According to Entrepreneur Magazine, the rate of failure for small businesses has fallen by 30 percent since 1977. So why does running a small business still feel so difficult?
It may simply be that because there are fewer people able to get financing for small businesses, there are fewer businesses entering the field and less competition for existing businesses (the Census Bureau shows there were 51% fewer businesses entering the market in 2013 compared to 1977). However, businesses have also become more savvy in the last forty years. Many business owners have advanced degrees and employ smarter business management plans and technologies than previous generations.
Smarter Business Practices
Business degrees have become more popular in the last decade, even if they aren’t n
early as affordable. Entrepreneurs often recognize that while having hands-on business experience is useful, without advanced knowledge of finance, taxes, logistics, and payroll, their business is less likely to succeed. Business owners today tend to be well-educated. Even those who don’t finish their degrees and go on to found tech companies often attended elite schools.
Business education has also included more information about outsourcing tasks, not just payroll and marketing, but also shipping, packaging, assembly, and other jobs related to fulfillment. Outsourcing can reduce overhead and turnover, two issues that can often sink a new business.
Smarter business owners are also using smarter tools to improve their bottom line. Computers, fast internet connections, and point-of-sale technology like Square that can turn iPads into cash registers have all helped reduce initial investment and ongoing costs for small business owners.
Are you looking for smarter ways to improve your own business’s chances of success? At Ohio Valley Goodwill Industries, we have been helping small business owners thrive for decades. Our motivated workforce assists with outsourcing tasks and basic logistics to help companies thrive. Come visit us for a free tour of our packing, shipping, and assembly service facilities.