The Real Cost Of Small Business Failure – Part One

Cost of Small Business Failure

The Enormous Cost Of Small Business Failure – Neither Acknowledged Nor Addressed

Here is totally new thinking regarding the nature of small business, especially as it regards the cost of failure. It’s not an attack on traditional thinking found within government agencies or schools. Neither is it an attack on other accepted entrepreneurial authorities.  Instead, this is a comment on the more personal aspects of entrepreneurship; the real heart of the issue that goes thoroughly unattended and addressed.

It’s a new perspective on solving a difficult problem. Old thinking about entrepreneurship and small business isn’t working and hasn’t worked for decades. It’s time to approach the problem of small business failure from a totally different position. It’s time to look at the real cost of failure in terms of the personal and financial devastation it causes on many levels. Perhaps knowledge of the suffering resulting from small business failure will lead to more new thinking.

Small Business And Statistics

Let’s begin our analysis with an often stated, yet unfortunately true, piece of information.  According to government statistics, one-half of all new businesses will fail before they are five years old.  Most of us interested in entrepreneurship have heard that statement many times. In fact, we hear it so often that we become immune to its implications. And even for those who have experienced the bruises of entrepreneurship, the true meaning of that statistic doesn’t register until the actual numbers are considered.  The magnitude of the problem has impacted my thinking for a long time. Eventually, the need to find a way for entrepreneurs to win more and suffer less became essential.  That mission is the core of this article as well as the core of a program, a system, designed to reduce small business failure.

Percentages are one way of expressing statistics. But those same statistics take on greater meaning when we consider the actual numbers they represent.  For example, if we state, and accurately so, that 5% of the total number of businesses in existence are start-ups, that percentage doesn’t sound particularly significant.  But, to see that same 5% as 700,000 unique entities takes on new meaning. It’s a huge number by any standard.  (Note:  There are somewhere between 12 and 14 million total businesses in North America, ranging from General Motors to Pete’s Ice Cream truck and including every demographic of age, race, or economics.  The percentages, the numbers, and the facts touch every entrepreneur and every free enterprise. No demographic escapes the reality of small business failure.)

Small Business Is More About People Than We Ever Think About – Unless We’re The Owner Or Employee

The goal here is to stop thinking about small businesses as inert objects and see the people behind and within them. The goal is to recognize the need find a way to help these brave individuals succeed more often than they do in our current framework of entrepreneurship. The real cost of human suffering resulting from small business failure can be dealt with.

A lifetime of study, my lifetime from age six watching family members, has been poured into what real traits turn into either entrepreneurial success or failure. As a result, a system, a process was created to help prospective entrepreneurs find a better way of choosing a path to self-employment: The Focus Program for Emerging Entrepreneurs. Part Two follows.