What percentage of people who start business survive and grow ?

Question

1) Assume they have a family business already running and they start another.
2) Assume they do not have family business and are new to doing business and may or may not have guidance.
3) Assume they worked in management positions and non management positions in any company.
4) Assume that they may or may not have studied business management.

Answer 1

Unfortunately, about 80% of business start-ups fail within two years, and for all kinds of reasons:
1. If you have a SUCCESSFUL family business, let's assume you have some business experience. Then, let's also assume your business plan and marketing plan make sense, you have sufficient start-up capital, you have the vision and energy business ownership requires, and you have a fighting chance.
2, 3 & 4: The key to starting and growing a successful business is:
a) Be sure that there is a market for your product or service
b) Do proper research, check out the competition, do a proper business and marketing plan, try to determine how much financing you'll need for the first two years, and then double it; try
to determine what your sales will be for the first year or 18 months, and then figure it will take twice as long.

I own a business and fwew things are more exhilarating as being totally responsible for your own destiny. But also expect lots of sleepless nights, lots of worries, lots of wondering how to make payroll and how to pay suppliers. But it's all worth it!

Answer 2

My views are:

Business survive and grow simply because of its owner! Why? It is the business intellect of its owner to see, response, attract and select the right opportunities, right partners, right customers, and most importantly adjustmentment toward changes, especially adverse changes in the market.

As such, having a established family business only serve as a platform to jump and nothing else if you does have the skill to develop it further.

Likewise, if situation of work experiences be it managerial or order taker roles, if you do not see things in business perspectives, then all is lost.

People often say that what you learnt from one experience, can often be apply to the future. But is that really true??

I think business is all about people, their needs and wants, hence it's the relationship building process and skill that matters in the end. Experience is just the spice to the dish of EQ.

Answer 3

My gut feeling is that the overall business success rate is roughly 50%. I think maintaining an existing business has a higher success rate. I think experience would help, but not guarantee success. I think schooling may have some correlation, but less so than experience and may be more important in growing a business rather than determining whether it succeeds or not.

For more detail you might try the small business administration.

Answer 4

What an absurd number of questions to ask for such a question!!!

All I can say is location location location. Oh yeah and you have to be a self starter, for real, and at least know what youre doing, in the business. You dont have to have a great business sense to make a success of it, though.

If a business survives 2 years, it is considered a successful business.

Answer 5

The percentages wont give any specific answer to your question. because businesses thrive if:
1. you make a good business plan and therefire know exactly what u r doing.
2. you have perseverance and determination to succeed that touches on creativity to make things work.
3. you work smart and know how to use the right people that works in harmony as a team.

Answer 6

95% of all businesses fail within the first two years. Business management is not a known factor in success - I haven't heard whether having a first business improves the possibility of success in the second business.

Answer 7

A very small percentage on self employed people who start a business survive. The reason? They did not do their research as far as the demand for the business they choose to start. Their compeition, correct pricing, burnout, lack of start up costs.

Answer 8

I feel that people who say that most businesses fail in about 2 years is right for some.But I feel if you want it to last you can do it. And if you put 110 persent in to it will help. If you want it to grow all you have to do is work at it and yes it really depends on the location of where your business is at.