Media Release
Lies, damn lies and business statistics
Sydney: 3 April 2009 - For immediate release
When setting up our latest business who would have guessed the biggest hurdle would be an
urban myth?
This is
the oft-quoted statistic “80% of businesses fail within three years” or its numerous
variations. (The best I have heard so far is 90% of businesses fail in the first year and the
remainder in the second year).
What is common throughout all the variations is the underlying nuance –‘if you start a business,
most likely you will fail, so why even bother to try’.
It is not true. The ‘statistics’ are a total fabrication.
According to the Australian Bureau of Statistics only 14.6% of businesses close in their first year.
That means more than 85% survive.
In fact, a business started today has about a 50% chance of being around in five years time. Pretty
solid numbers, don’t you think? However, what about the other 50% … surely they are considered
failures?
Well, no. Many businesses merge or are acquired by other businesses. In other cases, an owner
retires or moves overseas or interstate. Over the years, I have even met a few business people who
have closed their companies when seduced back to the corporate world.
…2
This urban myth is malicious and destructive.
It has the potential to seep into the psyche of people considering starting their own business,
raising doubts as to their chances of success.
Disinformation can be devastating. People starting a new business have enough hurdles to jump
over without this nonsense clogging their thinking.
Matthew Abrahams is founder of Business Switch, a company that helps people starting new
businesses to get ‘up and running’ in just two weeks.
For further information:
Matthew Abrahams, Managing Director
m.abrahams@business-switch.com.au / phone 02 9818 6909 / mobile 0414 912 788
About
Launched this year, Business Switch strips the time, cost and nonsense out of starting a business.
Business founders no longer need to spend months handling the chore of business registration, IT,
web design, graphics, print, marketing, finance, insurance, government rules and regulations. By
offering one point of contact, fixed prices, expert advice and a two week timeline for everything
to be completed, Business Switch ensures businesses are quickly and professionally set-up, so
owners can earn income faster.
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