This Is Why Start Ups and Small Businesses Fail

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Entrepreneurs and their start ups make the business world go round. But starting and running a new company is not and easy task. Some researches show that only 1 in every 12 start ups continue operations in the┬álong run. This would mean that more than 90% of all starting companies fail, which also mean that less than 10% are successful. So, if you are going to start a company, your chances are not that great… But why does this happen? Well, here we will show you some of the most common reasons. Below is a cool infographic on which you can see pretty interesting information on the matter. The Startup Genome Project’s research is based on data collected from more than 3200 starting companies and gives a clear picture about the most common reasons for failure. You can see some rally interesting things here. For example, rising too much money turns out to be a risk for a starting company, because this can cause a premature growth of the business. Fast growth can be very dangerous for your business… Have a look below.

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Why Start Ups Fail?

See why exactly start ups fail.

See why exactly start ups fail.

According to the infographic, the number one reason for start up failures is premature scaling. The guys from the Startup genome thing, that this brings many other problems with itself which finally lead to closing the business.

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