Statistics for Small Business Success and Failures 2024
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Length: approx. 1 min. 20 sec.
The Bureau of Labor Statistics and the United States Small Business Administration provides data that is helpful for small businesses. Small business statistics not only provide insight on the dos and don'ts for a business, but they also provide “vital information for those looking to start and run a business”.
The first half decade of a business is crucial. Nearly “1 in 5 businesses fail within the first year”, however 30% of businesses fail in their second year and 50% fail by their fifth year. The biggest reason small businesses fail is “due to a lack of market demand”. It is important to consider whether there is a market demand for the business you want to start by conducting thorough research. “Running out of capital” is also a prominent reason why businesses fail quickly. Therefore, it’s essential to have ample cash for the first few years you will be in operation.
In addition, 76% of shoppers “check a business’s website before visiting their physical store or location”, indicating that what consumers see online could impact their decision to give a business their money. With this being the case, smart online marketing may be a way for businesses to get consumers through their door.
In an ever volatile market, it can be daunting to keep your business afloat. Studying small business statistics provides helpful insight for starting a business but also maintaining and growing your business. If you need help on understanding your business' numbers, reach out to our experts at XQ CPA. We would love to help you.
Phone: 832-295-3353
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