How do some music startups survive
Over 3000 German start-ups do not survive the first three years
This means that more than 3000 young companies did not survive the first three years. According to the data analysis, the total number of bankruptcies in 2016 was 119,772. According to Creditsafe, the priorities for start-ups are often more on product and organizational development and profitability. It is not uncommon for start-ups to collide with unforeseen challenges such as payment defaults, which then throw them off track due to a lack of liquidity and equity. The high insolvency figures from 2016 would confirm that. According to Creditsafe, the risk of slipping into bankruptcy is significantly higher for founders than for established companies.
But the start-ups in this country have now recognized the acute risks and derived ideas for managing the problem as systematically as possible. Creditsafe managing director Daniel Kliem sees a growing demand for business information. More and more companies are realizing how helpful and important business reports are for day-to-day business. "We have dealt intensively with the challenges faced by young companies and analyzed what will help them. The result is a package that supports start-ups in risk management and gives them a far-reaching insight into the financial structure of their business partners," said Kliem. ron
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