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INSTRUCTOR MANUAL FOR Canadian Entrepreneurship And Small Business Management 12ce By Wesley Balderson, Peter Mombourquette, Dr. Penny Farley Chapter 1-14

CHAPTER LEARNING OBJECTIVES

PART ONE: The Decision to Start a Small Business CHAPTER 1: The Role of Entrepreneurship & Small Business in Canada

LO1. Discuss the level of interest and activity in the small business sector. LO2. Evaluate common methods of defining small business and explain why a definition is important. LO3. Summarize the current extent of entrepreneurship and small business in Canada. LO4. Describe the benefits a healthy small business sector can offer to society. LO5. Explain the probable future environment for entrepreneurship and the small business community.

Balderson, Canadian Entrepreneurship & Small Business Management, 12th Edition Prepared by Peter Mombourquette and Penny Farley

ANSWERS TO SMALL BUSINESS IN ACTION & SMALL BUSINESS BEGINNINGS QUESTIONS SMALL BUSINESS IN ACTION 1-1: CROWDFUNDING HELPS BROTHERS BUILD A BETTER WATER BOTTLE 1. Do you think the Pressa Bottle will continue to be a successful product? Why or why not? Answer: Student Choice

2. What do you think are some of the advantages and disadvantages of crowdfunding? Answer: Student Choice – however students should mention from the entrepreneur’s perspective that it allows them to test market product ideas, provides additional sources of capital and can assist in pre-selling products. From a disadvantage side, entrepreneurs have additional work to communicate with many people, it is fairly unregulated and some entrepreneurs and/or investors could act unethically. 3. Visit the Kickstarter website and report back to the class on some of the best ideas that are being pitched. What are the terms associated with the ideas? Would you personally donate or invest money using crowdfunding? Answer: Answer will vary on student work. SMALL BUSINESS IN ACTION 1-2: YOUNG CANADIAN SOCIAL ENTREPRENEURS 1. Kasandy has found a way to support artisans across the world and make a profit in her own neighbourhood. Can you think of a business idea to do the same? Answer: Student Choice: answers will vary 2. Name one entrepreneur who started small and made it big. How did they do it? How are they giving back to the community? Trace the small steps and turning points that led them to greater success. Answer: Student Choice: answers will vary

Balderson, Canadian Entrepreneurship & Small Business Management, 12th Edition Prepared by Peter Mombourquette and Penny Farley

3. Find three social enterprises on either the Social Enterprise Council of Canada or the Canadian Social Enterprise Foundation. With 1–2 classmates, create your own social enterprise business and compare it with another group from the class. Answer: Student Choice: answers will vary – this may also be used as the answer to one of the experiential questions at the end of the chapter

Additional questions – not in text 4. How would you define social entrepreneurship? Do you think there is a difference between social entrepreneurs and regular entrepreneurs? Why, or why not? Answer: Student Choice 5. Can an entrepreneur consider themselves social entrepreneurs if they retain all the profits from their business? Answer: Student Choice – however students may mention that businesses can provide society benefits and still make profits. Donating profits is not essential to being a social entrepreneur. 6. Either in groups or individually, list some ideas for a social enterprise. If time permits, discuss the marketing mix for the social enterprises, including the product or service you will sell, how you will promote the business, the price you will charge, and where the business will be located. Answer: Answer will vary on student work. SMALL BUSINESS IN ACTION 1-3: Kailey Gilchrist – Sauce Boss 1. What are some of the advantages and disadvantages of being a young entrepreneur? Answer: Students may mention pros such as having an early head start in using business models, learning from small mistakes early on leading to avoidance of mistakes when the business grows, and being willing to take risks because they don’t feel afraid of just jumping in. Speaking specifically to the business, students may discuss the high start-up costs, the need to find strong advisors, and the difficulty in raising capital. 2. Do you think NONA Vegan Foods will be a long-term success? Why or why not? Answer: Student Choice 3. One of the main challenges Gilchrist faced was getting good start-up funding. What are possible sources of start-up funding for youth in Canada? Where else would you look for funding? Balderson, Canadian Entrepreneurship & Small Business Management, 12th Edition Prepared by Peter Mombourquette and Penny Farley

