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James Millar
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As most posters have stated, success or failure is really a measure of whether a business has met its goals and objectives. It follows that because every business has different goals and objectives then every business will have its own individual definition of success or failure.

If you are talking pure business / investment theoretics then the objective would generally be to produce the highest risk adjusted rate of return to the owners. In small business that investment hurdle rate should be something in the vicinity of 20% – keeping in mind that is over an above any market value owners remuneration for arms length employment in the business. So on a pure financial basis I would guess that many micro / SME’s fail to achieve an acceptable risk adjusted ROI. I’m not sure if it would be as high as 90% but I’d be surprised if it was below 50%.

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