The actual statistic (Business Links, UK) is 90% of startup businesses go bust within the first 6 months. If you can hang on longer than this, the statistics improve. This mainly has to do with cash flow, startup costs etc. which many starups don't adequately plan for. If the business model enables you to survive "indefinitely" and and you have minimum operating and living costs, this works fine. However, the other problem is stagnation - if you're not growing and no new ideas or changes are going into the business, you're going nowhere, no matter how long you hold on. Sincwe markets change quite rapidly, chances are that an idea that was great 3-4 years ago, will be stale and done by somebody else if it's not acted on quickly enough.
The actual statistic (Business Links, UK) is 90% of startup businesses go bust within the first 6 months. If you can hang on longer than this, the statistics improve. This mainly has to do with cash flow, startup costs etc. which many starups don't adequately plan for. If the business model enables you to survive "indefinitely" and and you have minimum operating and living costs, this works fine. However, the other problem is stagnation - if you're not growing and no new ideas or changes are going into the business, you're going nowhere, no matter how long you hold on. Sincwe markets change quite rapidly, chances are that an idea that was great 3-4 years ago, will be stale and done by somebody else if it's not acted on quickly enough.