1. Entrepreneurship is a source of economic growth.
While working for someone else may bring in the paychecks, entrepreneurs are responsible for driving the success of their own companies. As the owner, they can shape their company to be a reflection of themselves and what they are passionate about. This can provide a sense of personal fulfillment that many find in their work that they do not get when they work for someone else.
2. Business creation allows entrepreneurs to follow their passions.
Many entrepreneurs begin a business to follow a dream that they have had for some time. They want to use their creativity and talents to create a product or service that people will buy, and they will take pride in the fact that it was their own vision and hard work that created the end result. Getting to this point often requires research and market testing to ensure that the idea will be successful in its current form. It can also involve finding ways to differentiate a business from its competitors and finding ways to make the product or service more cost effective.
3. Business creation is an important component of economic recovery.
Strong rates of business creation will help drive the economy forward. This will require intense work to determine policy actions that are meaningful to entrepreneurs and supportive of business owners. There is bipartisan support for these efforts. However, it is crucial to remember that most new businesses do not survive the first year. According to 2021 Statista data, only about 80% of new businesses are still operating after one year.