90% of firms are out of business by year 10. Some Internet mythology report a shortened period to year 5 — that means 90% of small business startups are out of business at the end of five years!!! Which is incredibly sad…. The biggest drop comes in the first 5 years, when most startups go belly up.
A recent study* concluded that cumulatively 64.2% of new business failed in a 10-year period -- if failure was measured as discontinuance of ownership -- but only 5.3% actually filed for bankruptcy during a decade, which means people simply gave up. |