Survivorship bias is a common issue in startups and entrepreneurship. This occurs when entrepreneurs focus solely on the success stories of companies that have survived and thrived, while ignoring or overlooking the failures and challenges faced by most companies that have failed.

For example, if one were to only look at the successful startups such as Google, Facebook, and Amazon, they may come to the conclusion that starting a company guarantees success. However, this fails to acknowledge the reality that many startups fail, and only a small percentage achieve success.

Survivorship bias can lead entrepreneurs to overestimate their chances of success and underestimate the risks and challenges involved in starting and running a business. This can also lead investors to focus solely on companies that have survived and thrived, rather than considering the potential risks and challenges faced by new and emerging companies.

To avoid survivorship bias, it is essential to look at both successful and unsuccessful companies and analyze the factors that contributed to both success and failure. This can help entrepreneurs and investors make informed decisions, and foster a more realistic and nuanced understanding of the opportunities and challenges involved in startups and entrepreneurship.