Advice key to solving high failure rates

Forty per cent of businesses go to the wall within five years, it has been claimed.
More than a third of new business start-ups in Longford go to the wall during their first five years in operation, a new study has found.

More than a third of new business start-ups in Longford go to the wall during their first five years in operation, a new study has found.

According to a recently published Eurostat report, just 46 per cent of companies founded in 2005 were still in business half a decade later.

That’s just six per cent higher than the Longford average, something which industry experts have blamed on a lack of commericial guidance and assistance.

“It is difficult to get exact statistics for survival rates of new businesses in Longford, but it is generally accepted that around 40 per cent of SME businesses fail within the first five years,” said John McGuire, chairperson of the David Manley Emerging Entrepreneur Awards.

Mr McGuire was speaking at the launch of the 2014 David Manley Emerging Entrepreneur Awards in recent days. “Every person starting their own business needs to have someone to give them objective advice,” he said.