The real failure rate of new companies? About 7% after year one, says University of Minnesota sociologist Paul Reynolds.
Sayonara to U.S. Memories, last year's would-be mega-start-up. Out to produce their own memory chips, seven big U.S. computer makers tried raising $1 billion for working capital and a factory. By January, with less than $150 million in commitments, they had called it quits. For now at least, Japanese firms will continue to supply more than 80% of the world DRAM market.
Why She Started the Business
Career control 19%
Opportunity knocked 17
Economic necessity 14
Personal/family crisis 12
Job dissatisfaction 10
Make more 9
Source: "The Avon Report," a survey of 450 businesswomen.
Of 29,397 applications approved by banks for SBA-guaranteed loans last year, 29% were screened out or withdrawn, 10% declined, 59% approved, and 2% stuck in processing. Average loan: $218,000.
-- Leslie Brokaw