Business creation is the process of developing a new business or venture. It can involve a variety of activities, from creating a business plan to registering a company and marketing your product or service. It can also include making significant personal sacrifices in the name of business success, such as spending your evenings and weekends working on your startup.
A high rate of business creation during the pandemic is a positive sign for our economy’s resiliency. The surge in new business applications has been broad-based across all major industry sectors, with some of the largest increases occurring in transportation and warehousing; accommodation and food services; retail trade; and health care and social assistance.
Many entrepreneurs start businesses in order to gain independence or achieve financial wealth, especially if they are not satisfied with the wages of their current job. Others may choose to start a business because it is a way to pursue their passions, such as cooking, art, or fitness. In addition, starting a business can offer the opportunity to build equity that can be sold or passed on to the next generation.
The rich descriptions of the start-up process offered by these surveys provide substantial evidence relevant to adjusting public policy to encourage entrepreneurial activity. The findings from these surveys are consistent with previous research describing the characteristics of successful entrepreneurs and their early stage nascent ventures, as well as with the results of follow-up interviews and the experiences of individuals who create their own businesses.