Startups and Business Mentoring, here are some statistics.....
You will have understood , with the first 2 episodes of our micro saga on startups and Business Mentoring, that before money, it is quality and the human factor that must be taken into account, at all levels and at every stage.
Nevertheless, supporting this analysis with some statistical data enables to give it substance and to replace it facing an uncompromising "business" reality!
Besides, I just saw that a new reality TV show was about to be launched: "Who wants to be my partner? "....I am extremely puzzled about this initiative:
- Rather positive because one of the people participating is a successful serial entrepreneur whose approach I appreciate,
- Rather negative because the world of entrepreneurship is not a "joke" supporting a kind of TV show disconnected from reality and which, in my opinion, will disturb even more the understanding, which isalready not easy, of what entrepreneurship is...
Well, the future will tell us if my doubts were well founded.....
Going back to the heart of the subject of this 3rd episode, here are some elements and figures to complete my approach of the need to be accompanied (business mentoring) to ensure optimal risk management in the first years of your company.
The risks of drop out are very real and recurrent, and despite all your energy and resilience, you will be confronted with them in the first 5 years, so you might as well be aware of them and mentally prepared to face them, or even anticipate them by acting with lucidity and humility!
(sources are mentionne at the end of the article).
Let's start with entrepreneurs who declare that they were accompanied, (without really knowing what this accompaniment consisted of, but I didn't find any more details...)
- 40% of French entrepreneurs say they are / or have been accompanied : that's ok, but...
- 51% of entrepreneurs are supported by public bodies : in other words, one in two companies is "infused" and often poorly advised by the « public area » in its early years! ! !
- 29% by networks or associations : generally local actors or with local representativeness
- 17% by relatives : but be careful if the advisors are not the payers....
- 15% by investors : what about their own approach and interests?
- 12% by large companies : this is a real underlying trend that allows these companies to "manage" outsourced R&D and "do their market" directly at the source in terms of acquisition and integration. It is a source of support that we like to solicit atADINVEST, because it is often close to the field, pragmatic, reactive and rather easy to target.
- 8% by private incubators : in fact, about 300 structures in France, all sizes and all approaches combined.
For those who are NOT accompanied:
- 36% of them say that they "did not find the right person to talk to or did not know whom to turn to": it is not easy to "select" the right person to accompany you.
- For 48% of them, there is a lack of financial assistance, advice on strategy and development and networking, all of it to ensure greater growth and reach the critical size of "survival", before dying..
As a reminder, at ADINVEST International / ADINVEST France, the 3 main axes of collaboration with our customers-Managers are: Skills, Finance, Networks!
Well, well, well, well......
3rd angle of analysis, the mortality rate of our companies in France, to be compared of course with the statistics presented above, is absolutely edifying!
- 25% of companies die within the first 2 years
- In the first 5 years, this rate rises up to 50%!
- This mortality rate can rise to more than 80% in this post-incubation / acceleration phase! ! And even if many entrepreneurs rebound, the price to pay remains high for "testing"....
- The most complex and high-risk years are between the 2nd and 5th year.
- For supported companies (again, to be totally precise, it would be necessary to detail by type of support...) this 5-year mortality rate never exceeds 34%....
- And this same rate is less than 5% for companies "Business Mentored" by ADINVEST and whose manager is in perfect collaboration with our certified Business Mentors (@Mentortcert).
And then, I realize that our saga in 3 episodes, will require a fourth, which will address the reasons for the failure of a startup (and a company in general), with a reminder of the fundamentals to be respected to optimize your chances of success!
In the meantime, Women Entrepreneurs, Entrepreneurs, I give you a scoop of one of my best kept secrets (just joking !) but that we tend to hide too often (in fact, seen a little while ago in a post whose author's name I did not note, may he forgive me for forgetting if he recognizes himself...):
"If there is no competition, it's because there's no market! »
I let you think over this, you who are working on the "competition-market" part, for your pitch for your hyper disruptive "product-service"!!!!!!