{"id":28977,"date":"2025-03-25T15:09:50","date_gmt":"2025-03-25T23:09:50","guid":{"rendered":"https:\/\/trc-parus.ru\/?p=28977"},"modified":"2025-03-26T04:00:40","modified_gmt":"2025-03-26T12:00:40","slug":"how-long-businesses-survive-and-why-they-fail","status":"publish","type":"post","link":"https:\/\/trc-parus.ru\/blog\/how-long-businesses-survive-and-why-they-fail\/","title":{"rendered":"How Long Businesses Survive and Why They Fail"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"28977\" class=\"elementor elementor-28977\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-177d4c6 e-flex e-con-boxed e-con e-parent\" data-id=\"177d4c6\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7de33b8 elementor-widget elementor-widget-text-editor\" data-id=\"7de33b8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div>\n<p class=\"break-words\">The journey of a business from inception to longevity is a brutal test of endurance. In the U.S.A., nearly 20% of new ventures don\u2019t make it past their first year, and over two decades, only one in five (20%) survive.&nbsp;<\/p>\n<p class=\"break-words\">What determines which companies thrive while others fade? From the resilient farms of rural America to the volatile tech startups of Silicon Valley, survival rates reveal a story of grit, adaptation, and sometimes, sheer luck.&nbsp;<\/p>\n<p class=\"break-words\">This article covers the numbers behind business lifespans and why half vanish within five years, why some industries outlast others, and what separates the casualties from the champions.<\/p>\n<\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1a86c84 elementor-widget elementor-widget-heading\" data-id=\"1a86c84\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Business Survival Rate Statistics<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-4ed1bd8 e-flex e-con-boxed e-con e-parent\" data-id=\"4ed1bd8\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-77915e4 elementor-widget elementor-widget-text-editor\" data-id=\"77915e4\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p data-pm-slice=\"1 1 []\">There are over <a href=\"https:\/\/trc-parus.ru\/blog\/the-number-of-businesses-in-the-usa-by-industry-in-2025\/\">30 million businesses in the USA<\/a>. Data from the U.S. Bureau of Labor Statistics and other research sources indicate the following survival rates:<\/p><ul data-spread=\"false\"><li><p><strong>20% of businesses close within the first year<\/strong><\/p><\/li><li><p><strong>50% fail within five years<\/strong><\/p><\/li><li><p><strong>65% do not last beyond ten years<\/strong><\/p><\/li><li><p><strong>Only 25% survive for 15 years or more<\/strong><\/p><\/li><li><p><span style=\"background-color: transparent; font-size: 16px; color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; text-align: var(--text-align);\"><b>50% of small businesses are home-based<\/b><\/span><\/p><\/li><li><p><b><\/b><b style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, 'Helvetica Neue', Arial, 'Noto Sans', sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji';\">42% of founders cite &#8220;no market need&#8221; as the top reason for failure.<\/b><\/p><\/li><\/ul><p>While these figures provide a general overview, survival rates vary significantly based on industry and company size.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ae0175e elementor-widget elementor-widget-heading\" data-id=\"ae0175e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Myth That Most Businesses Fail Within aYear<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-69ba812 elementor-widget elementor-widget-text-editor\" data-id=\"69ba812\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"\" data-start=\"0\" data-end=\"220\">The idea that <span data-start=\"14\" data-end=\"54\">most businesses fail within one year<\/span> is a <span data-start=\"60\" data-end=\"77\">misconception<\/span>\u2014actual data shows that about <span data-start=\"107\" data-end=\"157\">80% of new businesses survive their first year<\/span> in the U.S. However, this myth persists for several reasons:<\/p><h3 class=\"\" data-start=\"222\" data-end=\"281\"><strong data-start=\"226\" data-end=\"279\">Why People Think Most Businesses Fail in One Year<\/strong><\/h3><ol data-start=\"283\" data-end=\"1475\"><li class=\"\" data-start=\"283\" data-end=\"520\"><p class=\"\" data-start=\"286\" data-end=\"520\"><span data-start=\"286\" data-end=\"331\">Confusion Between &#8220;Closing&#8221; and &#8220;Failing&#8221;<\/span> \u2013 Not all businesses that close in the first year fail due to financial struggles. Some owners voluntarily shut down due to personal reasons, better job opportunities, or market changes.