If you read this site often, you’d think the startup life is all about successes, funding rounds and expansion. The reality is that within the first five years of existence, half of the startups have failed. Within ten years, that number is up to 90 per cent. What happens with those many, many businesses? That’s what researcher Sarah Herzog wanted to know. She presented her findings last week during the Breaking the Ice event in Amsterdam.
Breaking the ice about failing a business
Herzog started to look into what happens to failed businesses after her PhD in entrepreneurial ecosystems. She found that most ecosystem reports all talked about the same thing: accelerators, access to VC money, support systems for growth. None of those mentioned anything about what would inevitably happen to a large part of startups that were supported. Failing, as it seemed, was often not an option. And if it happened, entrepreneurs were left for themselves.