1. Introduction

Starting a business may sound complicated, but at its core it simply means “turning an idea into something real that people can use or buy.” Children often do this without noticing: selling lemonade, trading cards, or offering to wash cars. These simple activities are, in fact, small businesses. Adults do the same thing, but with more planning, paperwork, and money involved. Different parts of the world teach different ways of starting a business, based on local culture, government support, banking systems, and education (Burns, 2016).

This article explains the most widely known and used methods for creating businesses across five major global regions: the United Kingdom (UK), the United States of America (USA), Canada, the European Union (EU), and Asia. The goal is to present these methods in a way that a child can understand, while still using academic research, proper theory, and Harvard-style references. Each method is introduced with both a simple explanation and academic context.

By the end, the reader will see that while people in different countries use different steps or tools to start a business, all approaches share the same purpose: helping an idea grow into something useful for society.

2. Traditional Business Planning

2.1 What it is (child-friendly explanation)

A traditional business plan is like a long, detailed school project. Before doing anything, you write down:

What you want to build
Who will use it
How much money you need
Who your competitors are
How you will make money

Banks love these plans because they help them understand if you can repay a loan.

Startup builder

2.2 Academic definition

A traditional business plan is a structured, multi-section document used to assess feasibility, financial forecasting, operational design, and strategic positioning (Barringer & Ireland, 2016). It is often required by banks, investors, grant bodies, and immigration authorities in the UK, EU, and Canada.

2.3 Where it is popular

UK: Used in banks, government grants, and academic programmes.
Canada: Strongly preferred for funding (Government of Canada, 2023).
EU: Required for many EU start-up grants and regional development funds.
Asia: Used in established industries (Japan, China, Singapore).

2.4 Simple example

If a child wants to open a lemonade stand, a traditional business plan would ask:
“How many lemons do you need? How much will they cost? Where will you set your stand? Who else sells lemonade?”

3. Lean Startup Method

3.1 Simple explanation

Lean Startup teaches you to start small, test fast, learn quickly, and not waste money. Imagine drawing a picture, showing it to friends, and improving it each time — instead of trying to paint a perfect masterpiece on the first try.

3.2 Academic foundation

Lean Startup emerged from Silicon Valley and was formalised by Ries (2011), building on the customer development theory of Blank (2013). Its famous cycle is:
Build → Measure → Learn.

3.3 Key ideas

MVP (Minimum Viable Product)
Rapid testing
Continuous learning

3.4 Where it is popular

USA: The global centre (Silicon Valley).
Asia: Especially China, India, Singapore (Wang, 2020).
UK/EU: Strong adoption in entrepreneurship education.

3.5 Example

Instead of building a full lemonade shop, you first test by selling lemonade to two neighbours. If they like it, you continue. If not, you change the recipe.

Lean Startup Method entry level

4. Business Model Canvas (BMC)

4.1 Simple explanation

BMC is like a big poster divided into nine boxes. Each box explains a small part of your business. It helps people see everything in one place without reading long text.

4.2 Academic definition

Developed by Osterwalder and Pigneur (2010), the BMC is a strategic management tool that describes how a business creates, delivers, and captures value.

4.3 Where it is used

EU: Extremely common in innovation programmes.
UK: Popular in universities and accelerators.
Canada: Used widely in entrepreneurship training.
Asia: Adoption in Singapore, Korea, and emerging markets.

4.4 Example

A child selling cookies can use the BMC to map:

Customers: school friends
Value: tasty cookies
Channels: playground sales
Costs: flour, chocolate
Revenue: £1 per cookie

BMC

5. Effectuation Theory

5.1 Easy explanation

Effectuation means starting with what you already have, instead of waiting for the perfect moment. Children often do this naturally — they use whatever is nearby to create games.

5.2 Academic basis

Created by Sarasvathy (2001), effectuation describes entrepreneurial behaviour as flexible, resource-driven, and uncertain.

5.3 Principles:

Bird-in-hand (start with what you have)
Affordable loss
Crazy quilt (partnerships)
Lemonade principle (use surprises)

5.4 Regions where used

USA: Strong academic presence.
India: Highly applicable in resource-limited environments (Prashantham & Kumar, 2020).
EU & UK: Used in business schools.

5.5 Example

If you want to start a drawing business, but you only have three colours, you start with those instead of waiting to buy a big set.

Effectuation Theory

6. Design Thinking

6.1 Simple explanation

Design Thinking means understanding people deeply, finding their problems, and creating solutions step by step. It’s like asking friends what toys they want before building something.

6.2 Academic roots

Developed at Stanford University and popularised by IDEO (Brown, 2009). The stages are:
Empathise → Define → Ideate → Prototype → Test.