Answer: Student Choice – however students should mention from the entrepreneurs perspective that it allows them to test market product ideas, provides additional sources of capital and can assist in pre-selling products. From a disadvantage side entrepreneurs have additional work to communicate with many people, it is fairly unregulated and some entrepreneurs and/or investors could act unethically. - BDC and Futurpreneur; DAIR and checking the Youth Entrepreneurship guide. 4. Following advice is an important skill, but so is following your intuition. When you do you think you should listen to other instead of following your own instinct? Answer: Student Choice – Students should mention the importance of good advisors and the possible places to find advice for young entrepreneurs. SMALL BUSINESS BEGINNINGS 1-2: PEACE BY CHOCOLATE 1. The Hadhad family has been quite successful in public relations (PR). The business has been featured in numerous articles and on television. What are some of the advantages of this type of marketing? Do you think the business will be able to maintain this positive PR long term? Why or why not? Answer: Students may discuss that PR is free and it comes with credibility with readers/consumers. Students may offer different opinions on the company’s ability to maintain as much PR coverage in the long run. Some students may offer that the media may move on to more current stories while other students may note that the Hadhad’s appear interested in using PR for their business and if they maintain a good strategy and promote new topics/concepts that it may continue. 2. What do you think would be some of the advantages and disadvantages associated with starting a business in rural Nova Scotia, specifically Antigonish, which has a population of approximately 4300 people. Answer: Advantages: Caring community, community support, people who moved away may be willing to move back for work, lower wages, lower rent, assist in generating PR, less taxes. Disadvantages: Inability to attract workers, far away from urban centres may increase shipping costs, taxes and costs could be higher 3. Do you think Peace by Chocolate should be considered a social enterprise? Why or why not? Answer: Answer will vary on student work. SMALL BUSINESS IN ACTION 1-4: INNOVATION IN NEW BUSINESS - A SOCIAL MEDIA SUCCESS STORY Balderson, Canadian Entrepreneurship & Small Business Management, 12th Edition Prepared by Peter Mombourquette and Penny Farley

1. What are some of the advantages and disadvantages of using a product like HootSuite for your company? Answer: Student Choice – however students may discuss that HootSuite allows business owners to post to multiple social media sites from one location saving time and money. 2. Given that many consumers are becoming increasingly concerned about privacy rights, do you think HootSuite or companies that use its social media tracking tools could be subject to public backlash against monitoring social media use and activities? Answer: Student Choice 3. If time permits, visit HootSuite’s website, and try out the free tools. Report back to the class if the tools worked as you expected. Prepare a summary of the features HootSuite can offer businesses. Answer: Student Choice

ANSWERS TO DISCUSSION QUESTIONS 1. Why do you think entrepreneurial activity has increased? Do you think these trends will continue? Why or why not? Answer: Student Choice - however the following aspects should be covered - significant contribution to society as a result of a healthy small business sector. Examples such as employment, innovation, productivity, flexibility, competitiveness and social contributions should be included. 2. What excites or interests you about being an entrepreneur? What are your major concerns? Answer: Student Choice. Major concerns should include funding 3. Under what conditions would the various definitions of small business be more appropriate? (i.e., the level of profit may be used by Revenue Canada to determine the small business tax rate.) Answer: The appropriate definition would depend on the use of the information. For example: To obtain counselling assistance form the CASE Program of the Business Development Bank of Canada, the number of employees would be used (75). To obtain funding under the Small Business Loans Act gross sales would be used $5 million). To receive the reduced "Small Business" tax rate from Revenue Canada net operating profit would be used ($500,000). Balderson, Canadian Entrepreneurship & Small Business Management, 12th Edition Prepared by Peter Mombourquette and Penny Farley

