If you are an entrepreneur or are inserted in the entrepreneurial world, you probably know a lot about entrepreneurship, startups and your business area. But have you tested your general knowledge on the subject? We at BGI recently celebrated 11 years of working with startups, and we continue to learn new interesting facts everyday. Even in the most fun ways.
Today we bring you 4 facts that will probably surprise you. We've done this challenge before and this time we came back with new BGI team members - our Sustainability & Food Manager, Cláudia Carocha, and our Projects Community Manager, Beatriz Riscado - to compete against each other and answer questions about entrepreneurship. Who do you think will win this challenge?
In summary, here are 4 facts about entrepreneurship that you need to know:
Fact #1: 77% of startups faced a potential failure in 2020 due to Covid-19
Although we can't entirely blame Covid-19 for the failure of startups - we must not forget the difficulty in creating an enterprise -, the truth is that, after the events of 2020, many companies already advanced in the market were hung by the skin of their teeth. More precisely, 77% of startups feared not reaching the finish line. On the other hand, many other startups grew and found new opportunities after the pandemic began. It's not all bad news, after all! As they say “opportunities arise in every crisis”.
Fact #2: 50% of startups fail in their 5th year
We already know that the failure rate of startups is high and the reasons are varied. It often happens due to the lack of listening to customers, because there is no shared culture among team members, due to the lack of funding, among others. However, they don't always fail at the same stage of development. Some (21.5%) start failing in their first year, others (30%) fail in their 2nd year, and others (50%) in their 5th year. Even after leaving the “startup category” - considering that a startup is less than 5 years old - there is still the possibility of failure. This is the case for 70% of startups, which collapse in their 10th year.