Over 80% of businesses fail within the first five years – Dr Olumide details

The Global President of the Billionaire Conclave, Dr Olumide Emmanuel, has highlighted some damning reasons why businesses fail after a few years.

According to him, the number of businesses that survive beyond 5-10 years of operating is less than 20 percent.

He said these businesses fail for various reasons including the mindset with which the business is started and the way it is operated in the long run.

Speaking to journalists at a press soiree ahead of the Building Transgenerational Wealth and organization conference in 2024, he said: "Over 80% of businesses fail within the first five years and within the next five years another 80% fail. So, if you see any company that is 10 years old and above that company is unique. And many of you can testify that you have either started businesses that have failed or put your hands in so many things that did not work.”

Dr. Olumide said starting businesses for survival is one way to stifle the growth of the business since survival will be the owner's main goal therefore the longevity of the business’ growth may not be exactly prioritized.

“One of the reasons why businesses fail is because of the mindset with which they start. A lot of people start businesses with the mindset of survival. They start businesses so that they can have money to eat and take care of their family. Survival mentality cannot build transgenerational wealth. Because if the mindset is for survival, once you can eat, pay your children’s school fees, and travel you think you are rich but once they change your money to pounds you realize how poor you are,” he said.

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He added that the lack of a strong vision and a goal to make a global impact coupled with inconsistency in government policies pose serious challenges to businesses.

The Building Transgenerational Wealth and Organization Conference is scheduled for February 8 and 9 2024 at Tang Palace Hotel.

The conference will cover topics on developing a transgenerational mindset, 7 major reasons why organizations stop growing, 20 reasons why businesses fail, 7 warning signals to note, and the wealth codes among others.

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