50 million new startups are established every year. That means, on average, 137,000 startups are launched every day. However, only 10% can sustain themselves in the long run.
First-time founders have a startup success rate of 18%. While, the business owners who failed in the past have a slightly higher startup success rate. On the other hand, business owners who have had a successful startup in the past have a success rate of around 30%.
Here are further reasons that contribute to the failure of a startup:
- Lack of product demand: 34%
- Marketing Problems: 22%
- Team Problems: 18%
- Financial Problems: 16%
- Technical Problems: 6%
- Legal Problems: 2%
- Operational Problems: 2%
82% Of Small Business Startups Fail Because Of Cash Flow Mismanagement
Chain of Action
Reference
Kumar, N. (2025, January 1). Startup Statistics 2025 (Numbers & Success Rate). DemandSage. https://www.demandsage.com/startup-statistics/