INSEE’s Definition of Business Creation
Whether you are an inventor with a new product, a business person looking to start your own venture, or a professional seeking greater control of your career, becoming an entrepreneur is one way to make your dreams a reality. Creating a business involves researching potential market opportunities, making important financial decisions, and completing a series of legal activities.
Often, entrepreneurs must invest their own funds to create a business. They raid their savings, borrow from friends and relatives, or even risk their retirement savings or good credit. They take the risk that their business will fail. The reward is that they are in charge and can follow their passion.
They may also reap substantial rewards from the success of their enterprise. Thriving businesses generate a host of economic benefits, including jobs, tax revenues, and community development projects. They tend to attract other companies in their field and attract customers that they wouldn’t have reached otherwise. Entrepreneurs also invest in the community by supporting local charities and investing in community projects.
The study of business creation is a complex task that requires rich descriptions of the start-up process. These descriptions are necessary to provide insights into the processes underlying business start-up, and to enable adjustment of public policy to encourage more entrepreneurial activity. INSEE’s definition of business creation, which describes the implementation of a new combination of production factors, is a valuable tool to this end.
