What is the Truth About the Small Business Failure Rate?

And What Can Small Businesses Do To Succeed

70% of small businesses fail OVER TIME

20% of small businesses fail in their first year

30% of small business fail in their second year

50% of small businesses fail after five years in business

Finally, 70% of small business owners fail in their 10th year in business.

According to Fundera

The Good News

Women-Owned and Minority-Owned Businesses are Increasing and Thriving

What small businesses can do to succeed

and make it past that 10 year small business failure rate mark:

#1 An Airtight Business Plan & Enough Capital to Operate

Research, organization and proper planning are everything. But being realistic about how much you will need the first year will help you survive.

#2 The Ability To Identify A True Market Need

Is this a passion project or is there a need for this product or service? Does it solve a problem? If it really doesn’t, people won’t buy into it.

#3 Being Able To Calculate Profitable Pricing

Pricing too high or too low can bring different problems.

#4 The Right Team

You will need a team of people who are unified in the goal of the business and have a diverse set of talents to carry through all the different aspects of business.

#5 Competition

Competition is an obstacle in every industry but the ability to adapt and find the unique quality of your product or service will set you apart. Thinking outside the proverbial box helps, too.


You need to create awareness for your brand. You need a website. You need to optimize that website with effective SEO strategies. You need social media. A website helps you build credibility and a reputation for your brand.


Everyone looks online to check out a business before engaging with them. They look for reviews and information to make sure you offer what they need. Social media helps you communicate with your clients and potential clients and brings attention to what your business does.


Call us and we can help you beat the Small Business Failure Rate