Risk of Business Failure
According the Wall Street Journal " the good news [about business failure] is that while statistics suggesting that close to 80% or 90% of businesses fail in their first few years are often mentioned, there is no clear evidence to back them up. The bad news is, they may be true.
Let's start with what we do know. Roughly half of all new businesses with employees survive four years, and even those that shut down aren't necessarily failures. Amy Knaup, a researcher at the Bureau of Labor Statistics found that 66% of the 212,182 employer businesses started in the second quarter of 1998 lasted two years, and 44% survived four years."
This is an important and sobering reflection on the risks in starting any new business, unfortunately the cost of these failures is not as easy to calculate.
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