Start a Business? Buy a Business? Or Get a New Job?
As I read through most business articles, I am struck with all of the reporting about venture capital, startups, and other leaders that aren’t making significant positive strides toward increasing jobs.
As I think about our economies I find it important for all of us to keep the following data at our center to make sure we stay focused on what’s really moving the ball especially for our region and area.
As we continue to focus our efforts on startups we mustn’t forget the existing businesses that are successful.
Statistics on failures of startups over a five year period are as high as 90%. Statistics for the purchase of established businesses have less than 15% failure rate over the same period of time. (Based upon SBA data.)
As we focus on increasing jobs and maintaining low unemployment and underemployment rates – we can’t forget the following:
Nearly 80% of net new jobs are created by established businesses with 250 employees or less vs startups and large corporate companies with more than 250 employees. (Based upon BLS data.)
It seems to me that society should lift up existing small businesses instead of Fortune 2000 companies and start-ups without revenue!