Startup Statistics

Every year thousands of ambitious entrepreneurs open new enterprises. These businessmen and startups feel confident and full of hope. Unfortunately, the statistics of small businesses shows that after four years more than half of them will disappear.

Except for the frequency of closure of small businesses, many small businesses are going through this difficult and critical period and are becoming successful and prosperous.

Money is not a key component of small business success.

One third of small businesses start their business with less than $5000 and 58% with less than $25000. (In addition, 65% admitted that they are not quite sure if they have enough money to start their own business).

The most popular methods of small business financing:

• Personal funds 77%;
• Bank credit 34%;
• Borrowing from family / friends 16%;
• Other financing 11%;
• Donations from family / friends 9%;
• Online lending 4%;
• Angel investor 3%;
• Venture capital 3%;
• Crowdfunding 2%.

Reason to start a business:

• Ready to be my own boss: 26%;
• Wanted to do what you like: 23%;
• Opportunity to do something you like: 19%;
• with the work of corporations: 12%;
• Fired or outsourced: 6%;
• Other: 14%;

10 main reasons for failure of small business:

• No need in the market: 42%;
• Out of money: 29%;
• Incorrect team of specialists: 23%;
• Failed: 19%;
• Prices: 18%;
• User unfriendly product: 17%;
• Product without Business Model: 17%;
• Poor Marketing: 14%;
• Customer Ignoring: 14%;
• Incorrect product: 13%;
• bad marketing: 14%;
• Customer Ignoring: 14%;
I
• ncorrect Product: 13%

Having a business partner (two founders, not one) significantly increases your chances of success, as you will raise 30% more money, get almost 3 times the growth of users, and 19% less likely to scale prematurely.

So if you want to start your own business, do not let the above statistics push you away. After all, you have a better chance of success if you fail than if you've never tried. Now that you are equipped with the knowledge from the above statistics, it is easier for you to understand how to start a business to be successful. You need an experienced and cohesive team of specialists, a reliable business partner and, of course, your brilliant idea for business!