by Andrew Smith on 14/02/07 at 4:57 pm
Everyone knows that 96% of small businesses fail within 10 years, and that stat can probably be traced back to Michael Gerber’s very successful book, “The E-myth”. Of course, 76% of all statistics are made up on the spot, but for some reason we blindly believe whatever we read. Gerber wants to paint a grim picture of the doom facing business owners so that more people will buy his book to find out how things are supposed to be done.
On the other side of the fence sits FNB, who are launching a new “product” (which is bank-speak for brochure of bank charges with a fancy sounding name at the top) aimed at small business owners. Naturally they want hoards of people to start businesses, get in to lots of debt, and become their slaves for life, so they are telling everyone that the success rate for small businesses is not so bad (apparently 40% make it), and that everyone else has got it wrong. Mmmmm, of course they have.
Andrew Smith is the pedantic systems guy behind Live Alchemy, a SA e-commerce company. Andrew writes for Ideate in an attempt to make the world a more efficient place. View more articles by Andrew Smith.