Creating your own business offers independence and personal rewards, often beyond the financial. However, it requires a lot of work and sacrifice. You will need to carry out market research, make key financial decisions and complete a series of legal activities.
A successful enterprise may grow in size and profitability, and reach Stage III. It may then be sold, at a profit or loss, or pass on to the next generation. It can also remain at Survival Stage, earning only marginal returns on invested time and capital (endpoint 2 on the chart). Many mom-and-pop stores are in this category as well as manufacturing businesses that fail to compete with imported products.
Entrepreneurship contributes to economic growth by developing new products and services, creating new markets, and enhancing the productivity of existing industries. The process is often referred to as the “gale of creative destruction,” which replaces inferior offerings with better ones.
The book provides a detailed empirical description of the major features associated with contemporary business creation, reflecting representative samples of early-stage nascent ventures in all economic sectors and industries. It is a useful resource for scholars concerned with business creation, as well as an engaging supplementary course book for upper division and graduate courses in business plan creation and research methods. Policy analysts focusing on programs and policies to enhance business creation will find it particularly enlightening. For example, it will help them better understand the underlying motivations for entrepreneurs, how they develop their entrepreneurial ideas, and the characteristics of the two-fifths of new enterprises that achieve profitability.