A business creation, or entrepreneurship, is a major source of economic growth and adaptation, as well as an important career choice for millions. Despite this, until recently there was little systematic information on what drives individuals to start businesses and the processes they undergo to reach operational success. The advent of longitudinal studies of early-stage nascent ventures has changed that. This book presents a rich empirical description of key features of the business creation process, drawing on representative samples of entrepreneurs and their pre-profit ventures in the United States and highlighting the unique characteristics of the two-fifths that achieve profitability.
The emergence of new companies creates employment and wealth by adding to national output and boosting the value of existing assets. Entrepreneurship also helps free firms that are stuck in a permanent state of decline by allowing them to exit their old markets or even to create entirely new industries and become the engines of future economic growth.
To prepare for a successful business startup, you need to know your industry and competitors inside and out. This means understanding the nuances of the product or service you want to sell, including the strengths and weaknesses of current market leaders and how your business will differentiate itself from them. You should also be able to identify the customer base and provide data supporting your assertion that there is sufficient demand for your products or services to make a profit. You will also need to present any relevant research, such as market potential data, a breakdown of the current share of the market by competitor, and the results of surveys or focus groups.