Sorry, but that’s one of those myths you hear about that is just not true or is a distortion of the truth.
It’s actually rare for a business to go bankrupt. What usually happens to those that fail is that the person running it ends up working longer hours for less than they did with they worked for someone else and they give up and go back to working for someone else. That is what creates the 50% fail myth.
The truth is many people who start businesses have misconceptions that doom them. The primary one being that the boss sits on their butt and lets everyone else work! The people who start businesses that think that are the ones who give up and go back to work for someone else.
While there are a number of small businesses in a broad range of industries that perform well and are continuously profitable, 20% of small businesses fail in the first year, 50% go belly up after five years, and only 33% make it to 10 years or longer, according to the Small Business Administration ( SBA )
Not great at all.