for established businesses. New businesses will include targets and estimates for the first few years plus a description of potential investors.”^[35]
9. Appendix. “The final section of a business plan usually includes any additional information or appendices that support the claims and ideas you present in previous sections. You may consider adding attachments that exhibit the viability of your business plan, for example, financial statements or external market reports that you used to analyze competition or target audience.”^[36]

Play the YouTube video below, “What is a Business Plan? – BPlans Explains Everything”, to learn about what a business plan is and why and how you should use one.^[37] Transcript for “What is a Business Plan?” Video [PDF–New Tab]. Closed captioning is available on YouTube.

Business Model Canvas

The business model canvas is a strategic planning tool used by managers to illustrate and develop their business model. The business model canvas template clearly identifies the key elements that make up a business. Additionally, it simplifies a business plan into a condensed form. In this way, the business model canvas template acts as an executive summary for the business plan.^[38] The typical use for this tool is to outline the fundamental building blocks of a business, but it can be used effectively for individual products as well. It can be used to identify potential opportunities for growth and expansion, or areas that need improvement. The components may vary but typically the business model canvas includes the following nine building blocks and each is represented by a rectangle in the model diagram.

1. Customer segments
2. Value proposition
3. Channels
4. Customer relationships
5. Key activities
6. Revenue streams
7. Key resources
8. Key partnerships
9. Cost structure

Play the YouTube video below, “Introduction to the Business Model Canvas”, to learn about what a business model canvas is and why and how you should use one.  ^[39] Transcript for “Introduction to the Business Model Canvas” Video [PDF–New Tab]. Closed captioning is available on YouTube.

Support and Education for Entrepreneurs

The University of Toronto Open Learning Series

The University of Toronto, The Bridge, Scarborough Campus, offers a free entrepreneurship course within its open learning series. “We welcome students, staff, faculty, alumni, and local and international community of emerging entrepreneurs to enhance your learning of entrepreneurship through the award-winning Entrepreneurship Open Learning Series. Start your entrepreneurship journey by completing training modules that teach you core management principles to help perfect your business plans and pitches.”^[40]

After you complete the entrepreneurship course within the open learning series you will be able to do the following:^[41]

• Explain value proposition and utility to help focus on specific motivations for a specific product.
• Define the target market and describe value specific for a target market to help demonstrate the value built into a product.
• Evaluate the utility and value of a product within an industry using market research.
• Design a usage scenario for a product.
• Discuss software design principles to help the development of a product.

Open Courses

There are many free online courses in entrepreneurship and many other subjects.  These courses are offered by various education providers, often in addition to their fee-based courses, and include Massachusetts Institute of Technology (MIT), INSEAD, University of Toronto, McMaster University, University of Michigan, Stanford Online, Open Yale Courses, Harvard University, LinkedIn Learning, FutureLearn, Coursera, Edx, Udacity, edX, Khan Academy, YouTube, and more. Some courses are referred to as MOOCs, Open Courses, and Free Trials or Demos.

OER (Free) Books, Video Tutorials, Case Studies, and More

“The Recommendation on Open Educational Resources (OER), adopted by UNESCO’s General Conference at its 40th session on 25 November 2019, is the first international normative instrument to embrace the field of openly licensed educational materials and technologies in education. OER are defined in this Recommendation as learning, teaching and research materials in any format and medium that reside in the public domain or are under copyright that have been released under an open license, that permit no-cost access, re-use, re-purpose, adaptation and redistribution by others.”^[43]

There are many free ebooks, case studies, video tutorials, and lessons on many subjects, including entrepreneurship, available from eCampus Ontario, BCCampus, OpenStax, OER Commons, Saylor Academy, Khan Academy, MERLOT, Directory of Open Access Journals (DOAJ), Open Textbook Library, OASIS, and more.

Incubators and Accelerators

“A business incubator is a specialized program designed as a space for new businesses to learn and grow. The programs provide services for entrepreneurs and startups while offering reduced rates for supplies and workspace. Typically, young businesses must apply for a position and commit to a certain amount of time in the program. While in a business incubator, companies can more thoroughly plan their business, learn from other individuals and save money.”^[44]

“A business accelerator is a program designed to help established startups scale quickly, and often provide funding in exchange for equity in the business. Accelerators often require startups to already have a minimum viable product or a fixed team before they can apply. Once admitted, startups go through an intense period of growth and development, often over the course of three to six months.”^[45]

Below are a few examples of business incubators and accelerators, and remember to check with your own college or university to determine if there is an incubator or accelerator on campus.