6.3 Regional popularity

USA: Especially in product design and tech.
EU: Integrated into innovation and service design.
Asia: Particularly strong in Japan, Singapore, and South Korea.
UK: Used in service design and public-sector innovation.

Design Thinking

7. Agile Startup / Iterative Development

7.1 Simple explanation

Agile means building something bit by bit, improving it constantly. Like doing homework in small pieces instead of all at once.

7.2 Academic context

Agile methods come from software engineering (Agile Manifesto, 2001). They emphasise iteration, collaboration, and adaptation (Highsmith, 2002).

7.3 Where used

USA & Asia: dominant in tech companies
UK/EU: widely used in software and digital startups
Canada: government and tech sectors

Agile Startup

8. Asia-Specific Models

8.1 Japan — Kaizen

Simple meaning: small improvements every day.
Academic basis: Imai (1986).
Used heavily in manufacturing.

8.2 India — Jugaad Innovation

Meaning: creative, low-cost solutions using limited resources.
Academic support: Radjou et al. (2012).

8.3 China — Copy–Adapt–Scale

Not a formal academic theory, but well-documented in innovation studies (Liu, 2019).
Meaning: start with an existing idea, improve it, scale fast.

8.4 Singapore & Korea — Accelerator-driven methods

Asia’s innovation hubs focus on government-supported accelerators (Cho & Lee, 2020).

9. European Union (EU) Business Creation Methods

9.1 EU emphasis

The EU blends traditional planning, innovation frameworks, and sustainability requirements.

9.2 Key EU frameworks

Horizon Europe innovation model
Social enterprise planning approaches
Circular economy entrepreneurship (Geissdoerfer et al., 2017)

9.3 EU characteristics

Strong regulatory environment
High demand for sustainability strategies
Grants requiring detailed plans and measurable impacts

10. Regional Comparison

11. Why This Knowledge Matters

Understanding business creation methods helps entrepreneurs reduce risk, save money, and make better decisions. Children who learn these methods early become more confident problem-solvers. University students gain broader understanding of global markets. Governments and companies use these methods to encourage new businesses and strengthen economies. Ultimately, all methods share a common goal: helping people build ideas that create value for society.

12. Conclusion

Although the UK, USA, Canada, EU, and Asia use different tools and cultural approaches, their business creation methods overlap in purpose. Traditional plans are strong for financing, while Lean Startup, BMC, and Design Thinking support flexible innovation. Asia offers unique models blending creativity and discipline. There is no single “best” method. Entrepreneurs often mix them, using planning for structure and Lean or Agile methods for speed. Ultimately, starting a business is about creativity, learning, and building something useful — principles that even a child can understand.

13. References (OBU Harvard Style)

Agile Alliance (2001) Manifesto for Agile Software Development. Available at: https://agilemanifesto.org

Barringer, B.R. and Ireland, R.D. (2016) Entrepreneurship: Successfully Launching New Ventures. 5th edn. Harlow: Pearson.

Blank, S. (2013) The Startup Owner’s Manual. Pescadero: K&S Ranch.

Brown, T. (2009) Change by Design: How Design Thinking Creates New Alternatives for Business and Society. New York: HarperCollins.

Burns, P. (2016) Entrepreneurship and Small Business. 4th edn. London: Palgrave.

Cho, S. and Lee, J. (2020) ‘Government-led Innovation Hubs in Asia’, Asian Business & Management, 19(3), pp. 267–289.

Geissdoerfer, M., Savaget, P., Bocken, N.M. and Hultink, E.J. (2017) ‘The Circular Economy – A New Sustainability Paradigm?’, Journal of Cleaner Production, 143, pp. 757–768.

Government of Canada (2023) Business Planning. Available at: https://canada.ca

Imai, M. (1986) Kaizen: The Key to Japan’s Competitive Success. New York: McGraw-Hill.

Liu, Y. (2019) ‘Chinese Innovation Strategy and Rapid Scaling’, Journal of Asian Economics, 62, pp. 18–30.

Osterwalder, A. and Pigneur, Y. (2010) Business Model Generation. Hoboken: Wiley.

Prashantham, S. and Kumar, K. (2020) ‘Effectuation and Entrepreneurship in India’, International Journal of Entrepreneurial Behaviour & Research, 26(4), pp. 857–875.

Radjou, N., Prabhu, J. and Ahuja, S. (2012) Jugaad Innovation. San Francisco: Jossey-Bass.

Ries, E. (2011) The Lean Startup. New York: Crown Business.

Wang, H. (2020) ‘Lean Startup in Asian Entrepreneurship’, Asia Pacific Journal of Innovation and Entrepreneurship, 14(2), pp. 213–229.

How Entrepreneurs Around the World Start Businesses: A Simple, Yet Academic Exploration of the UK, USA, Canada, EU, and Asia.