80% Of Small Businesses Fail In 18 Months?
Bloomberg has reported 8 out of 10 entrepreneurs who start businesses fail within the first 18 months. A whopping 80% crash and burn. There is one problem with this statistic. It is not true.
Here are just a few of the many reports that show that the Bloomberg statistic is not even close to reality.
25-30% of venture-backed start-ups fail completely. The National Venture Capital Association
36% of new businesses fail in two years. – Statisticbrain.com
38.8 – 45.1% new businesses fail in 4 years. – U.S. Bureau of Labor Statistics
51.2% new businesses fail in 5 years – U.S. Census Data
* Headd, B. Redefining Business Success: Distinguishing Between Closure and Failure, 2002 # Shane, S. Startup Failure Rates – The Real Numbers, 2008 Phillips & Kirchhoff. Small Business: Critical Perspectives 1989
Here is what the Washington Post has to say about the fake statistic that 9 out of 10 businesses fail.
“As far as we can tell, there is no statistical basis for the assertion that nine out of 10 businesses fail. It appears to be one of those nonsense facts that people repeat without thinking too clearly about it. ” – Washingtonpost.com