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Why Small Businesses Fail: Top 8 Reasons for Startup Failure ~ According to statistics published in 2019 by the Small Business Administration (SBA), about twenty percent of business startups fail in the first year. About half succumb to business failure within five years. By year 10, only about 33% survive. Those statistics are rather grim. And this year (2020), small business survival is an even bigger worry because of coronavirus-related declines in sales.
Bill Gross: The single biggest reason why start-ups ~ Bill Gross has founded a lot of start-ups, and incubated many others -- and he got curious about why some succeeded and others failed. So he gathered data from hundreds of companies, his own and other people's, and ranked each company on five key factors. He found one factor that stands out from the others -- and surprised even him.
5 Reasons Startups Fail â For Entrepreneurs ~ Reason 3: Poor Management Team. An incredibly common problem that causes startups to fail is a weak management team. A good management team will be smart enough to avoid Reasons 2, 4, and 5. Weak management teams make mistakes in multiple areas:
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