Reasons Why Most Startup Businesses Fail

It is an apparent fact that most startup entrepreneurs failed in their early years of starting. Many are of the belief that there are a lot of reasons for these failures.

The issue of failure is surely a story of most startup businesses, and this has to do with the kind of action taken by the entrepreneurs.

Before we deeply dwell on the reasons, it’s important to note that one of the major reasons for the failure is the inability to resist the situation by the entrepreneurs.

The beginning of everything is characterized by a lot of difficulties, failures, and challenges. Therefore, the ability to resist and control these without giving up will surely make a business to be stronger.

In essence, it’s unethical to always think in a way many believe to be the major reasons startup entrepreneurs failed in their early years of experience.

People often linked these failures with issues that have to do with lack of adequate capital, inappropriate business plans, and lack of support.

Nevertheless, what I observed leading many startup businesses to failure is nothing but two major things.

Lack of patience and get rich quick syndrome in many instances served as an obstacle to many entrepreneurs.


Moreover, for the purpose of this content, we are going to deeply look into the major reasons startup entrepreneurs failed in order to have a clear understanding.

There are a number of valid reasons but we will try to cover the major ones that many believe to be the reasons for the failure based on the research we conducted.

Therefore for a better understanding, these reasons will be discussed below;




A business plan contains all the business objectives, ideas, and goals to make a startup move forward. Therefore, without an effective business plan, it’s very difficult for a business to succeed.

Many startup businesses make the mistake of starting without a business plan.

It’s crucial to have an effective business plan containing all the business information and objectives.


Poor Management of the business activities is another key factor linked to startup business failure.

Many startup businesses usually start with a weak management team which consequently leads to the failure of most businesses.

There need to have an effective management team for a business to succeed.


Lack of enough capital to fund the business is another key factor that leads to startup failure.

Many startup entrepreneurs have adorable business plans but due to a lack of resources to support their ideas, they usually end up failing in their business.


This reason is linked to two different kinds of support.

The first one is lack of support from the family, as most startup entrepreneurs have their business ideas rejected since from their families instead of getting the support that will make them to move forward.

Rather, there are many instances where startup entrepreneurs innovate business ideas and are discouraged by their families due to so many inappropriate reasons or excuses.

The second aspect linking this reason is government support. Government plays a vital role in supporting startup entrepreneurs with a number of programs.

These programs include; small and medium businesses loans, social development programs, entrepreneurs schemes, and many other programs.

Unfortunately, in most cases, the government does come with new policies that negatively affect startup businesses and consequently lead to many failures.


Despite the fact that most of today’s startup entrepreneurs are characterized by having to get rich quick syndrome through the quest to be like those who spend a long time in the game.

The tendency of startup entrepreneurs to succeed overnight without following the required processes and procedures makes them be impatient and unable to resist the situation.

Thereby making them be reluctant on making money early and failed easily.

Additionally, success is not overnight, therefore patience is required with adequate dedication and persistence to chase the goals.

Finally, overcoming these challenges that often serve as the drawbacks of many startup entrepreneurs, one needs to work smart with effective discipline and objectives.

I hope this article helps you a lot. Don’t hesitate to use the comment box below to ask questions.