Comments for 20% of New Brazilian Businesses Don't Resist a Year. Half Disappear in 8 Years at http://www.brazzilmag.com , comment 0 to 4 out of 4 comments http://www.brazzilmag.com Fri, 09 Jan 2009 18:36:59 +0100 FeedCreator 1.7.2 http://www.brazzilmag.com/content/view/8934/54/#pc_12234 I wonder if in developed countries the ratio is not worse. The problem is not the 50 % failure rate, but how are performing the surviving ones. Example 1: if 2 people start 2 new businesses, if one fails and the other grow to 4 people, it becomes highly successful, since it generates more jobs overall. And to make it more successful and profitable for the surviving ones, the government should reduce the bureaucracy and red tape. Thus the surviving ones could grow to 5 or 6 people instead of 4 during the same 8 years. And they would also being more profitable per worker, generating higher wages. Example 2 : in my country, one of the wealthiest and most successful in the world, there is a trend that a some point in the life, many people withdraw their pensions fund and savings to create their business. The rate of failure is at around 75 % after less than 3 years.(Sadly ???) true.But this is not a failure, because the other 25 % generates far more jobs and biggerwealth than the jobs lost in the failing new or exisiting businesses. And those who failed will find a new job in an exisiting successful business. End results : my country has an unemployment rate of below 3 % and a shortage of workers in just about every industry. And one can set up a business in far less than 2 weeks very cheaply. Not everyone despite their (natural?) own ego of being better than others are really better than others. A company losing money or struggling to survive must either restructure itself, have a stricter discipline or MUST disappear. And the minority of winners will far more compensate the majority of the failures. That is sound and healthy business vision. ;) :D ;D - ch.c. Fri, 30 Nov 2007 23:37:10 +0100 http://www.brazzilmag.com/content/view/8934/54/#pc_12230 [quote]OBS: My comments Reasons for failure: [/quote] Great.You summed them all up succinctly. Add the antiquated labor laws and labor courts that consider small and medium sized businesses as demons. - João da Silva Fri, 30 Nov 2007 18:23:58 +0100 http://www.brazzilmag.com/content/view/8934/54/#pc_12218 OBS: My comments Reasons for failure: 1.> Lack of working capital 2.> Inexperienced management - selection of employees - understanding of market 3.> Taxes 4.> Underpricing of services rendered - Donald Reid Fri, 30 Nov 2007 10:20:31 +0100 http://www.brazzilmag.com/content/view/8934/54/#pc_12215 I read about it this morning. I wonder why the reasons for the closures of the companies were not given. - João da Silva Thu, 29 Nov 2007 22:20:58 +0100