Avoid small business failure with adequate knowledge. Experts give 3 key factors to small business failure. Funding plays a huge part.
There are three primary reasons that small businesses fail, according to Dr. Scott Shane, professor of economics and entrepreneurial studies at Case Western Reserve University. He believes that small business failure is determined by age, size and industry, in that exact order. Adequate funding from Silver Rock Funding can help you avoid all those hindrances.
So lets tackle the first factor. According to Forbes, 80% of businesses crash and boring within their first 18 months. Other experts challenge this statistic and claim that it is unfounded. The Small Business Administration says that 66 percent of businesses make it to two years. The connection here is that the longer that you stay in business, not only do you prove yourself to consumers, but you learn what works or does not. The top three reasons businesses do not endure is an absence of market need, insufficient funding, and inadequate staff.
One major identifying factor for failure is your industry. Statistics show that some industries are more prone to small business failure due to funding. For example, Constructions businesses tend to not last as long due to funding struggles. Only 36% of new construction companies are able to press through funding challenges. Could construction company loans make a difference? Startup companies in health and education have a 55% survival rate. Businesses in dental, legal services, and accounting tend to be more financially successful.
In 2016, our trusted lenders have dispersed more than $3 million to entrepreneurs. Any business can avoid small business failure with the right amount of funding. Silver Rock Funding has millions of dollars to lend to small businesses. Fortunately, overall, the chances of a small business failing in recent years is far less than it was in 1980. This may be due to the access many entrepreneurs have to both knowledge and funding. You can complete the application free of charge on our website. A funding manager will work with you to choose a fitting funding option.