4. What is meant by the statement “Small business is the backbone of the Canadian economic system"? Give evidence to support this statement. Answer: Several factors illustrate the impact of small business to our economy. A. As indicated in the text, there is considerable evidence that those economies that provide the most encouragement for entrepreneurship and small business are those which have experienced the highest growth rates since the 1950's. B. Small firms have accounted for most of the new jobs created. C. Further evidence shows that 97% to 99% (depending on the definition) of businesses operated are small businesses and approximately 50% of gross domestic product is provided by small business. D. A large portion of the inventions we enjoy today were provided by Canadian entrepreneurs. E. Small businesses make approximately 32% of all business profits. F. Approximately 29% of Canadian gross sales and 17.5% of exports are made by small business. G. 20% of all business assets are owned by small businesses. H. Small business is also more flexible and can respond more quickly to changes in the economy. I. A much higher percentage of small businesses are Canadian owned than compared to large corporations. J. Finally, small businesses seem to be more socially conscious than large companies and tend to operate with the community in mind. All of these factors contribute to the theory that small business is the backbone of our economy. 5. The computer consulting business is becoming more and more fragmented. In data processing, for example, there are hardware versus software consultants, batch versus time sharing service bureaus, and mainframe versus microcomputer specialists. What effect does this type of industry fragmentation have on the small business community? Answer: Fragmentation of markets to better service consumer needs and wants is beneficial to the future of small business. A small specialized time sharing service bureau, for example, has some economic and service advantages over a large firm with large overhead that handles all types of

Balderson, Canadian Entrepreneurship & Small Business Management, Tenth Edition Prepared by Peter Mombourquette

computer services. On this premise the outlook for small business in the future is very promising as many industries are following a similar pattern as the data processing industry.

ANSWER TO EXPERIENTIAL EXERCISES 1. Form groups of two to three, and start a small business or mini-venture that will run for a period of four to six hours. The only rules are: a. The business has to be legal b. No lotteries c. Maximum investment of $1 d. Businesses must cease operations at day’s end. After completing the project, write a reflection stating what you did, whether you made a profit, and what you learned. you may also present this information to the class. Answer: Dependent on student choice. 2. Ask three small business owners about their projections for the future of small business. What problems and opportunities do they foresee? Answer: Will vary based on the entrepreneurs selected 3. Using Internet resources, find out how different Canadian organizations define social enterprise. After preparing a summary report on your findings, draft your own definition of the term. Answer: Student Choice 4. Write a short essay discussing your views on the future of small business given current trends in society and in your geographic area. Answer: Student Choice – however student's answers should be positive.

CONCEPT CHECKS (Not in text) Why has there been an increase in entrepreneurial activity throughout the world in recent years? Answer: Many countries are turning to small business and private initiative to assist in their economic growth. What evidences are there that there is an entrepreneurial "revolution" occurring? Balderson, Canadian Entrepreneurship & Small Business Management, Tenth Edition Prepared by Peter Mombourquette

Answer: The entrepreneurial revolution is evidenced by increases in: business establishments, employees in small businesses, government small business programs, college small business classes, and entrepreneurial activities of large companies. Why is it important to define small business? Answer: Although defining a small business is difficult, it is important to make for comparison, evaluation, and various lending and assistance programs. What are the criteria used to make this definition? Answer: Some of the common criteria in defining small are total revenue, number of employees, profitability and type of management structure. What Effects has the Covid Economic Downturn had on small businesses? Answer: There have been both negative and positive consequences: Negative: many small business closed during the pandemic; large businesses such as Amazon took over many online ordering products. Positive: An increase on online business means lower overhead for small businesses, in many cities, new storefronts opened up for increased exposure; new ways of doing business flourished; small entrepreneur startups showed a strong recovery after an initial downturn. What is the extent of small businesses in Canada? Answer: Small business accounts for roughly 98% of all businesses, 29% of gross sales, 26% of gross domestic product and 56% of the labour force, 32% of business profits, 17.5 % of all business assets, 25% of exports and 52% of net job creation. What two demographic groups have shown an increase in proprietorships in recent years in Canada? Answer: In recent years there has been an increase in small businesses established by seniors and women. What are the contributions small businesses can make to a society? Answer: Small business promotes Canadian ownership and economic growth, provides jobs, innovations, high productivity, flexibility, and social contributions to a society. What are the positive and negative factors which may influence the small business community in the future?

Balderson, Canadian Entrepreneurship & Small Business Management, Tenth Edition Prepared by Peter Mombourquette

LO1. To discuss the advantages and disadvantages of small business ownership as a starting point in making the small business decision. LO2. To review the personal and organizational attributes of a successful small business owner. LO3. To explain the reasons some businesses succeed and others fail. LO4. To discuss entrepreneurial development in large business. LO5. To identify the differences between an entrepreneur and a manager.

