Business creation refers to the transformation of a creative project into a commercial and economic activity. It involves a number of steps, including conducting market research to identify potential customers and competitors, setting development objectives, making key financial decisions, and completing a series of legal activities. Ultimately, the results of these efforts are formalised in a document known as a business plan.
The success of any new venture hinges on the ability to deliver a unique and innovative product or service that appeals to a wide range of consumers. This requires extensive market research, as well as a thorough analysis of existing products in the same space. A good idea should also be able to differentiate itself from the competition, whether by offering something that isn’t already available or by presenting it in a more accessible manner.
Entrepreneurship is essential to a healthy economy. Companies less than five years old add 1.5 million jobs to the U.S. economy each year, and immigrants are more likely to start businesses than non-immigrants. However, public policy needs to be rethought to address some of the barriers that prevent more people from starting their own businesses.
The COVID-19 pandemic of 2020 provided many with a new opportunity to launch their own enterprises. In fact, data from the Current Population Survey indicates that in the first quarter of 2021, there were twice as many business applications from “likely nonemployers” than from “likely employers.” The surge in business applications is also reflected in other Census Bureau data.