Critical Success Factors For New Businesses

Seminar paper from the year 2005 in the subject Business economics - Company formation, Business Plans, grade: 1,7, University of Hull, language: English, abstract: 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.