ANSWERS TO SMALL BUSINESS IN ACTION & SMALL BUSINESS BEGINNINGS QUESTIONS SMALL BUSINESS IN ACTION 2-1: MOMPRENEURS 1. Given the challenges associated with starting and running a business, do you think being a mompreneur allows for more work–life balance compared with traditional work or part-time employment? Answer: Student Choice – however students should mention a motivation for many mompreneurs was to start a business so they could be personally in charge of their own work schedule 2. What do you think are some of the advantages and disadvantages of being a mompreneur? Answer: Student Choice – however students should review the advantages and disadvantages discussed in the text. Advantages may include: Independence, Flexibility, Earning Potential, Challenge. Disadvantage: Business may fail, misconception that you are not a real entrepreneur, workload and so forth. 3. What do you think are some business ideas that would allow work and life balance? Answer: Student Choice 4. Previous to COVID-19, Fashionphile had started opening up physical retail locations. Do you think this makes sense for the company? Why or why not? Answer: Student Choice. Students may discuss that physical retail locations may increase sales, build the brand, allow for easier customer service and so forth. Students should also note that physical Balderson, Canadian Entrepreneurship & Small Business Management, 12th Edition Prepared by Peter Mombourquette

stores may come with higher costs, there is a trend away from in-person shopping, and the company lacks brick-and-mortar retail experience. 5. Sarah Davis says that a key to her success was focusing her attention on growing the business. Review the chapter including the demographics of entrepreneurs and personal evaluation sections and discuss why that would be the case. Answer: Student Choice. Students should discuss achievement orientation, innovativeness, strategic planning and perseverance. DIVERSITY IN LEADERSHIP 2-1: COVID-19 FUELS GROWTH FOR A BRICK-AND-MORTAR RETAIL APP 1. What are some of the reasons that Asaria’s businesses have succeeded? Answer: Industry experience, there was a demand for the products/service, lack of competition, innovation in marketing, and ability to raise money. 2. Are you surprised that Asaria’s clients have continued to invest in in-store shopping during COVID-19? Why or why not? Answer: Answer will vary on student work. Some students may note some hesitation about Tulip based on the trend away from traditional retail especially during COVID-19 and the lockdowns and concerns about returning to in-person shopping. Students may also discuss the general trend towards online shopping pre and post pandemic. Other students may note that some companies are more dependent on in-person sales and would be attracted to the innovativeness of the product, his track record and the number of retailers using the service. 3. Asaria has managed to raise millions for Well.ca prior to stepping down as CEO and ultimately selling the company. He has since raised in excess of $US79 million for Tulip. Would you have invested money in Well.ca and Tulip? Why or why not? Answer: Answer will vary on student work. 4. Asaria hopes to grow Tulip into a $100-billion company? Do you think he will be successful? Why or why not? Answer: Answer will vary on student work. 5. What do you think are some of the advantages and disadvantages of Asaria pledging 80 percent of his shares in Tulip to an employee-controlled trust?

Balderson, Canadian Entrepreneurship & Small Business Management, 12th Edition Prepared by Peter Mombourquette

Answer: Answer will vary on student work. Students should likely discuss the likely positive impact on employee morale, employee recruitment and retention. 6. Asaria is trying to distinguish Tulip using its human resource practices to attract and retain employees. What do you see as some of the advantages and potential disadvantages of his reduced weekly work hours and enabling employees to set their schedules? Do you think these HR practices will be sustainable in the long term? Why or why not? Answer: Answer will vary on student work. Students should discuss that more people will likely be attracted to Tulip based on a desire for flexibility in their lives, working shorter hours, and it should enable them to attract employees. Students may also mention that HR practices may result in extra work in scheduling, it might be more challenging to create a corporate culture, and people may lose touch with one another. SMALL BUSINESS BEGINNINGS 2-1: SOCIAL SELLING 1. What do you think are some of the advantages and disadvantages of social or direct selling? Answer: Advantages: People selling the product are motivated as their compensation is tied to sales; Associates are often owners or empowered entrepreneurs in the company; Sales occur in a fun, party like atmosphere; Lower costs using social selling. No retail stores are needed and salespeople are only paid if they make a sale. Disadvantages: Maybe difficult to find people to sell products; Motivation of salespeople can wane; Social sales may take away from online sales; Company lacks control of message from salespeople/owners. 2. Develop a list of business ideas you think would be successful using the direct sales model. Your idea should include a product(s) and some justification why social selling would work. Answer: Answer will vary on student work. 3. Use Internet resources to discover other social selling businesses. Identify some opportunities you think have significant potential and present them to class. Be sure to include the product(s), what support the company offers, and, if possible, the commission structure. Answer: Answer will vary on student work. SMALL BUSINESS IN ACTION 2-2: COVID-19 LEADS TO A PIVOT AND SALES GROWTH AT SMOOTH 42 1. Review the keys to entrepreneurial success above and the demographics of an entrepreneur in Chapter 2. Which demographics and keys to success do Elez and Dombowsky possess?

