diff --git a/setup.sh b/setup.sh
index bf65666..bcdf746 100644
--- a/setup.sh
+++ b/setup.sh
@@ -1,7 +1,7 @@
 #!/bin/bash
 
 # =====================
-# Setup Script for PyFLO, MySQL, and FLO Token Tracking
+# Setup Script for PyFLO, MySQL, Virtual Environment, and FLO Token Tracking
 # =====================
 
 # Exit on any error
@@ -13,34 +13,71 @@ sudo apt update
 
 # Step 2: Install System Dependencies
 echo "Installing system dependencies..."
-sudo apt install -y build-essential libssl-dev pkg-config python3.7-dev python3-setuptools git
+sudo apt install -y build-essential libssl-dev pkg-config python3-setuptools git
 
 # Inform the user
 echo "System dependencies installed successfully."
 
-# Step 3: Install MySQL
-echo "Installing MySQL server, client, and development libraries..."
-sudo apt install -y mysql-server mysql-client libmysqlclient-dev
+# Step 3: Check and Install Python 3.7
+echo "Checking for Python 3.7..."
+if ! python3.7 --version &>/dev/null; then
+    echo "Python 3.7 not found. Installing Python 3.7..."
+    sudo add-apt-repository ppa:deadsnakes/ppa -y
+    sudo apt update
+    sudo apt install -y python3.7 python3.7-venv
+    echo "Python 3.7 installed successfully."
+else
+    echo "Python 3.7 is already installed."
+fi
 
-# Start and enable MySQL service
-sudo systemctl start mysql
-sudo systemctl enable mysql
+# Step 4: Set Up Virtual Environment Using Python 3.7
+VENV_NAME="myenv"
+echo "Setting up virtual environment using Python 3.7..."
+/usr/bin/python3.7 -m venv $VENV_NAME
+echo "Virtual environment '$VENV_NAME' created successfully."
+
+# Activate the virtual environment
+source $VENV_NAME/bin/activate
 
 # Inform the user
-echo "MySQL server and client installed successfully. MySQL service is running."
+echo "Virtual environment activated. Using Python version:"
+python --version
 
-# Step 4: Configure MySQL Default User and Privileges
+# Step 5: Check and Install MySQL
+echo "Checking if MySQL is installed..."
+if ! dpkg -l | grep -q mysql-server; then
+    echo "MySQL is not installed. Installing MySQL server, client, and development libraries..."
+    sudo apt install -y mysql-server mysql-client libmysqlclient-dev
+    echo "MySQL installed successfully."
+else
+    echo "MySQL is already installed. Skipping installation."
+fi
+
+# Step 6: Check and Start MySQL Service
+echo "Checking if MySQL service is running..."
+if systemctl is-active --quiet mysql; then
+    echo "MySQL is already running."
+else
+    echo "MySQL is not running. Starting MySQL..."
+    sudo systemctl start mysql
+    echo "MySQL service started."
+fi
+
+# Enable MySQL to start on boot
+sudo systemctl enable mysql
+
+# Step 7: Configure MySQL Default User and Privileges
 echo "Configuring MySQL user and privileges..."
 MYSQL_USER="FUfB6cwSsGDbQpmA7Qs8zQJxU3HpwCdnjT"
 MYSQL_PASSWORD="RAcifrTM2V75ipy5MeLYaDU3UNcUXtrit933TGM5o7Yj2fs8XdP5"
 
-sudo mysql -e "CREATE USER '${MYSQL_USER}'@'localhost' IDENTIFIED BY '${MYSQL_PASSWORD}';"
+sudo mysql -e "CREATE USER IF NOT EXISTS '${MYSQL_USER}'@'localhost' IDENTIFIED BY '${MYSQL_PASSWORD}';"
 sudo mysql -e "GRANT ALL PRIVILEGES ON rm_%_db.* TO '${MYSQL_USER}'@'localhost' WITH GRANT OPTION;"
 sudo mysql -e "FLUSH PRIVILEGES;"
 
 echo "MySQL user '${MYSQL_USER}' created and granted privileges on databases matching 'rm_%_db'."
 
-# Step 5: Clone the PyFLO Repository
+# Step 8: Clone the PyFLO Repository
 if [ ! -d "pyflo" ]; then
     echo "Cloning the PyFLO repository..."
     git clone https://github.com/ranchimall/pyflo
@@ -48,7 +85,7 @@ else
     echo "PyFLO repository already exists. Skipping clone."
 fi
 
-# Step 6: Install Python Dependencies
+# Step 9: Install Python Dependencies
 echo "Installing Python dependencies..."
 if [ ! -f "requirements.txt" ]; then
     # Generate a requirements.txt file if missing
@@ -68,14 +105,14 @@ pip install --upgrade pip
 # Install Python packages
 pip install --use-pep517 -r requirements.txt
 
-# Step 7: Install PyFLO
+# Step 10: Install PyFLO
 echo "Installing PyFLO..."
 sudo python3 pyflo/setup.py install
 
 # Inform the user
 echo "Python dependencies and PyFLO installed successfully."
 
-# Step 8: Clone the FLO Token Tracking Repository
+# Step 11: Clone the FLO Token Tracking Repository
 if [ ! -d "flo-token-tracking" ]; then
     echo "Cloning the FLO Token Tracking repository (mysql-migration branch)..."
     git clone --branch mysql-migration https://github.com/ranchimall/flo-token-tracking
@@ -83,15 +120,18 @@ else
     echo "FLO Token Tracking repository already exists. Skipping clone."
 fi
 
-# Step 9: Navigate into the FLO Token Tracking Directory
+# Step 12: Navigate into the FLO Token Tracking Directory
 echo "Navigating into the FLO Token Tracking directory..."
 cd flo-token-tracking
 
-# Inform the user
-echo "You are now in the FLO Token Tracking directory. Setup complete!"
+# Step 13: Start the Python Application
+echo "Starting the Python application 'tracktokens-smartcontracts.py'..."
+python3.7 tracktokens-smartcontracts.py
 
 # Final Instructions
 echo "========================================================"
 echo "Setup is complete. MySQL server is installed and running."
+echo "Virtual environment '$VENV_NAME' is set up and active."
 echo "MySQL user '${MYSQL_USER}' has been created with privileges on databases matching 'rm_%_db'."
+echo "The Python application has been started."
 echo "========================================================"