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  • Writer's pictureAlexa Dumitru

What makes companies die or thrive?

When I started to write this article I asked myself if this is not too big of a question to be answered in an article. My answer was yes so I decided to create a series of articles on this topic. This is the beginning of it.

About 305 million startups are created annually. On average, only about 10% of all startups survive and become full-fledged business enterprises. The stats are frightening is you are an optimistic, enthusiastic and idealistic new entrepreneur.

There are million of recipes for success out there in books and articles and consultants and in the same time there is none.

What makes some businesses grow, adapt, succeed while most of them never get a chance to live, never get off the ground?

First of all, there is no recipe for success as I stated above. Every business it’s like an engine and every engine works differently. Every engine

What makes some businesses sprout, grow, adapt, and succeed, while most never get off the ground?

Researchers in the growing field of organisational ecology say it is not enough to study the companies that thrive. Answers lie in the stories of failure."

Organisations change easily and often. Actually, the research shows inertia reigns. The relevant players in an industry are companies that have opened for business. Industries are also shaped by ideas from companies that are aborted or stillborn. Companies without competitors have the best chance of survival. Companies with enduring competition are better survivors. New organisations are the most likely to fail. It is not their youth but their small size that is the biggest risk factor. Personnel changes at the top of a company are disruptive. It is more disruptive for existing executives to change the company blueprint.

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