Current in Entrepreneurship Blog

Did you know that about 50% of all startups fail within the first two years? While this statistic may vary depending on how we define "failure," it’s a stark reminder: launching a business is challenging, and success is never guaranteed.

Defining Startup Success

Success looks different for every entrepreneur. After years of conversations with business owners, it's clear that success can mean many things. For some, it’s about breaking free from a restrictive job and creating their own path. For others, it’s the financial security that comes from building a valuable business they can eventually sell or take public. And for many, it’s simply the satisfaction of turning their passion—whether it’s art, cooking, consulting, or technology—into a livelihood.

Vision, Risk, and Capital – The Entrepreneur’s Path

Starting a business often begins with a vision, but few truly consider the risks that grow as initial capital dwindles. We see examples of entrepreneurs who have made it big, and it’s easy to believe we can follow in their footsteps. But can you take on the risk that comes with it?

Measuring Your Risk Tolerance

The smartest advice for aspiring entrepreneurs is to measure their ability to handle risk. This depends on your financial situation, age, family responsibilities, and more. If you’ve got the flexibility to make the leap, the journey can begin safely. But if the risk feels too great, consider alternatives—like raising funds from friends or family—before abandoning the security of your current job.

Some say that burning the bridges of safety forces an entrepreneur to focus like never before, making success their only option. While bold, this approach is risky—perhaps even a little insane. But given the 50% failure rate, maybe all entrepreneurs need a bit of insanity to make their dreams come true.