According to the Small Business Administration (SBA), close to 66% of small businesses will survive their first two years. What that means is that only about one-third of total businesses will fail during the first two years. The SBA also tells you that about 50% of businesses fail during the first year in business. Business failure refers to a company ceasing operations following its inability to make a profit or to bring in enough revenue to cover its expenses. A profitable business can fail if it does not generate adequate cash flow to meet expenses.
This TED Talk is delivered by Knut Haanaes. Haanaes is a professor of strategy and international management at IMD, formerly senior partner and global leader of BCG’s strategy practice – where he is still a BCG Fellow. Through his work with clients, Knut has accumulated extensive experience in a number of industries on issues of strategy. He holds a Master’s Degree in Economics from the Norwegian School of Economics, a PhD in Strategy from the Copenhagen Business School, and has been a visiting scholar at Scancor, Stanford University.
Watch this compelling TED Talk here: