Failure rates for startups
Filed in archive Entrepreneurship on July 8, 2005
Jeff Cornwall has the latest research on failure rates for startups and has surprising findings:
"As reported by the National Dialogue on Entrepreneurship, a new study from the Bureau of Labor Statistics "examines the survival rates of new businesses started between 1998 and 2002. It finds that 66% of new establishments started in 1998 were still operating two years after they started; forty-four percent were still operating in 2002." The only sector that showed significantly lower rates was the dot.com group, which Crashed during this time. Factoring that group out and we are getting closer to the 50% figure that most experts believe to be an accurate estimate."
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Tags: startup failure rates startups entrepreneurship failure+rates rates+startups venture+capital
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Rating: 6.00 out of 2 vote(s) cast.
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Response from:
Arthur Trueger
(10/05/07 4:37pm)
This report, although dated now, shows interesting figures. It is not surprising that online business with no brick and mortar locations have significantly higher failure rates than traditional brick and mortars. The barriers to entry for an online endeavor are much less than traditional off line business, and there is less preparation necessary to launch. The process of starting a business offline weeds out all the people without the know how or drive to properly run an organization, which leads to higher failure rates online.
Response from:
udtek1
(04/18/10 7:41pm)
Start a business is always easy. But do a good business is not so easy.
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