There are many popular small business and startup statistics flying all over the ‘virtual atmosphere’. Probably the most visible is the one stating that 90% of startups fail. Popular as it may be, this figure could be debatable. For one, a study conducted by Cambridge Associates indicates that 60% is a more accurate figure.
The global investment firm conducted this study to track the performance of 27,259 venture-backed startups between 1990 and 2010. The oft-quoted statistics may have scared off many intending entrepreneurs, but some other great statistics should stoke that entrepreneurial fire. While this list is not exhaustive, it should provide sufficient encouragement.
Increased Rate of New Startups
According to statistics, the rate of new startup entrepreneurs grew by 15% between 2015 and 2017. The Kauffman Index of Growth Entrepreneurship notes that this indicates business growth in the country and it’s mainly due to an increasing rate of female entrepreneurship.
Forty Percent of Small Businesses are Profitable
The first four years of a business seem to be the toughest. However, statistics from various sources, including Small Business Trends, indicate that 40% of small businesses are profitable while 30% break even. Another 30% are still losing money and 9% may survive 10 years of operations.
Holistically speaking, this is far from being a doom and gloom picture considering that at least 70% remain above board.
Sixty-Nine Percent of U.S. Entrepreneurs Start Their Businesses from Home
While Silicon Valley may seem like the perfect place to start and run a startup, a study that examined the Total Entrepreneurial Activity (TEA) across industry sectors in the United States indicates that 69% of entrepreneurs started their businesses from home. The result of this study was published in the 2012 Global Entrepreneurship Monitor.
Apparently, overwhelming statistics exist out there encouraging people to start investing in their visions. How can you find them? One way is through an online business forum joined by like-minded folks looking to move to the next level in business.