Source: Startup Business Failure Rate By Industry | Statistic Brain
| Major Cause | Percentage of Failures | Specific Pitfalls | |
| 1 | Incompetence |
46 %
|
Emotional Pricing |
| Living too high for the business | |||
| Nonpayment of taxes | |||
| No knowledge of pricing | |||
| Lack of planning | |||
| No knowledge of financing | |||
| No experience in record-keeping | |||
| 2 | Unbalanced Experience or Lack of Managerial Experience |
30 %
|
Poor credit granting practices |
| Expansion too rapid | |||
| Inadequate borrowing practices | |||
| 3 | Lack of Experiences in line of goods or services |
11 %
|
Carry inadequate inventory |
| No knowledge of suppliers | |||
| Wasted advertising budget | |||
| 5 | Neglect, fraud, disaster |
1 %
|