<\/p><\/li><li class=\"\" data-start=\"522\" data-end=\"795\"><p class=\"\" data-start=\"525\" data-end=\"795\"><span data-start=\"525\" data-end=\"569\">High Failure Rates in Certain Industries<\/span> \u2013 While <span data-start=\"578\" data-end=\"622\">most businesses survive their first year<\/span>, some industries\u2014such as <span data-start=\"648\" data-end=\"690\">restaurants, retail, and tech startups<\/span>\u2014do have <span data-start=\"699\" data-end=\"729\">higher early failure rates<\/span>, which may contribute to the perception that most fail quickly.<\/p><\/li><li class=\"\" data-start=\"797\" data-end=\"1022\"><p class=\"\" data-start=\"800\" data-end=\"1022\"><span data-start=\"800\" data-end=\"844\">Misinterpretation of Business Statistics<\/span> \u2013 People often misquote failure rates. While <span data-start=\"890\" data-end=\"935\">20% of businesses close in the first year<\/span>, this does <span data-start=\"947\" data-end=\"954\">not<\/span> mean 80% fail immediately\u2014many continue for years before closing.<\/p><\/li><li class=\"\" data-start=\"1024\" data-end=\"1244\"><p class=\"\" data-start=\"1027\" data-end=\"1244\"><span data-start=\"1027\" data-end=\"1048\">Survivorship Bias<\/span> \u2013 Successful businesses get more attention, while failed ones disappear quietly. This can lead people to believe that the majority of businesses fail quickly, even if they actually last longer.<\/p><\/li><li class=\"\" data-start=\"1246\" data-end=\"1475\"><p class=\"\" data-start=\"1249\" data-end=\"1475\"><span data-start=\"1249\" data-end=\"1271\">Media Exaggeration<\/span> \u2013 Sensational stories about dramatic business failures spread quickly, reinforcing the idea that failure is the norm. In reality, <span data-start=\"1402\" data-end=\"1441\">most businesses last multiple years<\/span>, even if they eventually close.<\/p><\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fbb58f2 elementor-widget elementor-widget-heading\" data-id=\"fbb58f2\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Survival of Startups vs. Established Businesses<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0bf2add elementor-widget elementor-widget-text-editor\" data-id=\"0bf2add\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div><p class=\"break-words\">Startups face steep odds\u201420% fail within their first year, 50% by year five, and only 30% reach a decade, per U.S. Bureau of Labor Statistics. Cash flow woes (38%) and lack of market need (35%) are top killers. Experience helps\u2014serial entrepreneurs succeed 30% of the time versus 18% for first-timers.<\/p><p class=\"break-words\">Established businesses fare better\u2014post-five years, their annual failure rate drops to 5-7%, with 65% surviving a decade. Brand power (Coca-Cola: $98 billion market cap, 2024) and cash reserves ($2.1 trillion for S&amp;P 500, 2023) give them an edge.\u00a0<\/p><p class=\"break-words\">But stagnation kills\u2014Kodak and Blockbuster tanked missing digital shifts, while Netflix soared to $240 billion by 2024. Adaptation trumps longevity.<\/p><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c17ec10 elementor-widget elementor-widget-heading\" data-id=\"c17ec10\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Number of New Businesses Per Year &amp; Survival<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e77b0af elementor-widget elementor-widget-text-editor\" data-id=\"e77b0af\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p data-pm-slice=\"1 1 []\">In 2023, the United States experienced a record-breaking 5,481,437 new business applications, representing an 8.7% increase from the previous year.\u00a0 <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem]\">In 2024, the number of new business applications decreased by 4.77% to 5.21 million.