Factors That Affect the Success of a Business Creation
A new company’s start-up phase is a crucial moment for any entrepreneur. Whether it takes a few months or years, the success of your business will depend on several factors, including market research and building an efficient team of employees. It also involves registering your business, finding funding, and establishing a budget for initial operational costs.
The creation of new companies contributes to the economic development of any territory through employment, innovation, and resource mobilization. However, the start-up process has a high cost in terms of both time and money. Only about two-fifths of nascent ventures reach profitability, and this figure is lower in countries with low levels of participation in entrepreneurship (Schumpeter Reference Schumpeter1934).
One major factor in starting a company is finding an idea. Many people think that they need a unique idea that no one else has thought of before, but this is not always the case. You can find business ideas by looking at the products and services that already exist and thinking of ways to improve them. For example, if you’re interested in starting a cleaning service, you could look at existing businesses and find out how they are marketed.
Another factor is the environment in which an individual lives. This includes their socialization and how they are exposed to entrepreneurship. For example, some studies suggest that men are more likely to become entrepreneurs than women, but others have found that this is not true in all regions and cultures (Verheul Reference Verheul, Van Stel, and Thurik2006; Avolio Alecchi Reference Avolio Alecchi2020). Some regions may even have specific characteristics that make it easier for individuals to create a company.