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Only 19% of employee turned entrepreneurs succeed: poll

Only 19% of employee turned entrepreneurs succeed: poll

Taipei, Sept. 24 (CNA) Only 19 percent of office workers who went on to launch their own businesses have succeeded in doing so, and only one third of those people have recovered their costs, illustrating the harsh realities of being an entrepreneur, according to a poll released Thursday. The poll, released by online job bank yes123, showed that 51 percent of office workers who have taken actions to launch a business have since closed them down, while 30 percent are still in the preparation stage of launching their business. The reasons for closing their businesses include lack of funding (39.5 percent), lack of customers (35.8 percent), continued losses (33.3 percent), expensive rent for office or retail space (27.2 percent) and lack of expertise (19.8 percent), according to the poll. Citing poll results, yes123 spokesperson Yang Tsung-pin (???) said respondents spend an average of 24.9 months to prepare for the launch of their businesses, including evaluating the market, developing products, and deciding on distribution channels and store locations. According to the poll, entrepreneurs spend an average of 9.9 hours a day running their businesses, and 66 percent of them said they work longer hours after starting their businesses. Yang said it is not that easy for entrepreneurs to recover costs and make a profit, and that sometimes pulling out of the business to prevent further losses is not necessarily a bad thing as one can learn valuable lessons from failure. The poll also shows that 92 percent of office workers have dreamed of launching their own businesses. Among them, 22 percent have had the dream since they were students, and 23.8 percent have developed the thought after a decade of working. Reasons to start businesses include the hope to follow one's interest, increased income, flexible work hours, fear of not being able to find a job or being laid off, and perceived unreasonable wage levels in Taiwan, according to the poll. The five most popular businesses to start are: coffee and tea shops (41.4 percent), other restaurants (39.4 percent), bakery and pastry shops (26.1 percent), travel and accommodation-related businesses (24.8 percent) and clothing and accessory shops (17.3 percent), the poll shows. Competition in these popular businesses can be fierce, and business starters can find themselves stuck in a low-profit environment, unless they are able to distinguish themselves from their competitors, Yang said. The poll, conducted between Sept. 1 and 22, collected 1,306 valid questionnaires from respondents aged 20 and up. It had a confidence level of 95 percent and a margin of error of 2.71 percentage points. The respondents are members of yes123 who have graduated from school or finished their compulsory military services. (By Chiu Po-sheng and Christie Chen)


Updated : 2021-02-27 03:11 GMT+08:00