Startup Business Failure Rate By Industry
Statistic Verification
Source: Entrepreneur Weekly, Small Business Development Center, Bradley Univ, University of Tennessee Research
Research Date: July 5th, 2015

The reasons are sometimes complicated and not always clear why a certain business fails? Upper management, lack of funding, or just the free market phasing out unwanted items or services. Typically, startups have a casual attitude to promote efficiency in the workplace, often needed to get their business off of the ground. A new trend in failed startups is the purchasing of patents by what are derogatorily known as "Patent trolls".

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IndustryPercent Still Operating After 4 Years
Finance Insurance and Real Estate58 %
Education and Health56 %
Agriculture56 %
Services55 %
Wholesale54 %
Mining51 %
Manufacturing49 %
Construction47 %
Retail47 %
Transportation, Communication and Utilities45 %
Information37 %
YearPercent Failed
Year 125 %
Year 236 %
Year 344 %
Year 450 %
Year 555 %
Year 6 60 %
Year 763 %
Year 866 %
Year 969 %
Year 1071 %
 Major CausePercentage of FailuresSpecific Pitfalls
1Incompetence
46 %
Emotional Pricing
  
Living too high for the business
  
Nonpayment of taxes
  
No knowledge of pricing
  
Lack of planning
  
No knowledge of financing
  
No experience in record-keeping
2Unbalanced Experience or Lack of Managerial Experience
30 %
Poor credit granting practices
  
Expansion too rapid
  
Inadequate borrowing practices
3Lack of Experiences in line of goods or services
11 %
Carry inadequate inventory
  
No knowledge of suppliers
  
Wasted advertising budget
5Neglect, fraud, disaster
1 %
 
 Leading Management Mistakes
1Going into business for the wrong reasons
2Advice from family and friends
3Being in the wrong place at the wrong time
4Entrepreneur gets worn-out and/or underestimated the time requirements
5Family pressure on time and money commitments
6Pride
7Lack of market awareness
8The entrepreneure falls in love with the product/business
9Lack of financial responsibility and awareness
10Lack of a clear focus
11Too much money
12Optimistic/Realistic/Pessimistic
 Businesses with Best Rate of Success After Fifth Year
1Religious Organizations
2Apartment Building Operators
3Vegetable Crop Productions
4Offices & Clinics of Medical Doctors
5Child Day Care Services
 Business with Worst Rate of Success After Fifth Year
1Plumbing, Heating, Air Conditioning
2Single-Family Housing Construction
3Grocery Stores
4Eating Places
5Security Brokers and Dealers
6Local Trucking
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statistics on startup company failure rates ? what industry has the highest start up failure rate ? what percent of companies go bankrupt in their first year ? start-up company failure rates by industry ? what types of companies businesses fail go out of business bankrupt the most highest ?

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