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Survey shows young people fear starting new businesses

A good many people in Michigan and elsewhere are fearful about the prospects of starting a new business. It appears that younger people may even be more fearful than others about the prospects that a new business start-up will ultimately prove to be a failure. This was all confirmed in the results of a new extensive survey.

Those questioned were 26,000 different individuals residing in 24 countries, including the U.S. The facts show that four out of five new startup businesses are not around to celebrate their fifth anniversary. And the survey showed that people under the age of 30 were even more pessimistic than other about the prospects for possible success.

Young potential entrepreneurs understandably worry about the possibility of disappointing their families as the result of a business failure. The people surveyed ranged in age from 14 to 99 years old, leaving the views of those 100 or older on the prospects for new business ventures a total mystery for now, and probably an unlikely subject for future research.

While many are pessimistic, many thousands do, every year, start new businesses, with a wide range of products and services, some very traditional, some very innovative, and some completely speculative. Family support can be important, as can government support, obtaining financing, needed training and education, and market research. Good solid legal advice as to how to structure a business, comply with applicable regulations, and avoid unnecessary taxation is also extremely beneficial.

In the survey, in the U.S., around 48 percent of the people under 30 cited their fear that a new business could fail as the reason for not starting one. Those 30 and over only had 38 percent fearful of such failure. Some business startups do succeed however, and one thing is clear: You'll never know unless you try.

Source:  Detroit Free Press, "Carol Cain: Younger people shy away from starting a business because of fear of failure" Carol Cain, Jan. 12, 2014

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