Real Rates of Business Survival
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Dispelling a myth
There are some statistics that are commonly banded around in business circles, saying 8 out of 10 businesses fail within the first year and the majority of the survivors won’t make it to year 5.
But where did this come from? And is it even true?
This is what we set out to discover for Fleximize, a company that provides alternative financing for small businesses and startups. The client was very much on the side of small businesses, and wanted to challenge the notion that such a high proportion of them fail.
It turns out, in the UK, the exact opposite is true – almost 8 out of 10 (83%) of businesses survive the first year. And half of them (49%) are still going 5 years later. And with every year a business stays in operation, its chances of survival actually increase.
So we felt it was time to lay this unhelpful myth to rest, which allowed the client to champion and support small business growth.
