A business creation is the implementation of a new combination of production factors (like labor, capital, land and raw materials) to pursue a commercial venture. The success of a new business depends on a variety of factors, including the ability to identify a need and opportunity in the market, the product’s appeal, the quality of the product, competitive pricing and market demand. It also requires an entrepreneur to be able to handle the financial and legal challenges involved in starting a business.
The success rate of a new business is not as high as it might seem. According to 2021 Statista data, about 80% of new businesses survive their first year and only 35% are still in operation ten years later. The survival rate can vary by industry, though. For example, healthcare and social assistance businesses have a higher survival rate than construction or transportation industries.
While there are many reasons for a new business to fail, the most common reason is low sales. For that reason, a successful small business needs to have efficient operations and a reliable way to track sales.
The University of Utah’s Master of Business Creation program is a professional-degree program designed to help entrepreneurs grow their startup companies. The MBC program combines research-based entrepreneurship education with innovative, applied curriculum that includes access to mentoring, grants and scholarships. To apply for the upcoming class, complete a general University of Utah graduate application at the link above and select the MBC program for both in-person and online options at the bottom of the page.