Top 6 Reasons Why American Businesses Fail

It’s no secret that most businesses have a tough time surviving in America. In fact, 20% don’t even live to celebrate their first birthday. The following infographic by pinpoints the top six reasons why American businesses fail:

  • 14% don’t know, research or pay attention to their customers
  • 19% are overtaken by their competitors
  • 23% haven’t built the right team
  • 29% run out of money
  • 42% invest in a market that doesn’t need their products/services
  • 82% have problems with their cash flow

Other Key Takeaways

  1. A small business is one that employees fewer than 100 people. By that definition, almost all businesses in America fall under this category. (The limit usually varies; the SBA’s general standard is fewer than 500 employees.)
  2. 50% of businesses fail in their fifth year of life.
  3. Four of the five worst places for small businesses are in California.
Why American Businesses Fail

Why Do Businesses Fail? – Infographic by

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