What percentage of new businesses fail?

B

brian.mobile

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Just wondering, from your own personal experience, what percentage of businesses fail? I reckon it's about 60%!

BM
 
Re: What percentage of new business fails?

yes it is, but most of these had no market research, no business plan - just a dream!
 
Re: What percentage of new business fails?

As ever a quick comes up with some relevant information. Seems like an obvious place to start. The 2001 DETE report that crops up there claims that 30-40% of small businesses fail within 5 years.
 
Read an interesting article last night...it appears that companies like Hewlett Packard, Sony, 3M had no market reaseach and no business plan when they started...their only strategy was to build the company; they had no magic product.
 
Hi
It used to be that 80% of new businesses fail in the first 3years. A lot of that I think can be people who had a dream but no long-term plan as to where the Company was going.

I would say on the 'up side' that a smart person, with a good idea can make it work & if you're thinking of setting up your own business, go for it!! I did & haven't regretted it. Why bother working for the 'fat cats' when you can have some of the 'cream' for yourself!

ThereseM
 
The failure rate for a franchised business is much lower than that so maybe that is the way to go.
 
There is a huge variation between sectors, for example restaurants are notoriously prone to failure within the first few years.
Franchises are the safest bet but you are still not at the top of the chain and have most of the downsides.
The one positive thing I would say is that it’s not the end of the world if a business does fail. You will learn more in a year in a failing business than you can in ten years working for someone else. It could be the schooling you need to succeed the next time.
 
woods said:
The failure rate for a franchised business is much lower than that so maybe that is the way to go.
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Are you actually working for yourself, some of the stuff I've heard about practices by franchise licensees would make me think not.
 
owenm said:
Are you actually working for yourself, some of the stuff I've heard about practices by franchise licensees would make me think not.
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I have in the past worked on both sides. I have been a franchisee and a franchiser. I currently fall in to neither catagory.
 
brian.mobile said:
Just wondering, from your own personal experience, what percentage of businesses fail? I reckon it's about 60%!

BM
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47% of Irish business' fail within the first 5 years.
 
ClubMan said:
Icarus - can you post a link to the source of that stat please? Thanks.
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It's from todays edition of the Sunday Times business section in an article about Irish entrepenuers trying to make it through the difficult first year. I've just had a look online but their website doesn't seem to show any of the features that are from the Irish edition.
 
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