Business creation is the process of turning a creative project into a profitable and sustainable economic activity. Creating a business requires an understanding of the laws and regulations that govern business ownership, as well as knowing how to develop, market and deliver products or services. It also involves establishing the company’s finances, including writing a business plan and obtaining the necessary licensing or permits.
Entrepreneurs play a crucial role in the economy. They increase overall national income by providing employment and generating taxes. They add to the country’s gross domestic product by developing new goods and technologies, expanding the market for existing businesses, and sometimes displacing older or less-efficient methods of production. They bring social change with innovative inventions that break tradition and reduce dependence on outdated systems. Smartphones are one example. They also use their wealth to invest in community projects and to support charities and other non-profit organizations.
Despite these important benefits, starting a new business is costly in terms of both time and money. It is only about two-fifths of all start-ups that reach profitability, and even small gains in the percentage of successful ventures could yield significant benefits to society. Nurturing entrepreneurship is therefore a key policy goal for nations, but doing so has a range of associated costs and trade-offs that are complex to understand and measure. This book is designed to address that complexity, drawing on representative samples of nascent businesses and highlighting their unique characteristics. It will be an illuminating reading for scholars and students interested in the study of entrepreneurship, for those seeking to improve their own entrepreneurial ventures, and for policy makers emphasizing programs that support business creation.