Business creation — a process through which individuals develop and launch new businesses — is a major source of economic growth and adaptation and an important career choice for millions. Despite this, beyond a wealth of individual success stories and analyses reflecting convenience samples, there is a dearth of systematic information about the nature and basic features of business creation. This article presents empirical descriptions of a broad range of relevant characteristics of contemporary business start-ups, reflecting the best available evidence from representative samples of nascent entrepreneurs and their nascent ventures. It is followed by in-depth assessments of the outcomes, including profitability, of these ventures.
Entrepreneurs start businesses for a variety of reasons. Some are opportunistic and look for financial opportunities that can be exploited, while others have a specific business idea that they would like to see brought to market. Then there are the innovators, those rare individuals who think of a product or service that no one else has thought of before, and who make it their mission to bring it to life.
Before launching a new business, it is advisable to solidify the idea and to do some market research. This can be a good way to determine whether there is a clientele willing to pay for the goods or services you are offering, and it can also help you find out about competing products and their prices. At the same time, it is a good idea to check if your business requires any licenses and permits.
