Small businesses who have just started out seem to appear and disappear around us all the time, this is because they are. Although we will never encounter the vast majority of new businesses, they are being founded at an astonishing rate. In fact, 543 thousand new businesses are registered every month.
Of these new businesses, a little over half are home-based and it is these ones that often go unnoticed. Within 5 years, half of these businesses will have failed, in the majority of cases because they cannot sustain the necessary cashflow.
Starting a new business is difficult and no matter how good your instincts, you will be facing odds which are stacked against you. However, it is worth remembering that the majority of businesses that ultimately fail do so because they do not adequately research and prepare beforehand.
There are currently 28 million small businesses in the United States. In addition, there are 22 million self-employed individuals who don’t pay any other staff, these are known as non-employers.
Small businesses are subject to the same market forces as larger businesses and consequently technology is playing an increasingly important role in terms of both the nature of new businesses, and the effect on jobs. An increasing number of companies are turning to groups like csbgroup.com to help them set up their base of operations on countries with more generous tax regimes.
While starting your own business is very challenging, it can also be an incredibly rewarding experience, however the average amount of financial capital needed to start a new business is only $10,000, much lower than many people perceive it to be.
The infographic below highlights many of the most surprising statistics about small businesses. Anyone considering starting up their own business should familiarise themselves with the reality of the situation.