Final answer:
The primary reasons why many new businesses fail include poor financial management, inadequate market research, and limited customer base.
Step-by-step explanation:
In a market economy, there are several reasons why new businesses fail. Some common reasons include poor financial management, inadequate market research, and limited customer base.
Poor financial management can lead to a lack of funds to cover expenses or invest in growth, making it difficult for a business to survive. Inadequate market research can result in a misalignment between the products or services offered and what target customers actually want or need. A limited customer base means there are not enough customers to generate sufficient sales revenue.
Overall, a combination of these factors can contribute to the failure of a new business.