Entrepreneurs & Start-Ups- Create a need for their Service or Product, bring it to Market and Strive to Succeed.
Who Are They?
Entrepreneurs are passionate about their business, they Innovate, Create services and Products which establish a presence for them in the marketplace and attracts customers. Then Change is here, Now What?
Plan, Manage Your Risk. Change = Storm – Plan for It.
Interesting statistics on Start-up companies – Where they come from, Choices they make, Age Group, Education and so on.
Data below has been gathered from different sources:
General Start-up Statistics
- 69% of U.S. entrepreneurs start their businesses at home.
- According to the National Association of Small Business’s 2017 Economic Report, the majority of small businesses surveyed are LLCs (35%) followed by S-corporations (33%), corporations (19%), sole proprietorships (12%), and partnerships (2%).
Gender: 75% Male, 25% Female.
Age Range:
- 18 to 29 4%
- 30 to 49 39%
- 50 to 69- 53%
- 70+ 4%
Reason for starting business
- Ready to be own boss: 26%
- Wanted to pursue passion: 23%
- The opportunity presented itself: 19%
- Dissatisfied with corporate America: 12%
- Laid off or outsourced: 6%
- Not ready to retire: 6%
- Other: 5%
- Life event such as divorce, death, etc.: 3%
Ethnicity:
White/Caucasian – 71%
Hispanic/Latino – 6%
Black/African American – 7%
Asian/Pacific Islander – 11%
Other – 5%
82% of Successful Business Owners did not doubt they possessed the skills and expertise to run the show.
STARTUP FAILURE RATE STATISTICS
According to the Bureau of Labor Statistics’ Business Employment Dynamics, here’s what the survival rate looks like:
- About 80% of businesses with employees will survive their first year in business. (The most recent data shows that, of the small businesses that opened in March 2016, 79.8% made it to March 2017.)
- About 70% of businesses with employees will survive their second year in business. (The recent data shows that of the small businesses that opened in March of 2015, 69.2% made it to March of 2017.)
- About 50% of businesses with employees will survive their fifth year in business. (Data shows that of the small businesses that opened in March of 2012, 50.2% made it to March of 2017.)
- About 30% of businesses will survive their 10th year in business. (The most recent data shows that of the small businesses that opened in March of 2007, 33% made it to March of 2017.)
The stat you need is that about 20% of small businesses fail in their first year, and 50% of small businesses fail in their fifth year. WHY?
Top 10 Reasons for Failure:
A CBInsights analysis of 101 startups polls the reasons why those businesses failed, according to their founders. Here were the top results:
- 42% of small businesses fail because there’s no market need for their services or products.
- 29% failed because they ran out of cash.
- 23% failed because they didn’t have the right team running the business.
- 19% were outcompeted.
- 18% failed because of pricing and cost issues.
- 17% failed because of a poor product offering.
- 17% failed because they lacked a business model.
- 14% failed because of poor marketing.
- 14% failed because they ignored their customers.
All Above Reasons for Failure are related to the 4P’s:
Product/Service, Place, Promotion, Price
Create Strategies that deal with the 4P’s, address risks, deal with the unexpected and prepare you for the challenges that come your way.
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