[Column] ② Companies are designed to fail.

I would like to introduce a column article.

How many years has it been since your company was founded? According to the Small and Medium Enterprise White Paper, the survival rates of companies born over ten years are as follows: the survival rate after one year (newborn) is about 72%. The survival rate after three years (kindergarten) is about 50%. The survival rate after five years (senior kindergarten) is about 40%. The survival rate after ten years (fourth grade) is about 26%. In other words, the probability of surviving for ten years is only 30%, which highlights the difficulty of survival compared to human survival rates. Looking at the trend of bankruptcies at economic turning points: - COVID-19 (2020): 7,773 cases. - Normal period (2019): 8,631 cases. - Great Earthquake (2011): 12,707 cases. - Lehman Brothers (2009): 13,306 cases. - Bubble (1987): 12,655 cases. The factors leading to bankruptcy vary with changes in the environment, but bankruptcies occur in every era, regardless of whether the economy is good or bad.

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