Start-Ups – 13 takeaways
- Around 90% of new startups fail.
- In 2020, 65% of UK adults want to start their own business.
- In 2019, Berlin was ranked the best city in the world for startups.
- In 2020, there were about 475 unicorn companies.
- One-third of small businesses in the US started with less than $5,000.
1. January 2020 saw the highest number of searches for ‘how to start a business’
This is the highest search volume since UK search records begain in 2004, in real terms this was over 18,000 a month!
(Source: Micro Biz Mag)
2. In 2020, 65% of adults in Britain wanted to start their own business
According to a survey of 1,000 UK adults carried out in January 2020 65% of adults wanted to start their own business, whilst 21% did not and 14% were unsure.
(Source: Micro Biz Mag)
3. Startup statistics forecast that 43% of their workforce is likely to be freelance by the end of 2020.
More people than ever before are going freelance, particularly in the USA. Major impacting factors include new technology and remote working. This presents new opportunities – and challenges – to people and organisations.
(Source: Fresh Books)
4. Over 50% of UK startups report that a lack of funding is a barrier to starting a business.
The data was collected from over 3,000 people relating to startup statistics Additional key metrics from the same data included knowledge – 17.7%, confidence – 9.4%, legal – 5.3%, ideas – 4.4%, time – 3.2% and customers – 2.9%.
(Source: Startups)
5. 52% of US small business owners report they expect Venture Capital to be their next source of funding.
Capital can be vital when starting a new venture. More than 65% of small businesses in the US believe they don’t have the budget to get their start-up running.
(Source: Hustle Life)
6. Over 670,000 new companies were incorporated in the UK by the end of the 2019 tax year.
Entrepreneurs have remained confident, despite challenges like Brexit. Although market factors outside of their control, including the pandemic, have clearly had an effect on trading, entrepreneurs are clearly still innovating and starting new ventures.
(Source: gov.uk)
7. About 90% of all new start-ups fail.
Whilst failure rates from different sources vary, in the long run very few start-ups survive. Some 20% of new businesses fail within the first 12 months.
(Source: Failory)
8. 82% of businesses that failed in 2018 were due to cashflow.
It’s not uncommon for a business to fail with a full order book. Planning and positioning for scale is less an art and more a science. Timing is everything.
9. 42% of businesses that failed in 2018 highlighted lack of market need as a factor.
Building the next big thing can often be a inward facing journey for many start-ups. Product market fit – and need – is crucial in uncovering innovation, developing and launching winning products and services.
(Source: Entrepreneur Europe)
10. In 2018 one third of small business owners in the US started with less than $5000 capital.
A further 58% started with less than $25,000. Whilst 65% of those surveyed through they might not have enough capital, clearly with external venture capital being hard to secure founders are finding way to be more creative with less.
(Source: Small Business Trends)
11. Less than 6% of all new US start-ups were funded by venture capital.
Given how competitive the market is at the moment only very few start-ups are successful in securing venture capital.
(Source: Medium)
12. In 2018, 64% of European founders said they would choose Europe over the US if they started again.
It appears that founders consider that talent, value for money and ROI to be major strengths in the EU over the US.
(Source: Startup Heatmap Europe)
13. There are only 7 women entrepreneurs for every 10 male entrepreneurs globally in 2019.
According to start-up statistics 14.8% of European startup founders in 2016 were women.
(Source: Global Entrepreneurship Monitor & European Startup Monitor)