Business creation refers to the launch of a new combination of production factors, whether it be a product or service. The process of business creation involves several phases such as evaluating the potential for profitability, choosing a legal structure and making financial projections. It is important to note that not all start-ups are successful. In fact, only about two-fifths of nascent ventures reach profitability (Schumpeter Reference Schumpeter1934). Nonetheless, the launch of new firms contributes to social well-being, promoting employment, stimulating innovation, and mobilizing resources (Acs et al. Reference Acs, Audretsch, Braunerhjelm and Carlsson2010).
It is essential to select a good business idea in order to successfully launch a new company. This requires a detailed evaluation of the market and identifying unexploited gaps or niches, as well as considering personal characteristics such as the ability to perceive opportunities, self-efficacy and fear of failure.
Finally, a careful analysis of the economic and social context is also required in order to determine whether the proposed business is viable. This can be done by comparing the proposed business with similar existing businesses, as well as by carrying out a feasibility study to establish the level of demand for the product or service in question.
Once the selected business idea has been thoroughly analyzed, it is important to take into account the time and investments necessary to set up the new company. The ideal time to start a business will vary depending on the nature of the product or service and on seasonality. For example, it may be better to launch a nonseasonal business in the spring or fall, whereas a seasonal business should be launched one quarter before its predicted busy season.