Why Small Businesses Succeed and Fail (Infographic)

Small businesses are the most critical element to the U.S. economy. There are currently approximately 29.6 small businesses in the U.S. and they create 7 out of every 10 new jobs. But on average only 50 percent of small businesses survive more than five years. What factors determine why small businesses succeed and fail? Let’s take a look.

According to a recent infographic from All Business Loans, 49 percent of small business owners attribute their success to more technology investment, 48 percent to better management of cash flow, 44 percent to increased use of mobile devices and 32 percent to better inventory management (stats pulled from Sage Reinvention of Small Business Study 2013). Some of the top factors of small business failure included:

  • Lack of Experience
  • Insufficient Funding
  • Unexpected Growth
  • Competition
  • Low Sales
  • Poor Location
You can see  the complete infographic below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

While many small business owners (myself included) start each day with the intention of growing our business, earning a living and forging our own path in this world, the day-to-day challenges will throw hurdles at us. Knowing how to overcome these hurdles and using smart solutions, like technology (yeah to the 49%!!) will hopefully help us be a part of the 50 percent that survive!

 

 

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About Carolyn Crummey

Carolyn Crummey is a business and technology strategist and the owner of VirTasktic (www.virtasktic.com), an agency dedicated to providing high-level virtual services to small businesses and entrepreneurs. A lover of technology and small business, Carolyn has built a career on the intelligent use of technology to increase business efficiency and productivity, which ultimately leads to greater profitability. Carolyn works closely with her clients to understand their challenges and helps them integrate the best technology solutions into their businesses so they too can enjoy great successes. You can follow Carolyn on Twitter at @CarolynCrummey or @VirTasktic.