Why Do Many Start-ups Fail?

[Suba]

Even though there are many successful startup businesses, according to a survey, more start-up businesses fail. The failure of business start-ups should be a lesson for anyone who is going to run a business. According to the survey, the biggest failure factor is lack of capital so that businesses cannot make a profit.

According to the Ministry of Communication and Informatics (Kemenkominfo) in early 2023 in Indonesia there were more than 1400 start up businesses but until now only around 10% have survived

Of course there will be many factors that can determine the failure of a start-up company. What do you think they are?

 

[Niyi Briggs]

The first and major challenge of start ups is the lack of capital to set the business on a sound footing. Another reason why start ups easily fail is inability to penetrate into the market.

 

[astutimeliana723]

Indeed, lack of capital is often one of the factors that causes business failure, besides that, bad management or business management can also cause failure. So that a beginner in business besides having to prepare sufficient capital, he also has to learn how to manage a business well.

 

[eldavis]

When it comes to why start-ups fails, there are so many reasons as to this. One common reason is inadequate preparations. Most business owners today do not take out enough time to prepare themselves for their business.

 

[sofiko]

Many startups fail for various reasons. Some of these include insufficient understanding of the market and competitiveness, insufficient preparation and execution of a business plan, insufficient capital and financing, management problems, ineffective marketing strategies, technical or production problems and many others.

 

[Springtime]

Lack of capital is one of the main reasons leading to failure of a start-up. Other factors such as mismanagement, ineffective sales and marketing strategy, lack of proper financial management may also cause the failure.

 

[Smalto]

Even though there are many successful startup businesses, according to a survey, more start-up businesses fail. The failure of business start-ups should be a lesson for anyone who is going to run a business. According to the survey, the biggest failure factor is lack of capital so that businesses cannot make a profit.

According to the Ministry of Communication and Informatics (Kemenkominfo) in early 2023 in Indonesia there were more than 1400 start up businesses but until now only around 10% have survived

Of course there will be many factors that can determine the failure of a start-up company. What do you think they are?

There are numerous factors that could lead to a business failure, one among them is lack of proper management of funds or capitals, failure to properly document every expenditure made in the business.

 

[Heatman]

Even though there are many successful startup businesses, according to a survey, more start-up businesses fail. The failure of business start-ups should be a lesson for anyone who is going to run a business. According to the survey, the biggest failure factor is lack of capital so that businesses cannot make a profit.

According to the Ministry of Communication and Informatics (Kemenkominfo) in early 2023 in Indonesia there were more than 1400 start up businesses but until now only around 10% have survived

Of course there will be many factors that can determine the failure of a start-up company. What do you think they are?

I believe that the main reason why many start-up usually fail is because of lack of adequate planning and always being in a rush to start up something.

 

[Suba]

I believe that the main reason why many start-up usually fail is because of lack of adequate planning and always being in a rush to start up something.

Lack of planning is often caused by a lack of knowledge or skills, so that the implementation of the start-up business will be hampered, or the businessman will not master the product and will not be able to run the business properly.

 

[Starmix]

It is very obvious for those who started a business with insufficient capital to land that way a failure. The customers are very sensitive, they like to buy the items they want in one business center and if it is incomplete, the buyers won't come back. They are not satisfied.

 

[Authenticity101]

One of the main causes of failure in startups is lack of proper planning. Businesses should be planned well right from the beginning. A good plan is where the entrepreneur has taken time to study the market, has done proper calculation of Capital needed and has tested products or conducted surveys among potential customers.

 

[Shavkat]

I strongly believe that it failed because they did not conduct the business feasibility study. It is a study that they can determine if the business in mind is viable or not. If they can do this without any shortcuts, then they can obtain essential and accurate datum.

 

[Bisolami]

When it comes to why start-ups fails, there are so many reasons as to this. One common reason is inadequate preparations. Most business owners today do not take out enough time to prepare themselves for their business.

It is true that some people are not prepared before they start their business and it is not all about capital alone but making the proper research before they start the business

 

[eldavis]

It is true that some people are not prepared before they start their business and it is not all about capital alone but making the proper research before they start the business

Yes Capital is not everything, like you said most businesses fail due to the fact that they do not make proper research. Most business owners today tend to rush into a particular business just cause they heard the business is lucrative.

 

[Blessed19]

One of the things that makes some businesses to fail as start ups is because they fail to follow through their plans and strategy which they made for the business and at times today cannot cut down their expenses.

 

[Heatman]

Lack of planning is often caused by a lack of knowledge or skills, so that the implementation of the start-up business will be hampered, or the businessman will not master the product and will not be able to run the business properly.

You are very correct and is the reason why people should dedicate time to learning about what they want to start up as a business because they will get more knowledge on how to do it.

 

[Suba]

There are numerous factors that could lead to a business failure, one among them is lack of proper management of funds or capitals, failure to properly document every expenditure made in the business.

Of course there will be many factors that influence why startup businesses fail, most of them (business startups) only have a small market, so consumers don't know their products, so start-up businesses can't compete.

 

[Niyi Briggs]

Most startups didn't enter the market with a sound strategy to be competitive. And they enter the market and are overwhelmed. They might have very little allowance to adjust and end up closing down.

 

[Shortie]

When it comes to startups, there are two things I have noticed that make the startup fail and they are not having enough funding and also not having patience as well.

Too many people go into business and create their first startup with only a little amount of funds for it and also believe that they will become successful quickly. Both of these are the wrong way to think and will always result in a startup fail.

 

[eldavis]

Most startups didn't enter the market with a sound strategy to be competitive. And they enter the market and are overwhelmed. They might have very little allowance to adjust and end up closing down.

Yes this is usually the case today, most new businesses we see today, majority of them simply go into them cause they feel others are Making money from it, so they can as well give it a try and make money from it as well.