The Bottom Line on Startup Failures

Much-quoted statistics purport to show that new businesses have only a slim chance of succeeding. The truth is rather more complicated
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By Karen E. Klein

Q: Why do so many startups go bust within three years? What reasons are behind these failures? What makes a successful startup? -- H.W., London

A:

The odds are stacked against startups: They suffer a disproportionate failure rate in both boom times and bad. That's the bad news.