Our economy relies on entrepreneurs, or people starting new businesses, to propel our economy forward. N.C. Cooperative Extension economist Mike Walden explains what we know about these frontier investors.
“Their job is very tough. … Studies show that most people who attempt to start a business do so because they are unhappy with their current job. They have a dream of being their own boss. And that’s great, but they should be realistic because the failure rate among people who are starting new business is very high. In fact, in some sectors the failure rate for two years is over 50 percent.
“Secondly, studies show that for most people who start their own business, they actually end up making less money than they did when they were working for someone else.
“So the odds are stacked against entrepreneurs, but we still need them because our economy … is really propelled forward by these folks who are willing to take risks. The best advice I can give people who want to start their own business is be realistic, have a plan, and certainly do your homework, and that will give you much better odds of succeeding.”