For years and years, whenever I’d mention to someone that I’d like to start a business, I’d get quoted the infamous “80% of all businesses perish within 5 years” parable.
Well, that piece of “wisdom” never quite sat well with me… and now it seems it’s actually an urban myth!
…approximately half of all new businesses were still operating after four years. Headd and other researchers have had similar findings. “To my knowledge, none of them nor myself have run into a substantiated finding [showing] 9 out of 10 fail the first year,” Headd says.
So for some reason this urban myth has been passed on, year after year, person to person, discouraging people from entrepreneurship. The article sums it up quite nicely:
At any rate, it seems clear that some people simply want to believe that entrepreneurship is harder than it really is.
If I were a cynic I’d say that “The Man” has passed on this “wisdom” in order to stifle competition and keep the worker bees content… But I’m no cynic ;-) so I think this urban legend is probably just an expression of peoples’ fear of uncertainty.
So there you go folks. Yes, it’s not easy to start something, but it’s also not as hard as you think. My advice is then to get out there and just do it!