That Smith

According to a report recently given to the President by the Small Business Administration,

In any given year, about 7 percent of the working age population in the United States is actively engaged in efforts to start a business.

This 7% equates to approximately 10.2 million Americans that have the desire to start a new business. These individuals, if successful will join the 10.1 million Americans already self employed. [1]

Statistics provided by the SBA show that of these new businesses, only 66% are likely to survive their first two years. Only 44% will survive four years. Reasons for small business failures may vary, but a few common reasons follow.

• Why Small Businesses Fail
• Why Do Many Small Businesses Fail?
• The Seven Pitfalls of Business Failure and How to Avoid Them

Essentially, the primary reasons businesses fail include: starting for the wrong reason, poor or inadequate planning, ineffective promotion, lack of capital, overspending, poor choice of location, or lack of experience.

Depending on your business, you may be able to start one with little or no investment, so fear of failure should never be an obstacle when beginning. Before you take the plunge however, make sure you are thoroughly prepared. Remember: Anything worth doing is worth doing well.