Small Enterprise
Smart Investment Image Credit: Small Enterprise
Smart Investment Image Credit: Small Enterprise

Smart Investment

Smart Investment

Sumaiya Khan

Why Do Most Startups Fail?

Most startups run into troubled waters during their first year or mostly by the second year of establishment. What could be the reason behind such a large number of failed ideas? There are numerous reasons that either ‘click’ or ‘kick’ the success of a startup and their ideas. For an establishment to penetrate into the market, a lot of research, planning and deep understanding of the business is a prerequisite. To be a success in the competitive market, be it a monopoly or perfec competition, requires a lot of intrepidity. Here is the list of bullets, that not only make startups bleed but ultimately succumb to their deadly end. These factors can be divided broadly into two

Internal Factors

External Factors

Internal Factors

Absence or erroneous business plan-

One of the major reasons for the failure of start-ups is either absence of business plan or faulty business plan. Either way, it is suicidal. Majority failed start-ups have no idea about the market, competition, customer’s preferences and supply chain management. Start-ups assume that their ideas are brilliant and will attract customers automatically. Start-ups fail to figure out how they will reach their customers? How they will maintain the inflow of the customers? What will be the cost of gaining these customers? What is plan B if


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