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What is the #1 reason why entrepreneurs fail?

This thread could save a ton of headaches, sweat, and tears. Thanks for participating.

38 Replies

Jeffrey Gross
4
0
Jeffrey Gross Entrepreneur
Managing Member of intellectual property firm, Entrepreneur, P/T Musician
I don't think I could come up w/ ONE top reason. But I can come up w/ three, at least as a reflection of what I've seen.
1) Bad idea. (Idea could be bad in itself, or simply mistimed.)
2) Bad execution. (Many permutations: You hired the wrong people. Your marketing failed to reach potential buyers. Etc.)
3) Undercapitalization.

Joe Albano, PhD
2
0
Joe Albano, PhD Advisor
Using the business of entrepreneurialism to turn ideas into products and products into sustainable businesses.
Falling in love with building a product or service that no one wants to buy or, to put it more formally, "no market need". Here's a list of 19 more reasons startups fail.
David Robinson
0
1
David Robinson Advisor
Investor, Innovation & Entrepreneurial Consultant
https://www.linkedin.com/pulse/10-mistakes-avoid-your-startup-david-c-robinson?trk=mp-author-card and https://www.linkedin.com/pulse/top-5-mistakes-growth-companies-make-what-you-can-do-avoid-robinson?trk=mp-author-card
Dimitry Rotstein
3
0
Dimitry Rotstein Entrepreneur
Head of R&D at SafeZone
Here's my take on this question:
A startup's life can be separated into 3 stages, each having its own primary reason for failure:
1. Idea stage (from conception to go-to-market) - the main reason for failure at this stage is the team breakup (which can have many reasons in its turn)
2. Product stage (fromgo-to-marketto product-market-fit) - the main reason for failure, simply put, is when you discover that you've built something no one wants (or at least not enough people want bad enough to pay for it or even use it for free)
3. Growth stage - the most common reason for failure is premature scaling, building the company too large to sustain with revenues, i.e. the growth is slower than expected and eventually you run out of money and investors don't want to invest more.

Tanya Prive
3
0
Tanya Prive Entrepreneur
CoFounder and CEO: 1000 Angels and CoFoundersLab
Failure is achieved only when one gives up. Therefore the number one cause is because someone threw the towel in. Other secondary reasons are lack of product market fit, no financing etc
Arthur Lipper
3
0
Arthur Lipper Entrepreneur
Chairman of British Far East Holdings Ltd.
The #1 reason for entrepreneurship failures to raise sufficient capital is the lack of realistic and vetted planning. They fail to define success and indicate a clear way of achieving it.
Donavon Urfalian
1
0
Donavon Urfalian Entrepreneur
A.I. Engineer / Entrepreneur / Founder & CEO @ Umazed / Kodo Startups
Hi Manoj. There are some good answers given above. I think of two reasons. First, the Entrepreneur is not a real entrepreneur because they are not hard working and high performance. Second, they imagine a problem and create a synthetic solution that there is no need for and try to force a market that won't exist. So, then, they failed because they don't have the talent and work ethic, and/or they create products and services that doesn't solve a real world problem that people want a solution for.
Joe Albano, PhD
0
0
Joe Albano, PhD Advisor
Using the business of entrepreneurialism to turn ideas into products and products into sustainable businesses.
These questions always seem to raise the issue of raising money and outside investment. What about the role of bootstrapped companies in the entrepreneurial ecosystem?
Martin Omansky
0
0
Martin Omansky Entrepreneur
Independent Venture Capital & Private Equity Professional
Many specific reasons, but the most general reason, in my view, is the naivete' of the founders.
Steve Owens
3
0
Steve Owens Entrepreneur • Advisor
Finish Line - A Better Way for Small Companies to Develop Products
Believing that all you need is a good idea.
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