1 in 5 companies founded in 2021 closed within the year—a story all too familiar in the US

Posted under: MSME
Date: 2023-09-20
1 in 5 companies founded in 2021 closed within the year—a story all too familiar in the US

Whether a startup is successful in its first year depends on a variety of factors—from industry type and location to funding and money management strategies. PlanPros investigated what it takes for a business to make it through its first year—a milestone that 1 in 5 companies don't achieve. Entrepreneurship is a core tenet of American culture. As many as 55% of Americans have started at least one business in their lifetime, according to a 2019 survey by the Global Entrepreneurship Monitor consortium at Babson College. In fact, there are over 33 million small businesses—which have fewer than 500 employees—in operation today according to estimates from the Small Business Administration. However, the Bureau of Labor Statistics reports that since 1994, about 20% of new businesses have not survived their first year. The success of a small business affects more than just the business owners' livelihood.

Read more at: roanoke.com