A successful business requires much more than a good idea. It demands good organizational skills, flexibility and creativity. It also takes a lot of time, and some personal sacrifices. If you aren’t prepared to commit the time and resources, then owning your own business is probably not for you.
The term ‘business creation’ refers to the process of transforming an original creative project into a profitable economic activity. This involves a wide range of studies, from a market environment analysis to the choice of commercial strategy and the legal form of the company (whether it be a sole proprietorship, a limited partnership, a joint venture or a public limited company). It is essential to formalize all these aspects in a document known as the business plan.
For some entrepreneurs, success is measured by annual revenue and profits. For others, it may be the achievement of a specific goal or inspiring a community to take significant action. Whatever the definition, success is only possible if you have a clear vision of what you want to achieve.
Entrepreneurs contribute to the economy through their efforts to improve productivity and develop new economic sectors. They also add to national income, which in turn allows governments to spend more on social projects. This is why many countries support and encourage the creation of private enterprises. But start-up activity is expensive and only about two-fifths of businesses reach profitability. This leads policy makers to debate how to balance the benefits of more business creation with its costs.