Why 99% of the businesses are failing - 5 factors explained

Failed Business Hurts 99% of the businesses are failing if a new entrepreneur starts or launches a new product/service. It happens due to combined probability effect. Probability of a new product failing is 19 out of 20. These figures are not out of the air . Check "What self made millionaires really think , know and do" by Richard Dobbins and Berrie O. Pettman. i.e. probability of success is 1 in 20. Second probability to consider is as below - About 80 % of the men getting into business are out of the business in 5 year or less. ie. probability of success is 20 in 100 or 1 in 5. Combined probability of success is 1/20 multiplied by 20/100 = 0.01 i.e. 1 in hundred.

Are there any other factors ? Think of it if you can. I feel there can be few critical points we are missing. Don't you think so ? It would be better if you can think of it yourself.

Though there is a research available on above factors, below one are obvious & thus probably I have not come across any research article. I you are aware do comment.

Experience of Entrepreneur: Consider entrepreneur who has professional corporate experience starting a business verses one having no or non corporate experience. People starting business in forties succeed better.
Access to Capital: Naturally inefficient businesses should close. But in reality it do not happen. There is a role over of losses which can happen endlessly. Don't believe me ? Go to banks and ask them frankly how many NPA's they are having. These are typically businesses. We are aware of few due to media attention given to billion dollar dot com companies and their billion dollar depts.
Availability of Resources Resource availability is actually supposed to be equal for all businesses. And it is so . Almost every nation and national leaders ensure it happens. But is it so across the boundary ? Today businesses are competing internationally. Quality & cost of resources differ across nations. Take this opportunity to comment how is your nation better and why.

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