posted Jul 17, 2013, 9:30 AM by amanzo@seowebpower.com
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updated Jul 28, 2013, 12:32 PM by David Khorram
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| Industry | Percent Still Operating After 4 Years | | Finance Insurance and Real Estate | 58 % | | Education and Health | 56 % | | Agriculture | 56 % | | Services | 55 % | | Wholesale | 54 % | | Mining | 51 % | | Manufacturing | 49 % | | Construction | 47 % | | Retail | 47 % | | Transportation, Communication and Utilities | 45 % | | Information | 37 % |
| 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 | Percentage of Failures | Specific Pitfalls | | 1 | Incompetence | 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 | | 2 | Unbalanced Experience or Lack of Managerial Experience | 30 % | Poor credit granting practices | | | | | Expansion too rapid | | | | | Inadequate borrowing practices | | 3 | Lack of Experiences in line of goods or services | 11 % | Carry inadequate inventory | | | | | No knowledge of suppliers | | | | | Wasted advertising budget | | 5 | Neglect, fraud, disaster | 1 % | |
| | 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 entrepreneure falls in love with the product/business | | 9 | Lack of financial responsibility and awareness | | 10 | Lack of a clear focus | | 11 | Too much money | | 12 | Optimistic/Realistic/Pessimistic |
| | Businesses with Best Rate of Success After Fifth Year | | 1 | Religious Organizations | | 2 | Apartment Building Operators | | 3 | Vegetable Crop Productions | | 4 | Offices & Clinics of Medical Doctors | | 5 | Child Day Care Services | | | Business with Worst Rate of Success After Fifth Year | | 1 | Plumbing, Heating, Air Conditioning | | 2 | Single-Family Housing Construction | | 3 | Grocery Stores | | 4 | Eating Places | | 5 | Security Brokers and Dealers | | 6 | Local Trucking |
Tags:
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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