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 %
|