Why so many businesses fail in their first year

According to the United States’ Small Business Administration, about 20% of businesses fail in the first year, 50% fail within five years, and only 33% survive by the 10th year.

These statistics reveal that keeping a business going is not easy. But if you are a current or aspiring entrepreneur, this shouldn’t kill your entrepreneurial spirit. Instead, you need to understand the major reasons why small businesses fail, and learn from these mistakes. In this episode, RIABU’s Simon Littlewood and Mark Laudi elaborate on some factors that can cause cash flow problems — a major reason for business failure. Read more about this topic here.