AmiSight 12/10: Why Most New Businesses Fail—and What Entrepreneurs Miss
- Ami Kassar
- 2 days ago
- 1 min read
With only half of new businesses surviving two years, and only one-third lasting five years, entrepreneurs could use the advice of experts who have been there and done that.
The Wall Street Journal ranked the top 10 reasons new businesses fail based on input from such experts.
While “growing too quickly,” “lack of experience” and “lack of market” unsurprisingly made the list, other tips centered around softer skills. For example, too much passion doesn’t necessarily seem like a bad thing for a new entrepreneur. But the pride and identity associated with the business can often muddy the waters when it comes to making tough decisions.
Being too stubborn tops the list as, ultimately, many small-business failures are a matter of poor leadership. Possibly tied to having too much passion, many entrepreneurs insist on having complete control, refusing others’ suggestions, eventually sinking their own ship.
