Starting a business is a major undertaking and can be a once-in-a-lifetime chance to pursue your dreams. It is also an opportunity to contribute to your community and find personal fulfillment. Business creation, often called entrepreneurship, is a critical source of economic growth, innovation and adaptation as well as an important career choice for millions of people.
In 2021, there was a surge in new (employer) business formation after a four-decade decline. This is reflected in data from the Census Bureau’s Business Dynamics Statistics, which tracks the transition of business applications from likely nonemployer businesses to actual employer firms with payrolls. This is a much more reliable measure than the Census Bureau’s Current Population Survey estimates of business creation, which may include some non-employer businesses.
A key step in determining whether your business idea is feasible is to conduct market research. This will help you identify and understand what clients are looking for in your area of expertise, as well as reveal information about your potential competitors. You will use this information to develop your marketing strategy, establish your prices and define the structure of your business.
This in-depth assessment provides rich descriptions of a wide range of relevant features of the start-up process using representative samples of early stage nascent ventures. It highlights a number of significant challenges facing policy makers seeking to enhance entrepreneurial activity and points to evidence that can be used in adjusting public policies to facilitate firm creation.