ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -According to data from the Bureau of Labor Statistics, as reported by Fundera, approximately 20 percent of small businesses fail within the first year. By the end of the second year, 30 percent of businesses will have failed.

Detailed explanation-2: -According to the U.S. Bureau of Labor Statistics (BLS), this isn’t necessarily true. 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-3: -Percentage of businesses that fail in the U.S. The business failure rate in the U.S. within the first year is nearly 20%-18.4%, to be exact-according to a LendingTree analysis of BLS data. (All one-year data examines the March 2021 status of businesses that opened a year earlier in March 2020.)

Detailed explanation-4: -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-5: -The reality is that 90% of startups fail. From budgeting apps to legal matchmaking services, businesses across every industry see more closures than billion-dollar success stories. And a whopping 10% of startups fail before they reach their second year.