An Overview of Business Creation

Business creation, also known as entrepreneurship, is a major source of national economic growth and adaptation, as well as an important career choice for millions. Although considerable research in the early 1990s provided a wealth of individual success stories and analyses reflecting convenience samples, little systematic information was available on the nature and basic features of the firm creation process. This in-depth assessment fills the gap, offering a comprehensive and up-to-date overview of contemporary business creation. It draws on representative samples of nascent entrepreneurs and ventures to provide empirical descriptions of the broad range of relevant factors associated with their success and failure, and emphasizes the unique features of the two-fifths of firms that achieve profitability.

Whether you have a brilliant product idea or you’re just looking for a side hustle to boost your income, there are countless ways to turn your business dreams into reality. This guide will help you with everything from registering your business, to setting up your website, to figuring out how much you should charge for your products or services.

During the COVID-19 pandemic, new employer businesses launched at the fastest rate since the beginning of the current business cycle in 2016. This increase is reflected in data from the Census Bureau’s Business Dynamics Statistics (BDS), which tracks the transition of high-propensity business applications from a form for an Employer Identification Number (EIN) to a real business with a payroll. This article discusses the factors that contribute to this rise in new business creation and why it is likely to persist.