Question of the Day: What percent of businesses fail within the first five years?

|
Dec 16, 2020
|
Question of the Day, Career, Employment, Entrepreneurship

Hat tip to the group in the NGPF Virtual PD: 5 Career Resources in 50 Minutes who came up with this question.

Answer: About 50%

Questions: 

  1. Do you know anyone who has started a business? 
  2. What do you think are the reasons that businesses fail? 
    1. Resource to help answer that question
  3. Does research like this encourage or discourage you from wanting to start a business? 

Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (SBA): 

About two-thirds of businesses with employees survive at least 2 years and about half survive at least 5 years. As one would expect, after the first
few relatively volatile years, survival rates flatten out. (Source: Bureau of Labor Statistics, Business Employment Dynamics.)

----------------------

Enjoy your holiday break! Questions of the Day brought to you by Mason and Tim will resume on January 3rd. 

 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.