Business creation is the emergence of new firms in market economies. It is a major source of economic growth and adaptation and an important career choice for millions of people. Yet, until recently there was little systematic evidence about the underlying causes and outcomes of business creation.
This book presents a thorough assessment of the current state of knowledge about the business creation process. It draws on representative samples of early stage nascent ventures to provide empirical descriptions of the major factors involved, and it focuses attention on those two-fifths of all nascent ventures that reach profitability. It is intended for scholars concerned with business creation, including those interested in entrepreneurial processes and outcomes, and also for policy analysts who emphasize programs designed to increase participation in entrepreneurship.
The standard starting point is to find an idea that fits with current consumer trends and aspirations. Often this is done by looking at existing products or services and asking “What if this service was available in my city or town?”
Another step involves examining the feasibility of the idea through conducting a market study to determine whether there is a clientele willing to pay for the product. This will also help you establish a pricing strategy and other elements related to the penetration of the business into the market.
Finally, you need to put the idea into practice. This can involve a variety of activities such as carrying out a market survey, writing financial forecasts and choosing a legal form.