<\/span>\u00a0<\/p><p data-pm-slice=\"1 1 []\">Over the past five years, an average of approximately 4.7 million new business applications have been filed annually, reflecting strong and sustained entrepreneurial activity.<\/p><h4><strong>Survival Rates of New Businesses<\/strong><\/h4><p>The longevity of new businesses varies, with survival rates declining over time:<\/p><ul data-spread=\"false\"><li><p><strong>70% of new businesses survive beyond their first two years.<\/strong><\/p><\/li><li><p><strong>50% of new businesses remain operational after five years.<\/strong><\/p><\/li><li><p><strong>30% of businesses survive beyond ten years.<\/strong><\/p><\/li><li><p><strong>Only 25% of businesses are still active after 15 years.<\/strong><\/p><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bb975e9 elementor-widget elementor-widget-text-editor\" data-id=\"bb975e9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"\" data-start=\"0\" data-end=\"116\">Here is a table showing the average lifespan of new businesses by industry, based on available survival rate data:<\/p><div class=\"overflow-x-auto contain-inline-size\"><table data-start=\"118\" data-end=\"894\"><thead data-start=\"118\" data-end=\"239\"><tr data-start=\"118\" data-end=\"239\"><th data-start=\"118\" data-end=\"145\"><strong data-start=\"120\" data-end=\"132\">Industry<\/strong><\/th><th data-start=\"145\" data-end=\"177\"><strong data-start=\"147\" data-end=\"176\">Average Business Lifespan<\/strong><\/th><th data-start=\"177\" data-end=\"207\"><strong data-start=\"179\" data-end=\"206\">Five-Year Survival Rate<\/strong><\/th><th data-start=\"207\" data-end=\"239\"><strong data-start=\"209\" data-end=\"235\">Ten-Year Survival Rate<\/strong><\/th><\/tr><\/thead><tbody data-start=\"361\" data-end=\"894\"><tr data-start=\"361\" data-end=\"422\"><td>Health Care &amp; Social Assistance<\/td><td>10+ years<\/td><td>60%<\/td><td>40%<\/td><\/tr><tr data-start=\"423\" data-end=\"482\"><td>Real Estate &amp; Rental Leasing<\/td><td>8\u201310 years<\/td><td>55%<\/td><td>35%<\/td><\/tr><tr data-start=\"483\" data-end=\"533\"><td>Finance &amp; Insurance<\/td><td>8\u201310 years<\/td><td>55%<\/td><td>35%<\/td><\/tr><tr data-start=\"534\" data-end=\"585\"><td>Educational Services<\/td><td>8\u201310 years<\/td><td>55%<\/td><td>35%<\/td><\/tr><tr data-start=\"586\" data-end=\"649\"><td>Professional &amp; Technical Services<\/td><td>7\u20139 years<\/td><td>50%<\/td><td>30%<\/td><\/tr><tr data-start=\"650\" data-end=\"693\"><td>Manufacturing<\/td><td>7\u20139 years<\/td><td>50%<\/td><td>30%<\/td><\/tr><tr data-start=\"694\" data-end=\"736\"><td>Construction<\/td><td>6\u20138 years<\/td><td>45%<\/td><td>25%<\/td><\/tr><tr data-start=\"737\" data-end=\"779\"><td>Retail Trade<\/td><td>5\u20137 years<\/td><td>40%<\/td><td>20%<\/td><\/tr><tr data-start=\"780\" data-end=\"835\"><td>Hospitality &amp; Restaurants<\/td><td>4\u20136 years<\/td><td>35%<\/td><td>15%<\/td><\/tr><tr data-start=\"836\" data-end=\"894\"><td>Transportation &amp; Warehousing<\/td><td>4\u20136 years<\/td><td>35%<\/td><td>15%<\/td><\/tr><\/tbody><\/table><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3c3d044 elementor-widget elementor-widget-heading\" data-id=\"3c3d044\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Larger Companies and the S&amp;P 500<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7153e19 elementor-widget elementor-widget-text-editor\" data-id=\"7153e19\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p data-start=\"44\" data-end=\"163\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem]\">The S&amp;P 500 Index comprises 500 leading publicly traded companies in the United States, serving as a benchmark for the overall performance of large-cap U.S. equities.<\/span> <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem]\">Over time, the composition of this index changes due to various factors, reflecting the dynamic nature of the business environment.<\/span><\/p><p data-start=\"165\" data-end=\"204\"><strong data-start=\"165\" data-end=\"204\">Average Tenure of S&amp;P 500 Companies<\/strong><\/p><ul data-start=\"206\" data-end=\"514\"><li data-start=\"206\" data-end=\"361\"><p data-start=\"208\" data-end=\"361\"><strong data-start=\"208\" data-end=\"241\">Historical Decline in Tenure:<\/strong> <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem]\">In 1965, the average tenure of a company in the S&amp;P 500 was 33 years. This duration decreased to 20 years by 1990 and is projected to shrink to 14 years by 2026.