Five years ago, I started Tribal Impact Ltd. I remember the day well. We had just moved into the house we built, I’d just left SAP and I had a 2-month-old baby sleeping across my lap as I hit ‘submit’ on the Companies House website. It was a crazy time. What on earth was I thinking?
Truth be told, I didn’t know any different. All I knew was that this new adventure gave me butterflies in my stomach – a healthy mix of nerves, excitement and slight panic. I still get them. But this whole adventure nearly didn’t happen because I read the statistics.
- 20% of new businesses will close their doors within just 12 months (Telegraph, 2019)
- 60 % of new businesses will go-under within three years (Telegraph, 2019)
- Fewer than half of UK start-ups make it beyond 5 years (GOV.UK, 2019)
- Only 40% of start-ups actually turn a profit.
Honestly, I wanted to give up before I’d even started. It makes for sad reading! But, research also shows us that 64% of the UK workforce wants to set up their own business and whilst the current pandemic may put people off, some believe it could be the perfect time to take the leap.
I figured, given that against the odds our tribe has passed our 5-year birthday, it was time to share some positive statistics about start-ups.
Statistics that might help other entrepreneurs see through the doom and gloom and follow their dream. Because when you do follow your dream, it’s the best feeling ever.
- 672,890 start-ups were founded in the UK alone during the 2018/2019 tax year (that’s 1,843.5 per day or 76.8 per hour!)
- 62% of US billionaires are self-made (if you’re driven my money!)
- 82% of business failures are due to poor cash management (know your numbers)
- The ratio of men entrepreneurs to women entrepreneurs in 2019 is 10:7
- Only 25% of entrepreneurs indicated that the desire to make money is a major motivation (most do it because they’re passionate about their topic)
- Mentored start-ups grow 3.5x faster and raise 7x more money (find yourself someone who can mentor you through the early phase)
- 60% of people who start small businesses are between the ages of 40 and 60 (Er, yes. Tick)
- There are 582 million entrepreneurs in the world (you aren’t alone)
- The average number of businesses started by an entrepreneur is two (you better get going!)
- 64% of small businesses started with less than $10,000
- 66% of small businesses will outsource to other business (You don’t have to do everything yourself. Outsource the bits you don’t like or aren’t good at)
- On the happiness scale of 1-10, 53% of small business owners were between a 9 and 10
- Founders need 2 to 3x longer than they expect to validate a business model (don’t expect to ‘build Rome in a day’)
- Companies that presell their products and services close 40 to 50% more leads and retain 80 to 90% more customers. (Selling what you may not have finished isn’t so bad!)
- 69% of American entrepreneurs their businesses at home
- , 30 percent break even and 30 percent are continually losing money.
- Owners of small start-ups report that managing their business is four times more stressful than raising children (Hmm, not sure I agree with that!)
- 60% had at least one child when they launched their first business and 44% had two or more children. (Er, yes. Tick again)
- 75% of entrepreneurs had worked as employees at other companies for more than 6 years before launching their own companies (took me a bit longer)
- 82% of start-ups are self-funded, 41% are from loans and 24% from friends and family. (Entrepreneur)
To finish, I’ll leave you with a quote rather than a statistic. Someone once said this to me, and it’s stuck ever since.