News for Entrepreneurs With the Great Recession now a distant memory, many innovators – even those with good ideas and creative solutions – are hesitant to dive into the waters of business for fear of failure. Many naysayers suggest that even without this tragic economic crisis, most new businesses fail. In fact, Forbes suggests the number is close to 90% as of January 2015.What differentiates the 90% from the 10% is not impossible to determine, and you can gauge the number of businesses that fail by studying the successful ones. And, thankfully, a lot has changed economically for the United States in the two years since Forbes' study.
There's a lot of good news on the horizon for hopeful entrepreneurs, and there's plenty of reason to think they could be in that golden 10% and the 10% could be expanding. If you are planning to start a business, 2019 is a good year to get started in the employee data market. What makes a business successful According to the Bureau of Labor Statistics, the numbers for 2018 looked solid, and that bodes well for 2019.About 80% of companies that employ staff survive their first year. About 66% of businesses with employees survive the second year of operation. About 50% of companies manage five years of activity while employing staff.
About 30% of companies see 10 years in business. About 20% of small and medium businesses fail in their first year and 50% of small businesses fail in their fifth year. So, yes, the odds of surviving that tenth anniversary are considerably lower than surviving the first year in business. However, many long-term businesses, and with the growth of the current economy, even more businesses will do so in the years to come. The change that many people expect in the coming months is an increase in survival statistics for new businesses.