November 12, 2008

News & Opinion: Not that risky. Start your business already.

By: 800-CEO-READ @ 3:24 PM – Filed under: Management & Workplace Culture

Can we finally put to bed the idea that starting a business is super risky? I was looking at What Stopping You? by Bruce Barringer and Duane Ireland today and they quote research from the SBA:
According to Brian Headd, an economist for the U.S. Small Business Association, 66% of new businesses are still operating after two years, 50% survive four years or more and 40% survive six years or more. Additionally, about one-third of all businesses that close or are sold are considered to be successful by their owners (1).

The book Startup Nation presented some similar research in 2005. Joel Kurtzman's work with PricewaterhouseCoopers presented in Startups That Work says the same exact same thing.

The point is that the oft-quoted statistic that 9 out of 10 business fail in their first few years is completely false.

Adjust your future plans accordingly.