ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Only 20 percent fail within the first year but 50 percent fail within the first five years. In other words, an additional 30 percent of businesses will fail between years 2 and 5, or about 7.5 percent of the initial amount per year.

Detailed explanation-2: -Startup Failure Rates About 90% of startups fail. 10% of startups fail within the first year. Across all industries, startup failure rates seem to be close to the same. Failure is most common for startups during years two through five, with 70% falling into this category.

Detailed explanation-3: -Data from the BLS shows that approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years. Only 25% of new businesses make it to 15 years or more.

Detailed explanation-4: -According to the U.S. Small Business Administration, over 50% of small businesses fail in the first year and 95% fail within the first five years.

Detailed explanation-5: -The most common reasons small businesses fail include a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives.