Changing the landscape of entrepreneurship
When we think about entrepreneurship, we are usually concerned with things like passion, personal drive, persistence and vision. It’s often that we get lost in the romance of these admirable traits and we forget to consider the reality and bottom line of small business.
Funnily enough, for most entrepreneurs, it’s this aspect which will more often than not lead to their eventual downfall.
Research completed by Business Insider shows us that the unfortunate reality is that 20% of small businesses will fail within their first year of operation, with 34% failing by the end of the second year. This trend continues, with 70% of small businesses closing within 10 years of their establishment.
If passion and dedication is abundantly available for those new businesses, we must look elsewhere for the reasoning behind this trend – and you don’t have to look too far. Cash flow accounts for 82% of the small businesses failure rate – limited cash flow hampers business development, limits staffing, and reduces money available for marketing, product or service development. Non-payment of invoices for small businesses can have catastrophic effects on their ability to last in the medium to long-term.
For Ezi Debt Collection, the ability to help improve the chances of success for small business is a major motivating factor in our vision for ourselves and our customers. As a company which empowers business people to collect upon what they are owed, instead of wasting valuable time chasing, or even, writing off bad debt, achieving such a goal is a very real possibility.
Behind this vision, however, it all boils down to the principle – people should be paid what they are owed within the timeframe the product or service provider outlines. The closer society is able to adhere to this rule, the more feasible entrepreneurship becomes, generating innovation and reaping greater product and service standards for our communities.