This is a summary of a news release I will be sending out this weekend. Although the statistics are terrible, each of us, if we prepare ourselves, can help those less fortunate and at the same time strengthen our businesses. Much more on this topic over the next few years!
Scottsdale, Arizona August 1, 2019 ASU President, Michael Crow predicted that technology will replace 30% of all current jobs within the next 10 years. Speaking to CBS News’ Scott Pelley in an interview for 60 minutes, Kai Fu Lee said that he believes 40 % of the world’s jobs will be replaced by robots capable of automating task. He said that both blue collar and white collar professions will be affected. Others, including Elon Musk, who has warned about the power of artificial intelligence — worry that automation, could disrupt entire communities.
Small business is acknowledged as the back bone of our economy. They are glamorized on TV and governments, both state and national, tout the number of new businesses opening in their areas. Let’s look at a few statistics: Approximately 540,000 new businesses get started each month in the US. (www.forbes.com). According to Bloomberg 8 out of 10 entrepreneurs who start businesses fail within the first 18 months. If we add independent contractors, who are really running a small business, their failure rate is in excess of 90%.
In our own research, we determined that one of the main reasons for such a high failure rate is a lack of resources, including affordable, immediately applicable, ongoing education and support. There are very limited sources to obtain the necessary success tools and mentorship required to increase the chances for success.
New businesses are started for a wide variety of reasons, including inability to find a job, a need for extra income while raising a family or in retirement. Yes, there are also those that have an entrepreneurial spirit and want to work for themselves. The majority of new businesses need to generate cash in a relatively short period of time. They don’t have the time or money to get a degree in business, much less obtain the necessary knowledge in such areas as accounting, marketing, management and operations.
If we could decrease the failure rate of small businesses by as little as 3 % the positive impact on our economy would be significant.
Tips & Advice by Nick Petra, CFP – Founder of Strategic Duck and BizQuack
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