Balderson, Canadian Entrepreneurship & Small Business Management, 12th Edition Prepared by Peter Mombourquette

Answer: Student Choice – however most students will cite alertness to change, staying close to the consumer, effecting handling of laws, rules and regulations. In reality one could argue that the entrepreneurs represent all keys to success. In the demographic section, students will most likely cite achievement orientation, innovativeness, problem solving and perseverance. 2. Elez and Dombowsky have been labelled in the media as social entrepreneurs. Would you consider them to be social entrepreneurs? Why or why not? Answer: Answer will vary on student work. Some students who use a wide or broad definition of social entrepreneur would state that they are. They created a hand sanitizer to help during the pandemic, made substantial donations, and their ECO Vodka product is environmentally friendly. Alternatively, people with a narrow definition of social entrepreneurs may note that they are fundamentally a for-profit business, they sell alcohol, and have been more opportunistic than socially driven. 3 Little Hands has been a success for the company. What do you see as the product’s strengths? What do you see as potential threats for the product? The products main strengths are: Clear label, safe for children, effective, easy to spray nozzle, no taste, Amazon listing, media coverage Threats: Increasing competition, end of the pandemic 4. Eco Vodka is the company’s best-selling alcohol product. What do you see as the product’s main advantages? Are there any potential disadvantages/threats? Answer: Answer will vary on student work. Advantages should include: Price, Quality of the product, environmental friendly aspect, ability to create or infuse the vodka, high alcohol content. Disadvantages: High alcohol content, use of a loophole to sell, not finished and requires mixing.

ANSWERS TO DISCUSSION QUESTIONS 1. What are the advantages and disadvantages of small business ownership? Answer: There are many advantages and disadvantages to owning a small business. Some of the most common advantages are: independence, more personal contact with people, skill development, potential financial rewards, challenge, and enjoyment. The possible disadvantages include: risk, stress, need for many abilities, limited financial rewards, people conflicts, and time demands.

Balderson, Canadian Entrepreneurship & Small Business Management, 12th Edition Prepared by Peter Mombourquette

2. Which of the characteristics of successful small business owners do you think is the most important? Why? Answer: The students could develop answers for a number of characteristics. Three characteristics stand out as important for any successful small business. The first characteristic is to stay close to the consumer. Businesses that are constantly monitoring the market have a good idea of what the consumer wants and needs. A second very important characteristic is the ability to attract and hold competent employees. A manager cannot do everything in the firm so he/she needs good employees to effectively carry out duties and deal with the client on an everyday basis. A third important characteristic of successful small businesses is to have very thorough operating details. These successful businesses have goals, reports, and constant evaluation and adjustments to follow a detailed business plan. 3. Given the challenges experienced by businesses during the COVID-19 pandemic, what characteristics of a successful entrepreneur do you consider to be most important? Why? Answer: The students could develop answers for a number of characteristics. They may opt to focus on some of the demographic characteristics including achievement orientation, innovativeness, problem solving abilities, strategic planning, and perseverance. Students may also opt to delve into some of the characteristics associated with successful businesses including alertness to change holding employees, ability to obtain capital and effective handling of government rules. 4. How do managerial skills differ from entrepreneurial skills? When would an entrepreneur's skills be more useful than a manager's? Why? Answer: The text outlines the difference between an entrepreneur and a manager. Entrepreneurial skills tend to be more valuable in starting and expanding a business. Managerial skills, on the other hand, are more useful for maintaining and solidifying an existing business. 5. Select a successful small business, and discuss the reasons for its success, drawing on the success characteristics outlined in the text. Answer: The answers will vary. 6. What are the most common reasons for small business failure? Answer: Students should note external shocks and management problems. Students will no doubt discuss the impact of the pandemic.