<\/span>\u00a0<\/p><\/li><li data-start=\"363\" data-end=\"514\"><p data-start=\"365\" data-end=\"514\"><strong data-start=\"365\" data-end=\"394\">Current Average Lifespan:<\/strong> <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem]\">As of recent analyses, the average lifespan of a company on the S&amp;P 500 is approximately 18 years.<\/span>\u00a0<\/p><\/li><\/ul><p data-start=\"516\" data-end=\"534\"><strong data-start=\"516\" data-end=\"534\">Turnover Rates<\/strong><\/p><ul data-start=\"536\" data-end=\"836\"><li data-start=\"536\" data-end=\"683\"><p data-start=\"538\" data-end=\"683\"><strong data-start=\"538\" data-end=\"559\">10-Year Turnover:<\/strong> <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem]\">Over a typical 10-year period, approximately 36% of S&amp;P 500 constituents are replaced.<\/span><\/p><\/li><li data-start=\"685\" data-end=\"836\"><p data-start=\"687\" data-end=\"836\"><strong data-start=\"687\" data-end=\"710\">Future Projections:<\/strong> <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem]\">If current trends persist, it is estimated that about 75% of the companies currently in the S&amp;P 500 will be replaced by 2027.<\/span><\/p><\/li><\/ul><p data-start=\"838\" data-end=\"870\"><strong data-start=\"838\" data-end=\"870\">Factors Influencing Turnover<\/strong><\/p><p data-start=\"872\" data-end=\"947\">Several factors contribute to the turnover of companies within the S&amp;P 500:<\/p><ol data-start=\"949\" data-end=\"1415\"><li data-start=\"949\" data-end=\"1067\"><p data-start=\"952\" data-end=\"1067\"><strong data-start=\"952\" data-end=\"981\">Mergers and Acquisitions:<\/strong> <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem]\">Companies may be acquired or merge with others, leading to their removal from the index.<\/span><\/p><\/li><li data-start=\"1069\" data-end=\"1184\"><p data-start=\"1072\" data-end=\"1184\"><strong data-start=\"1072\" data-end=\"1098\">Financial Performance:<\/strong> <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem]\">Companies that underperform financially may be delisted from the S&amp;P 500.<\/span><\/p><\/li><li data-start=\"1186\" data-end=\"1304\"><p data-start=\"1189\" data-end=\"1304\"><strong data-start=\"1189\" data-end=\"1218\">Technological Disruption:<\/strong> <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem]\">Advancements in technology can render existing business models obsolete, affecting a company&#8217;s position in the index.<\/span><\/p><\/li><li data-start=\"1306\" data-end=\"1415\"><p data-start=\"1309\" data-end=\"1415\"><strong data-start=\"1309\" data-end=\"1329\">Market Dynamics:<\/strong> <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem]\">Shifts in consumer preferences and global economic conditions can impact a company&#8217;s relevance and profitability.<\/span><\/p><\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-abbeccb elementor-widget elementor-widget-heading\" data-id=\"abbeccb\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Industry-Specific Survival Rates<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-37bf3f2 elementor-widget elementor-widget-text-editor\" data-id=\"37bf3f2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p data-pm-slice=\"1 3 []\">Certain industries have higher survival rates due to stable demand, while others face increased risk due to competitive pressures and market volatility.<\/p><ul data-spread=\"false\"><li><p><strong>Industries with Higher Survival Rates:<\/strong> Health care, education, and real estate tend to have more stable business models and longer lifespans.<\/p><\/li><li><p><strong>Industries with Lower Survival Rates:<\/strong> Restaurants, retail, and technology startups often struggle due to high competition, evolving consumer preferences, and significant operational costs.