Creating functional components is the modern standard for React development, providing cleaner syntax and better performance than class components. As the creator of CoreUI, a widely used open-source UI library, I’ve built thousands of functional React components for buttons, forms, navigation, and complex dashboard layouts in enterprise applications. From my expertise, the most modern approach is to use arrow function syntax with proper TypeScript typing. This method provides concise code, better tree-shaking, and seamless integration with React Hooks for state and lifecycle management.