Whether that person has a world-changing idea or is starting a new coffee shop, the glass has to be half full that the business will succeed. Otherwise, what is the point of starting a new company in the first place?
The Harsh Reality
Today’s infographic from InsuranceQuotes shows that this entrepreneurial enthusiasm might be misplaced. The reality is that it’s a cruel world out there for entrepreneurs. The Bureau of Labor Statistics in the United States keeps a sobering tally of how often businesses fail, and here are the numbers from 1995-2015: Statistically speaking, there is over a 50% chance that any new business is toast in five years. And the record for tech startups? It’s even worse, with 90% of all startups eventually failing.
Business Failure Can Be Complex
It takes the confluence of many factors to build a successful business: assembling the right team at the right time, achieving product/market fit, staying on top of the competition, and getting the necessary funding are just some of the key elements to success. In the same vein, it is often hard to pin down just one reason for failure, since everything is so interconnected. For example, one study by U.S. Bank shows that 82% of small businesses fail because of cash flow mismanagement. This is a fair point, since without cash flow there is no business. However, while cash flow may end up being the final nail in the coffin for many businesses, it’s also fair to say that a lack of cash flow can be the symptom of other problems. What if the company is going after the wrong market? What if the team is dysfunctional and unmotivated? What if the company isn’t differentiated enough to compete? With any of these situations playing out, it should be no surprise that sales aren’t coming in like expected, which would certainly tank cash flow. At the same time, a company with the right team and product should be able to make swift changes to right the ship from any chronic issues.
Some Reasons Businesses Fail
With the complexity of business failure in mind, here are some of the commonly listed reasons for why businesses fail:
82% experience cash flow problems 42% find that there is an insufficient need for their product or service 29% run out of cash 23% do not have the right team 19% are out-competed
Lastly, for a full list of reasons for why businesses fail, see this infographic showing 20 common reasons why startups fail. on Every year, millions of new businesses are started across the world—in 2021, nearly 5.4 million new business applications were filed in the U.S. alone. And since startups and new businesses play a significant role in shaping a country’s economic growth, encouraging entrepreneurship is vital. But what types of businesses around the world are people most interested in starting? These maps by ZenBusiness show the most popular types of businesses that entrepreneurs in nearly every country want to start, based on analyzing relevant internet search results.
Most Searched Businesses Around the World
To source the data, ZenBusiness analyzed searches from Ahrefs, specifically looking for the term “start a business” and its equivalents in local languages as of February 2022. They then found the relevant topic or keyword with the highest search volume, and organized the results into 11 different industries:
Beauty & Cosmetics Food & Drink Logistics & Infrastructure Personal Services Recycling Software Development Business & Financial Leisure & Tourism Marketing Real Estate Retail & E-Commerce
The data showed that the industries entrepreneurs are most attracted to vary greatly from country to country, depending on a variety of factors such as infrastructure, business climate, and culture. Here’s a breakdown of the most searched businesses around the world, broken down by region.
Africa
From cooking gas refills in South Africa to supplements in the Gambia, entrepreneurs across Africa seem to be interested in starting a wide range of businesses (at least according to their searches). But while the results varied across the region, the most-searched industry was personal services such as cleaning, interior design, and contracting. Cleaning was especially popular, ranking first in six different African countries. One African country worth highlighting is Morocco, where freight is the most-searched startup term across the country. This makes sense considering Morocco is home to several major ports, including the Port of Tanger Med, which is Africa’s largest port by cargo capacity.
Europe
In Europe, real estate is the most-searched industry, ranking number one in seven different countries across the continent. Over the last decade, the European Union’s real estate market has boomed—between 2010 and 2021, home prices in the EU increased by 42%. Retail is also a popular industry across Europe, with clothing-related searching taking the top spot in five different European countries.
Middle East & Central Asia
From soap production in Uzbekistan to dropshipping in Azerbaijan, the Middle East & Central Asia have the most diverse searches compared to any other region. One particularly interesting top search was in the United Arab Emirates, where imports and exports ranked first. The UAE’s economy is heavily reliant on trade, especially oil, which makes up 30% of the region’s GDP and 41% of public revenues.
Rest of Asia & Oceania
Asia and Oceania had an interesting mix of unique business searches. For instance, pig farming ranked number one in the Solomon Islands, and lawn moving took the top spot in New Zealand. But generally speaking, retail was one of the most-searched-for business types across this region, with clothing taking the top spot in countries like Australia, Indonesia, and Singapore.
North America
Across North America, retail takes the top spot for most searched business type. In fact, the top searches in nearly half of the region’s countries are related to the retail or e-commerce industry. The U.S. currently has the largest retail market in the world, although China is close on its heels. In 2021, America’s retail market was valued at over $6.5 trillion U.S. dollars.
South America
Food was the top searched industry across South America, ranking number one in half the countries across the region. In Brazil, sweets took the top spot, which might not be surprising considering the country is the top sugar cane producer worldwide. Clothing was also a popular business idea, taking the top spot in five South American countries. Which countries surprised you the most with their new business interest?
