Small Business InvestingManaging 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.