Business Creation
Business creation is the process of turning an idea for a product or service into a successful company. It involves researching the market, establishing a plan and completing various legal activities, such as registering a business and paying taxes. It also includes obtaining funding and growing the business to profitability. The best way to start a business is to look for gaps in the market that you can fill with your unique product or service. This can be done by looking at what services and products already exist and asking “What if?” questions. For example, what if a certain company provided a better quality of service or had a cheaper product?
Entrepreneurship is a key component of economic growth and adaptation. However, most start-up ventures do not succeed in reaching profitability and some even close down within a short period of time. This is largely due to the high costs of starting a new business. In this book, Reynolds analyses the major factors associated with business creation based on representative samples of early stage nascent ventures and examining the characteristics of the two-fifths that achieve profitability.
It also investigates the different theories that explain why individuals decide to start a business. This includes the management approach, which states that the creation of companies is a rational decision process in which entrepreneurs’ knowledge about business management is decisive (Cardozo Crowe Reference Cardozo and Crowe 2010). It also looks at the psychological approach, which suggests that some individuals have personal characteristics that make them more likely to become entrepreneurs (Stevenson Reference Stevenson 2000). This book will be of interest to scholars concerned with business creation as well as policy makers who are interested in programs and policies designed to boost entrepreneurial activity.