[Column] ② Companies are designed to fail.

I would like to introduce a column article.

How many years has your company been established? According to the Small and Medium Enterprise White Paper, the survival rates of companies 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 (preschool) 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 environmental changes, but bankruptcies occur in every era, regardless of whether the economy is good or bad.

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