I think that the question is intriguing....so thanks for posting it...... but probably is WAY oversimplified. The answers to almost every question there will change based upon some very basic business premise variations. Let's take a look at a couple:
I can create a "pottery business" in lots of ways. Let's look at 2 of them.
Way #1..... figure out what people want/need, what they will pay for it, and then make those objects.
Way #2...... make objects that you love to make, and then find people who are interested in those objects, and can afford to pay for them.
Those are two totally different approaches to running a "pottery business". Both viable if you want to call 'economic success' the sole yardstick.
Way #1 - I can create a "pottery business" that is solely comprised of myself.....a sole proprietorship where I do everything. I use tools and equipment that is appropriate to that approach.
Way #2 - I can create a "pottery business" that is managed and guided by myself, but has a few employees that are taking on specialized aspects of the tasks involved, and I can invest in machinery that increases production efficiency commenusrate with a "small factory" kind of approach.
Again..... VERY different business models. #1 possibly less capital and labor intensive... #2 likely very capital and labor intensive.
No one right answer for all. However there might be one right answer for one specific individual.
I think for almost every industry/endeavor it is the distribution/sales channel that is the key to success. The supplies and labor channel can sometimes be challenges to the business.... and sometimes fatal...... but they usually can be overcome if the sales side is there.
Small businesses almost always fail due to a combination of under-capitlization and poor planning for necessary start-up period cashflow issues.