Choosing the right backers - and the right sector - can be crucial to the long-term success of new start-up businesses. According to the State newspaper, Scott Shane of Kiplinger.com said there are a number of "myths" surrounding starting a business that can dissuade many graduates from following their dream. Among them is the belief that it takes a huge amount of money to get an enterprise off the ground. However, Mr Shane said the typical start-up "only requires around $25,000 to get going". And, contrary to popular belief, banks are the most common lenders to new businesses, he added. They provide around 16% of the capital to all new US companies - more than trade creditors, venture capitalists, strategic investors, government agencies and friends and family. In addition to securing the right backing, the sector a new business enters can also have a bearing on its success, Mr Shane said. Over the last 20 years, around 4.2% of all start-up firms in the computer and office equipment industries have made the Inc 500 list of fastest-growing US companies. However, only 0.005% of hotel and motel start-ups, as well as 0.007% of food and drink establishments have done the same. According to the International Data Corporation, there are around 8 million small businesses in the United States.  |