Small Business Survival Is Getting Better

The SBA has a interesting research paper with the title “Volatility and Asymmetry of Small Firm Growth Rates Over Increasing Time Frames” – a key finding is:

Survival rates over the five-year period were similar for the different size classes, except the smallest. The survival rate for establishments with 4–7 employees was 75.3 percent; this rate slowly rose to 84.2 percent for the 512–1,023 size class. Even small size classes had relatively high five year survival rates, 61.4 percent for one-person establishments and 70.1 percent establishments with two to three persons.

This is further good news for small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Personal business, as it indicates a much better entrepreneurial infrastructure than before.

Before every politician claims to be responsible for this, let me say that in my opinion it is the advances in internet technology and better educational tools – often also powered by the internet – that made this possible.

Hat-tip to Small Biz Labs

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