Seneca College

Seneca College has HELIX. “HELIX’s Innovation and Entrepreneurship Incubator has a process that provides future entrepreneurs with resources and support to help develop their innovation mindset and grow their new ventures from ideation to launch and scaling. The process involves two stages or ‘strands’ – the INNOVATION Strand and the ACCELERATION Strand. Those who want to enter the ACCELERATION Strand of HELIX must complete all six workshops of the INNOVATION Strand and deliver a pitch of their proposed venture idea.”^[46]

MIT

The MIT delta v accelerator is the capstone entrepreneurial experience for students at MIT.^[47] MIT REAP is a dynamic global initiative with two programs – Global and Focus – that engages with communities around the world to strengthen innovation-driven entrepreneurial ecosystems and transform economies.^[48]

MaRS

MaRS Discovery District innovation hub works with business startups to scale-ups. MaRS offers a range of services and a Start-up toolkit that help tech founders grow their companies and create meaningful innovation: solving real problems for real people. MaRS works with hundreds of companies across the country, turning breakthrough ideas into products and services with global impact.^[49]

District 3

“At District 3 we work with founders and their startup teams to help them validate their business and get to scaling it, faster and better. As a founder, you’ll be receiving tons of information and opinions about what you need to do run your startup successfully and you’ll have to learn to select what to follow. This takes time and experience, and while there is no real way to teach it, there are tools and organizations out there that can make it easier for you—like this library!

Futurepreneur

“Futurpreneur has been fueling the entrepreneurial passions of Canada’s young enterprise for over two decades. We are the only national, non-profit organization that provides financing, mentoring and support tools to aspiring business owners aged 18-39. Our internationally recognized mentoring program hand matches young entrepreneurs with a business expert from a network of more than 2,600 volunteer mentors.”^[50]

BDC

The Business Development Bank of Canada (BDC) offers many tools and resources, as well as advice, to entrepreneurs and business owners. “We support small and medium-sized businesses in all industries and at every stage of growth with money and advice. We are the Business Development Bank of Canada.”^[51]

Government Support

The Government of Canada and many chambers of commerce have mentoring programs designed to facilitate contact between business leaders and budding entrepreneurs. Local economic development centers and some business leaders’ associations offer similar programs. The Government of Canada, Starting a Business website, also provides information for registering a business, getting business support and financing, choosing a business name,  applying for business permits and licenses, and tax help. The Canadian Government’s Business Grants and Financing website provides information on Government financing programs, loans and capital investments, wage subsidies, grants, tax credits, and managing your business finances. Some grant and loan programs in Canada include Business Start Program (BSP) in Manitoba, Youth Entrepreneurship Partnership Program in Ontario,  Jeunes Promoteurs in Quebec, and Canada Small Business Financing Program.

Governments in countries other than Canada may also offer incentives for new business start-ups.  Some government programs specifically offer support to young entrepreneurs, entrepreneurs starting businesses within specific industries in which the government may be trying to grow the economy, and entrepreneurs who are part of specific minority groups. For example, The U.S. Small Business Administration (SBA) is a federal agency that provides assistance to current and prospective small business owners.^[52]. There are also several federal entrepreneur programs for immigrants, such as the Microenterprise Development Program and the Minority Business Development Agency Business Centers^[53].

Crowd Funding

“Crowdfunding is a kind of crowdsourcing and alternative financing by which people, via the Internet, can contribute money to a person, cause, event, or business venture. This method has been used to fund startup businesses, help communities suffering from a natural disaster, and aid families and individuals in financial need due to a medical emergency or a death. Crowdfunding is now a common method for connecting entrepreneurs and investors—offering an alternative to bank loans or venture capitalists—and it is now a popular way of supporting cultural institutions, such as art organizations and charities. Billions of dollars are raised annually via this fundraising method. A high-profile example of crowdfunding is Oculus VR, now part of Meta (the parent company of Facebook). It produces virtual reality headsets and other hardware and software. The firm’s founder, Palmer Luckey, used Kickstarter to raise $2.4 million (U.S.) in 2012, vastly exceeding its crowdfunding goal of $250,000. Facebook purchased the company for $2 billion in cash and stock in 2014.”^[54]

References

(Note: This list of sources used is NOT in APA citation style instead the auto-footnote and media citation features of Pressbooks were utilized to cite references throughout the chapter and generate a list at the end of the chapter.)