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Really tired of this persistent startup myth
This week I came across yet another "recommended for you" LinkedIn post with thousands of thumbs up from an influencer with a massive following sharing entrepreneurial advice, including the point, “And always remember, startups don't fail because they run out of cash!” Virtually all research on startup failures points to cash flow issues as one of the top two reasons businesses don't make it. This isn't a matter of opinion—it's well-documented data. Just google the Statista reports called "Main reasons for business failure among start-ups worldwide". Every year they look the same: running out of cash and lack of market need are the two top reasons, and they account for approximately 70-80% of failures. These findings remain consistent year after year. But yeah, cash flow is not the problem... it's just your mindset! It's high time we stop recycling this “motivational” nonsense and start calling out the influencers who spread it.14
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