This essay should call attention to critical success factors for new businesses and
summarize important issues in the area of Entrepreneurship. Derived from that, it should point out what kind of start-up is the most worthwhile to put money into.
First of all what is the increased significance of new businesses based on? Their relevance for the national economy seems to be frequently underestimated. They are the backbone of the most successful economies and show immoderate dynamic growth. For instance 70% of all over 100-year old German companies are small family businesses. In most cases entrepreneurs create jobs, whereas managers in established companies actually tend to cut jobs. Relating to the Global Entrepreneurship Monitor 2005, almost 74% of all jobs are generated by entrepreneurs and small businesses. Nevertheless their probability of surviving is considerably affected by critical success factors,
which should be discussed in the following.
Inhaltsverzeichnis (Table of Contents)
- Introduction: Commercial Relevance of New Businesses
- Definition of Success
- Critical Success Factors For New Businesses
- From Business Idea to Business Expansion
- Financing
- Market Entry
- Resources: Dependency on Founder
- Know-how through Networks
- Conclusion: Investment Decision And Business Plan
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay examines critical success factors for new businesses, aiming to highlight key issues in entrepreneurship. It delves into the significance of new ventures for the national economy and ultimately explores the most promising investment opportunities in start-ups.
- The significance of new businesses for national economies.
- The challenges faced by new businesses in securing financing and capital.
- The importance of a strong business idea, strategic market entry, and unique product offerings.
- The dependence on founder expertise and the need for effective management skills.
- The role of networks and collaborations in facilitating success.
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction emphasizes the critical role of new businesses in driving economic growth, particularly in the context of established companies often reducing jobs. It cites statistics highlighting the job creation power of entrepreneurs and small businesses.
The second chapter defines success factors as internal and external variables that contribute to a company's long-term sustainability. It outlines attributes of successful startups based on a survey of 8,500 founders, including factors such as a strong business plan, secure financing, and strong network connections.
The third chapter delves into critical success factors, starting with the journey from business idea to expansion. This chapter highlights the need for a compelling business strategy, market demand, and the ability to translate ideas into actionable measures.
The fourth chapter focuses on financing, emphasizing the necessity of external funding for early-stage businesses due to high initial investments and limited internal cash flows. It discusses the importance of intellectual property protection through patents, managing income stream uncertainties, and the challenge of securing sufficient equity capital.
The fifth chapter addresses the complexities of market entry, outlining the cost disadvantages faced by startups compared to established companies. It highlights the need for unique product offerings, overcoming entry barriers, and minimizing time lags caused by legal regulations or competitive pressures.
The sixth chapter explores the critical role of resources, particularly human resources, in the success of a startup. It underscores the founder's crucial role in management, product development, and meeting consumer demand, emphasizing the need for strong leadership and specialized expertise.
Schlüsselwörter (Keywords)
The key themes explored in this essay include entrepreneurship, critical success factors, new businesses, financing, market entry, resources, networks, and innovation. These keywords underscore the importance of navigating financial challenges, developing unique products and services, and harnessing the power of effective management and strong networks in establishing successful startups.
- Quote paper
- Dipl.-Kfm. (Univ.), B.A. Christian Kneer (Author), 2005, Critical Success Factors For New Businesses, Munich, GRIN Verlag, https://www.grin.com/document/134364
