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You can’t push an incoming wave back into the
sea. No matter what you do, it’s going
to come crashing down upon the sand.
The same may be said of business ventures which, for
whatever reason, are about to hit the beaches of the bankruptcy courts. This applies whether a company is in the
field of solar energy or in any other emerging market where competition is tough
and the future uncertain.
The
rate of failure among start-ups, especially among those in new, cutting
edge industries is very high – often 60% or greater within the first four years.
One study that
employed Census Bureau data shows that only 29% of new businesses which started
in 1992 were still operating in 2002.
That is why, in the United States, the traditional source
of funds for unproven start-ups has been venture capitalists, not the Federal Government.
Venture capital firms usually spread their risk among
a diverse group of young emerging companies and perform a high degree of
analysis on a fledgling enterprise, its founders and its markets. Their due diligence is pristine.
