Startup Failure Rates (Very Sobering)
Interesting data from Harvard Business School...
Most companies fail. It's an unsettling fact for bright-eyed entrepreneurs, but old news to start-up veterans.
But here's the good news: Experienced entrepreneurs know that running a company that eventually fails can actually help a career, but only if the executives are willing to view failure as a potential for improvement.
The statistics are disheartening no matter how an entrepreneur defines failure:
- If failure means liquidating all assets, with investors losing most or all the money they put into the company, then the failure rate for start-ups is 30 to 40 percent
- If failure refers to failing to see the projected return on investment, then the failure rate is 70 to 80 percent
- If failure is defined as declaring a projection and then falling short of meeting it, then the failure rate is a whopping 90 to 95 percent
- March 8, 2011
- Introduction to Entrepreneurship
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