Business creation is the process of starting a company. People start businesses for many different reasons. Some are looking for a better way to make money, while others are attracted to the entrepreneurial lifestyle. In either case, the first step is to have a good idea. A good idea can come from many sources, including current consumer trends and your own interests and passions. If you are passionate about hiking, for example, you might want to start a company that sells hiking gear or offers guided hikes.
Another important step is doing market research to determine whether there is a clientele interested in your product or service and if your price points are appropriate. It’s also important to know how you want to structure your business (e.g., sole proprietorship vs. partnership).
Many studies highlight cognitive variables as among the determining characteristics of entrepreneurs. These are the personal characteristics that influence the perception of opportunities and the decision to become an entrepreneur. According to the literature, these characteristics include self-efficacy and fear of failure. Moreover, it is commonly thought that the likelihood of becoming an entrepreneur is higher in developed countries (Baron Reference Baron2004).
In contrast, studies in Latin America report that men are more likely to be entrepreneurs than women. This could be due to the fact that these territories are characterized by low levels of economic development and access to jobs is more difficult. Alternatively, it could be that men have more confidence in their abilities and thus are more willing to take risks in order to start a company.