Without taking into account the obvious effects that the global economic downturn has had on entrepreneurialism, employment, and corporate growth, the business world is a competitive market to operate in successfully.
Remarkably, business failure statistics in Canada show that approximately 96-percent of small businesses that enter the marketplace survive for one full year, 85-percent survive for three years, and 70-percent survive for five years. The U.S. Small Business Association notes that 50-percent of all businesses fail within their first year.
There is no shortage of posts, articles, and books that offer great insight into the world of business failure and how a budding entrepreneur can hopefully sidestep the seemingly predetermined path that so many other start-ups before them have taken.
According to Statistics Canada, and many business-minded individuals, most start-ups fail because of mismanagement, in the general, financial, and marketing sense. It was also noted that almost half of the firms in Canada that go bankrupt do so primarily because of their own missteps, rather than external forces (although this assumption may not hold true during the current economic environment). (more…)