Here is the skinny on updated failure rates of new businesses as what appears to be that New Business Success Rate is Improving, according to new stats from the SBA, that going into business is a better than in recent past. If you are a worry wort and aren’t sure being in business for yourself, DON’T! But look at the landscape, research, and you will see that chances of success are improved. The following article, published in the BUSINESS INSIDER, encourages would be business start ups to look at the improved and positive side outlook of going into business today.
Don’t Retreat: Surge Forward to Succeed
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Who says you can’t succeed NOW? The long-held belief that 50% of businesses fail in the first year and 95% fail within the first five years has changed according to more recent statistics published by the Small Business Administration (SBA).
According this report, 7 out of 10 new employer establishments survive at least 2 years and half at least 5 years. The Small Business survival rate has improved from 50% of businesses failing in their first year to 7 out of 10 (58%) of new businesses surviving at least two years, and 50% at least 5 years. Looking at this, especially since 2008, makes it all the more positive and hopeful for people starting businesses and succeeding, regardless of external conditions.
Scott Shane, Professor of Entrepreneurial Studies at Case Western Reserve University and author of nine books on entrepreneurship says:
“Failure rates are high because a large number of inexperienced entrepreneurs start businesses that shouldn’t be founded in industries that are unfavorable to new companies.”
Additionally, the SBA lists other reasons businesses fail including being under capitalized, not having a bankable and marketable product or service, sales strategy and marketing plan. These reasons have always been why businesses fail, but today it makes them fail much faster. Too much competition and more sophisticated technology and business tools are necessary to succeed. Original story here.
Well, are you a doer or going to stand on the sidelines and wait, wait, and wait some more, or are you paying attention that the New Business Success Rate is Improving? Get moving! Franchise opportunities, many business owners want to sell, deals to be made. And what better way to get started when you are need of capital infusion to help with your business ownership dreams with business loans, real estate loans, a wide variety of lending programs, SBA and conventional. Visit us at www.newlandcommercialfunding.com today! And please share this positive, good news.