Small Business Investing

Managing a Small Business

Why is it difficult to see the survivability rates for new businesses?

It is difficult to calculate the survivability rates for new businesses because many statistics merely use the raw number of new companies started in a year and the number of companies that failed during that year to compute the rate. A more accurate method to determine the survival rate would be to track all companies—or a statistically significant representative sample of all new companies—and ask if they survived for subsequent years, and note the distribution of these results.


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