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Only about half of new businesses survive their first two years, and just one-third make it to five.
The reasons go far beyond bad luck.
A Wall Street Journal analysis breaks down the most common mistakes that quietly derail startups, from growing too fast and running out of cash to internal conflict and founders who refuse to adapt. One cautionary tale follows a comic-frame company that saw sales soar, only to collapse after investing too aggressively in equipment and product variations without a clear focus on profitability.
Experts say many entrepreneurs are undone by avoidable traps: launching without enough industry experience, failing to study whether a real market exists, struggling to raise capital, or tying their personal identity too tightly to the business.
External shocks such as recessions can accelerate the damage, but stubborn leadership and an inability to pivot often deliver the final blow.
The lesson is simple but sobering—sustainable growth, financial discipline and the willingness to listen may matter more than any brilliant idea.