ANSWERS TO EXPERIENTIAL EXERCISES Balderson, Canadian Entrepreneurship & Small Business Management, 12th Edition Prepared by Peter Mombourquette

1. Investigate a local business that has recently failed. Using Internet sources and other research methods, identify why the business ceased to exist. Answer: The answers will vary. 2. Interview a local small business owner about what he or she feels are the advantages and disadvantages of small business ownership. Answer: Dependent on student interview and reflection. 3. Interview an entrepreneur and attempt to identify his or her entrepreneurial characteristics and leadership style. Answer: Student Choice. 4. Select a successful small business, and discuss the reasons for its success, drawing on the success characteristics outlined in the text. Answer: Applicant question - dependent on the small business chosen.

CONCEPT CHECKS (Not in text) List the advantages and disadvantages of owning a small business? Answer: There are many advantages and disadvantages to owning a small business. Some of the most common advantages are: independence, more personal contact with people, skill development, potential financial rewards, challenge, and enjoyment. The possible disadvantages include: risk, stress, need for many abilities, limited financial rewards, people conflicts, and time demands. What are the characteristics of successful small business owners? Answer: There are certain personality characteristics required to be a successful ownermanager. This list includes: achievement oriented, risk taker, independence, innovative, strong verbal and numerical skills, problem solving ability, strategic planning, and the ability to persevere. What are the characteristics of a successful business? Answer: A healthy small business generally has the following characteristics: a good owner manager rapport, more labour intensive, personal attention to daily operations by the owner, flexibility, and a market where demand is local.

Balderson, Canadian Entrepreneurship & Small Business Management, 12th Edition Prepared by Peter Mombourquette

CHAPTER 3: Evaluation of a Business Opportunity

CHAPTER LEARNING OBJECTIVES LO1. List the four stages of the entrepreneurial process. LO2. Identify the various sources of ideas for new ventures. LO3. Summarize the non-quantitative aspects of evaluating business opportunities. LO4. Describe the methods by which an entrepreneur can enter a market with a product or service. LO5. Recognize the ways that an entrepreneur can develop a strategic competitive advantage. LO6. Examine the types of information available to assist in the quantitative analysis of selecting a small business and illustrate how that information can be used. LO7. Identify a systematic way to quantitatively assess an industry and evaluate the financial feasibility of a specific small business opportunity.

ANSWERS TO SMALL BUSINESS IN ACTION & SMALL BUSINESS BEGINNINGS QUESTIONS SMALL BUSINESS IN ACTION 3-1: CANADA DRIVES: CHANGING HOW CANADIANS SHOP FOR CARS 1. Would you use a site like Canada Drives? Why or why not. Balderson, Canadian Entrepreneurship & Small Business Management, 12th Edition Prepared by Peter Mombourquette

Answer: Student opinion – however students should support their opinion with facts from the case. 2. Many of Green’s customers are still considered under-banked. As such, some of them will pay very high interest rates on any car they purchase. Do you think it’s ethical to assist people in obtaining a car with interest rates that many would call excessive? Answer: Student Choice. Students should likely discuss that customers ate gaining access to a potentially valuable resource – as car especially in rural areas or smaller cities where there is a lack of transportation. Students should also recognize that if cosumers opt for a less expensive car that there interest payments may not be large as a dollar amount and the purchase will enable them to build credit. Students should also note that it is illegal to charge interest rates beyond a certain amount. 3. Canada Drives is expanding to selling cars direct to consumers. What do you think are some of the advantages and disadvantages of this strategy? Answer: Answer will vary on student work. Students may note that some advantages for Canada Drives is an increase in revenue, likely more profits, they are capitalzing on vistors to their website. Disadvantgages may include added cost, expanding into an area where they may lack some knowledge and a potential loss of current car partners/dealers. 4. Think about your past experiences. Can you identify any opportunities for a business? List your ideas and then select the best three to share with your peers. Answer: Student Choice SMALL BUSINESS IN ACTION 3-2: WHEN LOOKING FOR BUSINESS IDEAS – THE INTERNET IS OUR FRIEND 1. Do you think entrepreneurs can identify business opportunities by visiting media sites such as the ones mentioned above? Answer: Student Choice. Students should clearly answer in the affirmative and provide support. 2. Many businesses have become quite successful by taking an idea from someone else and making it their own. If you observe a great business opportunity on Dragons’ Den or see an idea for a product on Indiegogo.com, do you think it is ethical to cimply duplicate the idea under a nw business name? Why or why not? What if a student talks about an idea she has in class? Would it be ethical for you to start a business based on your peer’s idea? Answer: Student Choice Balderson, Canadian Entrepreneurship & Small Business Management, 12th Edition Prepared by Peter Mombourquette

