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
- Low Sales
- Poor Location
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!