We are witnessing new-age entrepreneurs who are starting businesses at very young ages. Millennials are not just more probable to start a new business and take risks, but they also do it at a younger age. While the average age of baby boomers starting their own business was 35 years, the average age for millennials is dipping below 27 years of age.
Millennials are more driven and more entrepreneurial. However, you might be surprised to learn that about half of the new businesses fail within the first five years of inception. Some of the prime reasons why new businesses fail are a lack of focus, poor mentorship and decision making. Indeed, many businesses which fail feature teams or individuals who lack motivation, commitment or passion.
There could also suffer from insufficient domain-specific business knowledge, or an unwillingness to listen and learn from industry experts. While the inability to manage resources and raise funds is one of the prime factors, ironically, so is raising too much money too soon.
The geography of businesses
You would be surprised to learn how much the geographic location within a country can also affect the success of a new business. For instance, while the city of Newry and Mourne in Northern Ireland has the lowest 5-year survival rate, at 37%. In contrast, the city of Aberdeen in Northern Ireland has the highest with 54%. Amazingly, these cities are only an hour’s flight away, and they are far from the only such example.
Consider the four major cities of the Midlands; Nottingham, Coventry, Leister, and Birmingham. The first three cities combined have a much lower number of businesses than Birmingham. Is Birmingham the best business location?
The infographic from our friends at Total Processing will provide you with some analysis of active businesses in the UK. You can learn about the number of new enterprises and the number of business closures. Data is geographically segregated overview and graph to quickly process this information in an easy manner. Whilst this infographic focuses on the UK, you can extrapolate similar lessons to any country or region in the world.