3. Visit some of the trend and crowdfunding sites mentioned above individually or in small groups. Report back to the class on some ideas you found that have the most business potential. What ideas were you surprised by? Did you think any ideas were really bad? Answer: Student Opinion 4. What do you think are some of the advantages and disadvantages of using social media sites to discover trends? What social media sites would you recommend to trend watchers? Answer: Advantages may include that social media is now an important marketing tactic that consumers turn to when looking for brands they can trust, consumer reviews and customer service. Disadvantages may include that students may limit their searches based on sites they like. Students may also note that trust in social media has never been lower, and some social media sites such as Facebook have seen usage and engagement declines. Recommendations are students’ opinions but may include sites such as TikTok, Instaram and LinkedIn. DIVERSITY IN LEADERSHIP 3-1: PROPERLY: A FINTECH SOLUTION TO BUYING AND SELLING REAL ESTATE 1. What do you think are some of the advantages and disadvantages of Properly’s business model. What do you think are some of the advantages and disadvantages of the business concept? Answer: Answer will vary on student work. Students should note advantages include: Putting customers (both buyers and sellers first), Sales assurance, Properly Polish, Properly Staging, Strong results (70% quicker sale), Working with agents, Website, Social media, Successfully raised $100 million. Disadvantage: 1. Five percent commission has been shrinking, some may see the commission as high, 2. There is a lack of discussion about what happens when a customer has an agent, 3. Only located in Toronto. 2. Properly is charging a very traditional five percent commission. Discount real estate companies have emerged in larger cities charging clients much less in the one to three percent range. Do you think Properly can still be successful with this knowledge. Answer: Answer will vary on student work. Students may note that sales assurance and other servives may be enough to offset the higher commission. 3. Would you invest in Properly? Why or why not? Answer: Student Choice. 4. Ruparell says the key to starting a high-growth venture is creating a business with a significant customer pain point and a large potential market. In groups or individuals, see if you can identify Balderson, Canadian Entrepreneurship & Small Business Management, 12th Edition Prepared by Peter Mombourquette

ideas for businesses that fit these criteria. Answer: Student Choice. SMALL BUSINESS IN ACTION 3-3: FAN-CONTROLLED FOOTBALL: YOU’RE THE GM AND THE COACH 1. What do you think are some of the advantages and disadvantages of the business concept? Answer: Student answers will vary. Students should note that some advantangous include the trend towards fantasy sports, the interactivity of the fans/owners, the relationship with Twitch, television deals with NBCLX & DANZ, use of technolofgy inclyding VR and drones, and some success in raising money. On the disadvantage side, students may point out the over reliance on Twitch and smaller cable stations, that fans may not want this much involvement and the high costs of operations. 2. With any new venture, creating revenue streams wil be vital to the company’s long-term success. Think about social media, sports and other related industries. Develop a list of five to ten ways in which the league could earn additional revenue. Answer: Student Choice 3. Do you think the business will be successful? Why or why not? Would you invest in the company if given the opportunity? Answer: Student Choice

DIVERSITY IN LEADERSHIP 3-2: WONDER WOMEN, TEARA FRASER 1. Review the section of the chapter on Business Ideas. What category would you say Fraser’s idea comes from? Now look at Qualitative and Opportunity Assessment above. Based on this information, do you think starting Iskew Air will be a good long term decision for Fraser. Why? Answer: Answer will vary on student work. Students will most likely cite that Fraser’s business came from a hobby, personal experience, and observation. Students should recognize that they cannot answer all questions for Fraser but will likely note that starting the company aligned with her goals, content of work capabilities and experience. Students should conclude that staring the company was and will be a good long term decision for Fraser. 2. Fraser managed to pivot her business during COVID-19 to delivering needed supplies. Would Balderson, Canadian Entrepreneurship & Small Business Management, 12th Edition Prepared by Peter Mombourquette