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Business Creation

Ten Factors for Entrepreneurial Success

Paul D. Reynolds

Business creation, or entrepreneurship, is a major source of national economic growth and adaptation as well as an important career choice for millions. In this insightful book, Paul D. Reynolds presents an overview of the major factors associated with contemporary business creation, reflecting representative samples of US early stage nascent ventures, and emphasizing the unique features of the two-fifths that achieve profitability.
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Chapter 2: It can be very satisfying

Paul D. Reynolds

Extract

People that start successful businesses are among the most satisfied in the economy. The billionaire entrepreneurs featured in the media are clearly pleased with their success and attention, brimming with self-confidence and optimism. Perhaps even more significant is the growing body of research indicating that business owners and entrepreneurs are more satisfied with their work careers than wage and salary workers; this is true at all levels of occupational sophistication. Examples of the satisfaction from creating a profitable business are described below: Mary (26 years old) is very satisfied with the experience of working with four partners, three men (30, 53 and 38 years old) and one other woman (50 years old). All with five to 35 years of work experience and two who had been involved in three or more start-ups. They joined the effort with equal shares in a new pet boarding business and planned on maximizing growth by serving local customers. Noticing a strong demand for the service at the same time as an interest in business creation developed, the team began to develop the business idea. Six months later work began on a business plan, including defining the market to be served, creating financial projections, organizing the start-up team, and investing personal funds in the development of the business. After 12 months, promotion of the venture was initiated, capital assets were acquired, supplies were purchased (some with supplier credit), external funding was pursued, and the chief operating officer began to devote full-time to the business. After 24 months employees were hired and income was received from providing the services. By 40 months the monthly income covered recurring expenses and the salaries of the owner–management team. At last contact the firm had 23 employees and appeared to have a promising future. Mary, who had moved into the state three years before getting involved in business creation, has many reasons to be very satisfied with her life.

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