The National, Tuesday October 8th, 2013
ABOUT 90% of all new businesses fail within the first five years, a personal viability business scheme graduation ceremony has been told.
The event was held in Lihir, New Ireland, where it was said statistics indicate that 90% of all new businesses in the world fail within the first five years.
The Entrepreneurial Development Training Centre in Port Moresby said the cause of business failure was not caused by the lack of funds, lack of management or lack of effort.
EDTC believes that the lack of personal viability is the main cause of business failure.
Addressing the Lihir graduation in Londolovit town last Thursday, PV course trainer Samuel Tam said: “Traditionally, we invest considerable sums of money in the preparation of business plans and neglect investing time and money in the preparation of the person who is to develop business.
“Success and sustainability of a project is dependent on a viable person plus a viable project. In this instance, the estimated success rate is 80%.
“However, an unviable person plus a viable project is likely to achieve only 10% success rate worldwide. If both person and project is unviable, total failure is almost guaranteed,” Tam told the graduating 23 level four and 60 level one and two Lihirian participants.
He said while the small and medium enterprises (SMEs) sector had recently gained nationwide interest, the personal viability business scheme starts with micro enterprises and then moves on to small, medium and large commercial enterprises.
Tam said for results to be achieved and to reach the people of PNG, there needs to be a collaboration between EDTC and partners.