Think that starting up a new business is a piece of cake? Although opening up a business might seem like an ingenious idea, it is important to note however, that there is only a nine per cent chance of a small business (with under 20 employees) surviving its first 10 years, according to Dunn & Bradstreet, an international consumer trends company based in the United States.

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 A huge reason for so many failed small businesses is that many decide to open a business without any prior experience or knowledge in running a business. The most high-risk small business ventures are independent restaurants, retail stores, and direct sales (e.g. Pampered Chef, Mary Kay, Avon.)

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Only about 40 per cent of small businesses are profitable, while 30 per cent break even, and the final 30 per cent continuously lose money.

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 Some reasons why businesses fail are that owners might be skilled at their craft but not at running a business, lack of consumer interest, tough competition, poor management, and high initial start-up costs.

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Shawn McGuire is a Montreal-born and now Hamilton-based journalist who enjoys covering news in the Steel City. He’s a sports fan, vegan, music enthusiast, & vinyl record lover.

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