Ten Lessons From Research on Business Creation
The recent resurgence in business creation is evidence of an economic recovery. It is a welcome development, since new businesses create jobs and provide a foundation for economic growth. In addition, entrepreneurship contributes to the quality of life of entrepreneurs and their families through the financial rewards generated by their investment in their startup ventures. Moreover, successful companies can generate additional wealth by attracting investments from other firms and individuals. Entrepreneurs reap the personal satisfaction of seeing their startups evolve into thriving enterprises, and they can take pride in their leadership skills and contributions to community development.
Entrepreneurs can also find gratification in being their own bosses, setting their own schedules and making decisions that impact their standard of living. Parents may have a desire to make sure their children are well provided for by starting a family business that can be passed down to future generations. And, as a side benefit, starting a business can help to build stronger family bonds.
But the process of turning an idea into a thriving enterprise is not for everyone, as many startups fail. Even the best business ideas have to be carefully analyzed and refined, as well as validated that there is a market willing to pay for their products or services. And, the business model has to be formalized in a document called a business plan. This article describes ten lessons that have been learned from research on business creation. These lessons are very relevant for those thinking of or involved in entrepreneurial ventures and to the design of policies that might facilitate business start-ups.