Click here to read download the full document entitled “What Kills Startups?” by Cayenne Consulting.

Brief – The document assess why over 50% fail within their first five years. In a study of firms formed in 1998, only 44% were still around only four years later, according to the Small Business Administration. In fact, statistics show that, In any given year (among firms with employees) almost as many firms close or go bankrupt, as there are new startups:

Cayenne’s conclusion is that most closures – even those that do not end in bankruptcy – are the result of unforeseen circumstances. It seems that Murphy’s Law affects entrepreneurs disproportionately. Often, these disasters could have been avoided if company management had paid more heed to the principles of risk management.