By Jacob Kronberg, Syracuse, N.Y. (NCC News) — There is a lot that goes into the creation of a small business. It’s an investment in one’s self. Like an investment, there is risk involved. In the case of a business. It is a big risk. People put their livelihoods on the line to gamble on themselves and work to make their small business succeed. And plenty of people like to bet on themselves.
One of those small businesses that just came about is Sugar Top Bake Shoppe in Liverpool, New York. A storefront that has been open for not even three weeks. Syracuse native Lisa LaPrease is the owner of the shop. She has always had a passion for baking and had been doing it part time for many years. Finally, the idea came up to go full time, and thus Sugar Top Bake Shop was born.
Seems simple enough, right? Well, no.
Lisa had to front a lot of capital in order to make her shop a reality. A process that many people go to the bank for, Lisa and her husband took care of on their own. Lisa and her family took nearly every cent they had and invested it in the equipment and building needed for Sugar Top Bake Shop. And she knows not to expect profit from the investment any time soon.
When trying to get a business loan from a bank, it’s not a guarantee. You also, have to pay interest back to the bank.
The Small Business Association wrote “27% of businesses surveyed by the NSBA claimed that they weren’t able to receive the business funding.”
That means that nearly one out of every four potential businesses don’t even get started because they can’t receive or find the funding. Even if a business does get off the ground sustaining it is also very difficult.
About two-thirds of businesses survive two years in business. Half of all businesses will survive five years. Only one-third will survive a decade.