The current economic outlook for American businesses looks promising. Unemployment is low, GDP is up and the stock market is healthy. Despite all this success, however, small business failure rates remain the same. This is a troubling statistic considering more than half of them won’t survive past five years.
So, how is it that the economy is booming, yet small business failure is flat? It’s because macroeconomic successes have nothing to do with the day-to-day operations of small companies. There are many reasons small businesses fail, such as cash flow, inability to execute, competition and even low product interest. When you are running a small business, every speed bump feels like a mountain. Hit too many speed bumps at the same time and it can cause cascading problems that are difficult to overcome.