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The act of entrepreneurship is creating a new business while developing and scaling it up until profit is generated. It typically involves a flexible approach whereby entrepreneurs take their career and vision into their own hands and innovate new ways of selling a service, product, or procedure.
Most entrepreneurs will have these personality traits:
- Autonomous: They set their own goals and have full control their own progress while running their businesses based on how they see fit
- Purposeful: They have clear purpose in what they want to accomplish and are motivated to work hard to make that happen
- Flexible: They can adapt to situations easily and quickly without the traditional constraints of a rigid corporate culture
Stages of Business Growth
Companies generally go through three phases of growth:
- Development Stage
This is also considered the start-up phase where the business is still in infancy, or may not have even been incorporated The business idea is developed and tested for viability before the first version is launched. Feedback is used to further improve the product or service.
- Growth Phase
The growth phase sees the business idea succeed in gaining recognition and generating rapid sales income and an inflow of new customers. The business will also become profitable at this stage while expanding in size.
- Maturity Phase
After a period of growth, the business starts to stabilize and so do profit and sales figures. Growth rates start to slow and entrepreneurs face the decision of extending their business life cycle by pushing for further expansion in emerging markets and investing in new technologies. Alternatively, this could also be the stage that the entrepreneur decides to exit through a merger or acquisition.
Start-ups Survival Rate
A 2018 Singapore Business Review report has shown that Singaporean start-ups have a 5-year survival rate of 52.7%, which is higher than the survival rates of the United States (U.S.) and the United Kingdom (UK) at 49% and 42% respectively.
At 3E Accounting, we want to help start-ups sustain growth, overcome obstacles and contribute in improving the overall survival rates. We believe that companies can be evergreen if they are managed properly.
More Resources About Entrepreneurship
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Importance of a Business Plan
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Free and Economical Tools and Resources Entrepreneurs Can Utilise
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Measuring Business Success
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Selecting the Right Funding Option, Why It is Crucial to Start-ups
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