The Guide to Entrepreneurship

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Chapter 5

New Venture Creation

5.1 Introduction

“Entrepreneurship is a marathon, not a sprint.”

Statistics show that approximately 20,000 new businesses will start this week

alone. Over 85% of those businesses will have sales of less than $1 million

per year and have less than 20 employees ve years after their establish-

ment. Most of those businesses are mom-and-pop establishments, composed

of restaurants, retail stores, coffee houses, etc. In this Guide, we will concen-

trate on those new ventures that depend on formal technologies and seek

large amounts of external capital for growth. These new ventures exhibit the

following characteristic