Why do 97% of home based business fail? Fact.?

Could it be that they run out of marketing moneys, or they are a scam, or use your efferts to gain moneys to advertise because of a huge debt, Joined at the wrong time, you spend more money trying to advertise then your pay check.

The 97% failure rate (or 9 out of 10 closure of businesses) is actually a myth -- no one can attribute the source for this data.

In this SBA study entitled "Redefining Business Success: Distinguishing Between Success and Failure" http://www.sba.gov/advo/stats/bh_sbe03.p... , the US Bureau of Census' Business Information Tracking Service (BITS) finds that :

66 % of new firms survive two years or more
50 % survive 4 years or more
40 % survive 6 years or more

Another study by Philipps and Kirchhoff finds that three-quarters of all businesses survive 2 years or more; about half survive 4 years or more; and 40 percent survive 6 years or more

The study did not specifically look at home businesses, but finds that starting as a home business can be a positive factor that can explain the likelihood of survival of businesses. The most likely reason for business survival include:

- starting a business with capital greater than $50,000
- having a college degree
- starting a business for personal reasons

While being a home-based business signals lower capital, home business owners have the advantage of lower startup and operating costs, hence increasing chances of survival. Plus the home-based business owner is likely to enjoy the lifestyle of working from home, thus increasing the persistence level.

Will, the reason is that most people start their business like gamblers and manage them like clowns. In the end, they got a business that is like a house built on top of mud. Just a little bit of rain and it all goes down.