Quote:
Originally Posted by barbara
Boreas
After some googleing, I found that at least 50% of small business fail in the first year and 95% in the first five years. Businesses with less than 20 employees have a 37% chance of surviving four years.
I'm guessing the failure rate for publicly funded businesses is not so different than the failure rate for privately funded businesses.
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We all know that, but thanks for the numbers. Every one of those private businesses lost their own money and they chose where to invest it. Moreover, inadequate starting capital is the most common failure mode for small businesses. There never was, and never will be, a mechanism better than the market to allocate scarce resources. When private money will not invest, it is usually a good sign that there is something wrong with the purported investment.
Here's a quick summary of how those green "investments" are doing:
http://jeffreystedfast.blogspot.com/...-stimulus.html
Obviously, the government has other reasons for promoting one business over another, but that is not the purpose of government in a free market economy.