Startup Business Failure Rate

I quite liked some of these from last year, even though they are for the USA

http://www.statisticbrain.com/startup-failure-by-industry/

I think the stats are worse for Ireland, but, in summary,

  1. Half the businesses are gone in four years.
  2. Nearly half the time because of incompetence.
  3. But the leading Management mistakes are classic: no WHY! Listening to Family and friends instead of business experts, pride, lack of market awareness.
  4. I think we have some good ideas to help!!!
Startup  
Year Percent Failed
Year 1 25%
Year 2 36%
Year 3 44%
Year 4 50%
Year 5 55%
Year 6 60%
Year 7 63%
Year 8 66%
Year 9 69%
Year 10 71%

 

  Major Cause  
  % of Failures Specific Pitfalls
1 46% Incompetence
2 30% Unbalanced Experience or Lack of Managerial Experience
3 11% Lack of Experiences in line of goods or services
4 1% Neglect, fraud, disaster

 

  Leading Management Mistakes
1 Going into business for the wrong reasons
2 Advice from family and friends
3 Being in the wrong place at the wrong time
4 Entrepreneur gets worn-out and/or underestimated the time requirements
5 Family pressure on time and money commitments
6 Pride
7 Lack of market awareness
8 The entrepreneur falls in love with the product/business
9 Lack of financial responsibility and awareness
10 Lack of a clear focus

 

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