Business creation is one of the most important activities in market economies- it provides a major source of entrepreneurial growth and adaptation, and the starting point for many new jobs. However, there are many things that can go wrong in the process of launching and managing a new firm. A wealth of research has provided substantial, systematic information about the start-up experience-information that is useful for anyone considering starting a business and for those interested in adjusting public policy to facilitate entrepreneurial activity. This “lessons learned” review of the best available evidence focuses on ten important issues.
The First Steps of Business Creation
Getting started as an entrepreneur begins with a good idea. This can be anything from a restaurant to a cleaning service to e-commerce. Regardless of the business, upfront research is essential to determine whether there is a clientele for the venture, and to understand the potential size of the firm, how it should be organized, and what steps need to be taken to get started.
The COVID-19 pandemic has caused a surge in business applications-total business applications in 2021 were 53 percent higher than the total recorded in 2019. Some argue that the surge is a reversal of the long-term downward trend, others suggest it is just a blip and is driven by the panic and uncertainty of the moment. It will take months to see how many of these new business applications actually turn into firms that hire workers. But, if even a modest portion of the recent wave of high-propensity business applications does become a successful new employer, it would greatly help smooth the economy’s transition out of this economic shock.