Urban Legend
Do 90 percent of start-ups really fail to make it past their first year?
It's a grim little statistic-and persistent, too. You know,the one about nine out of 10 start-ups failing in their first year.You've heard it, or some variation of it, from experts,research firms and databases since day one of your business'sinception. Trouble is, those statistics are more than a bit off themark. Not that starting a business is easy. But it's not quitethe suicide mission it's been made out to be.
According to Brian Headd, an economist in the SBA's Office ofAdvocacy who spearheaded a study on business closures whileworking as a Census Bureau researcher, a business closure does nota failure make. That's an important distinction, says Headd,whose findings will be published in a forthcoming article in thejournal Small Business Economics. "We're focusingso much on survival rates, but it's very possible thesebusinesses had an exit strategy," explains Headd. "Ifsomeone completes that goal, that would be a very positiveoutcome."
Continue reading this article - and everything on Entrepreneur!
Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5.
Entrepreneur Editors' Picks
-
When Her Parents' Restaurant Burned Down, This First-Generation Founder's Hot Sauce Brand Rose From the Ashes to Take on Corporate Giants
-
Not Hitting Your Goals? Here's How to Know If You Should Change Tactics or Strategy.
-
You Can Generate Your Own Viral LinkedIn Post With This Hilarious Tool
-
This Couple Lost Everything When the Housing Market Crashed. But Manifesting 'Magic' Helped Them Launch a Metaphysical Brand With 10 Stores.
-
The Best Software Solutions and Tech Providers in the Franchising Industry
-
This 18-Year-Old Student Wanted a Better Way to Keep Track of His School Work. So He Built an App — and a Business.