<\/p><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1769271 elementor-widget elementor-widget-heading\" data-id=\"1769271\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Most Common Causes of Business Failure<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e62ced8 elementor-widget elementor-widget-text-editor\" data-id=\"e62ced8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div>\n<p class=\"break-words\">Businesses don\u2019t just die\u2014they\u2019re often killed by avoidable mistakes. Here\u2019s a quick rundown of the top reasons companies fail, backed by the latest stats.<\/p>\n<h4>1. No Market Need<\/h4>\n<p class=\"break-words\">The top reason startups collapse? No one wants what they\u2019re selling. <strong>42% of failed startups<\/strong> cite &#8220;no market need&#8221;. Fundera\u2019s 2024 data shows <strong>38% of small businesses<\/strong> flop for the same reason\u2014building without demand.<\/p>\n<h4>2. Running Out of Cash<\/h4>\n<p class=\"break-words\">Cash is king, and when it\u2019s gone, so is the business. <strong>29% of startups<\/strong> run dry , while the SBA says <strong>82% of small business failures<\/strong> involve cash flow woes (2024). <strong>40% of first-year closures<\/strong> tie to this.<\/p>\n<h4>3. Wrong Team, Bad Execution<\/h4>\n<p class=\"break-words\">A weak team sinks even strong ideas. <strong>19% of startups<\/strong> fail due to poor leadership or skills. The SBA notes <strong>23% of closures<\/strong> stem from management missteps (2024). Newbies fare worse\u2014<strong>30% higher failure rate<\/strong> without experience.<\/p>\n<h4>4. Outpaced by Competition<\/h4>\n<p class=\"break-words\">Rivals can crush you. <strong>18% of startups<\/strong> get outmaneuvered, and <strong>19% of small businesses<\/strong> can\u2019t keep up. In tech, <strong>25%<\/strong> lose to faster giants.<\/p>\n<h4>5. Pricing and Cost Issues<\/h4>\n<p class=\"break-words\">Bad pricing or high costs doom profits. <strong>15% of startups<\/strong> struggle here. <strong>28% of small businesses<\/strong> misjudge expenses within five years, with <strong>20% of restaurants<\/strong> hit by thin margins.<\/p>\n<\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8b8dd0f elementor-widget elementor-widget-heading\" data-id=\"8b8dd0f\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Factors That Support a Lasting Business<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7073543 elementor-widget elementor-widget-text-editor\" data-id=\"7073543\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p data-pm-slice=\"1 1 []\">Despite the risks, many businesses achieve long-term success by focusing on key factors:<\/p><ul data-spread=\"false\"><li><p><strong>Effective Leadership<\/strong> \u2013 Strong management and strategic decision-making contribute to business sustainability.<\/p><\/li><li><p><strong>Financial Planning<\/strong> \u2013 Proper budgeting and cash flow management help businesses navigate economic challenges.<\/p><\/li><li><p><strong>Product-Market Fit<\/strong> \u2013 Companies that address real customer needs have a higher chance of long-term survival.<\/p><\/li><li><p><strong>Innovation and Adaptability<\/strong> \u2013 Businesses that embrace new technologies and trends remain competitive.<\/p><\/li><li><p><strong>Customer Retention<\/strong> \u2013 A loyal customer base helps stabilize revenue and ensures continued growth.<\/p><\/li><\/ul><h3>\u00a0<\/h3>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The journey of a business from inception to longevity is a brutal test of endurance. In the U.S.A., nearly 20% of new ventures don\u2019t make it past their first year, and over two decades, only one in five (20%) survive.&nbsp; What determines which companies thrive while others fade? From the resilient farms of rural America [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":29014,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[44],"tags":[],"class_list":["post-28977","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-payments-market"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Long Businesses Survive and Why They Fail<\/title>\n<meta name=\"description\" content=\"This article covers the statistics of business lifespans and why half fail within five years and why some industries stay in business longer.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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