Business creation is the process by which entrepreneurs form new enterprises. The process has many facets, including creating a new product or service, developing and testing the idea, raising money, managing a team, and building the business model. Entrepreneurs also need the willingness to assume significant risks—in terms of time, equity and career commitment. They must have the creative skills to formulate a successful venture team, and they need the organizational skills to marshal needed resources.
Entrepreneurship is a crucial driver of economic growth and adaptation. Yet, start-up activity has significant social costs, with about two-fifths of all new businesses failing to reach profitability. Policy makers struggle with the trade-offs between encouraging more firm formation and incurring these high social costs. This insightful book provides empirical descriptions of the underlying mechanisms of contemporary business creation. Based on representative samples of nascent entrepreneurs and ventures, the authors assess the factors that lead to the success or failure of a business.
The author breaks down the business creation process into phases that are common to most successful startups, including ideation, validation, fundraising and launch. The book is an excellent resource for anyone interested in being their own boss or pursuing a creative project.