Why Small Businesses Fail

A staggering 95% of small businesses fail within the first five years.

Here are the most common reasons why…

  1. Poor Financial Management 32%
  2. Management Competence or Experience 15%
  3. Economic Conditions 12%
  4. Poor Books and Records 12%
  5. Sales and Marketing Problems 11%
  6. Staffing Problems 9%
  7. Union Problems 6%
  8. Failure to Use External Advice 3%

Perhaps knowing about the most common pitfalls can help new small business owners avoid them and increase their chances of success.