Starting and running a small business has always been a risky value proposition. The Small Business Administration tells us that 60 percent of them won’t make it past their first birthday.
Historically, that failure rate was eclipsed by the sheer number of new business starts each year. More businesses opened than closed — until 2008. That year, for the first time in more than 30 years, small-to-medium size business (SMB) closings outnumbered openings — and by a big margin. That year, the country was left with a deficit of roughly 100,000 small businesses. And that trend line really hasn’t reversed course all that much since then.¹