Startups in 2019 have a staggering 90% failure rate, about 21.5% fail within the first year, and 30% after just two years. Surviving post the 3rd year is the ultimate litmus of survival.
There are many reasons why startups fail to grow, and many of these concern what the entrepreneur may lack. Whether it’s the industry know-how, the right marketing approach, the team they’ve recruited, or their inherited and acquired characteristics, there is always a missing piece to the elaborate puzzle. Many entrepreneurs do not know how to grow their businesses fast enough to become self-sufficient, leading to startups failing during the early stages of development.
Many entrepreneurs bring one thing to the table: the solution to an urgent problem. This is a good foundation to start on. However, the failure of a startup is not often due to a lack of innovation but a lack of sustainable revenue. A connection between a problem and its market is just as important as its connection with a solution aka PMF. This is possible with access to industry expertise, startup expertise, and management expertise. Nowadays, an entrepreneur is expected to be a jack of all trades, but that is not a reasonable or accessible criterion to follow.
To better understand the startup environment and loopholes, startups need acceleration programs or incubation centers that help them shape into better & long-lasting solution providers. Today, acceleration programs heavily influence idea evaluation, funding, marketing, team building, product value proposition, and pitching to investors. They help startups reach the challenging standards that are needed for success.
Acceleration programs are hubs of experience, partnerships, resources, and industry experts that you can get all under one roof. They help entrepreneurs avoid the slippery slopes most startups face and help them work to become self-sufficient, global companies.