Question

According to research, between 50-90 percent of all new businesses fail within five years due to:

a. Lack of innovation
b. Poor financial management
c. Market saturation
d. All of the above

Answer 1

Between 50-90 percent of all new businesses fail within five years due to lack of innovation, poor financial management, and market saturation.

Step-by-step explanation:

According to research, between 50-90 percent of all new businesses fail within five years due to a combination of factors such as lack of innovation, poor financial management, and market saturation.

1. Lack of innovation: When a business fails to innovate and adapt to changing customer preferences and technological advancements, it can struggle to compete in the market.

2. Poor financial management: Inadequate financial planning, inefficient budgeting, and improper risk management can lead to financial difficulties and ultimately, business failure.

3. Market saturation: When a market becomes overcrowded with similar businesses offering similar products or services, it becomes harder for new businesses to gain a competitive edge and attract customers.

All of these factors can contribute to the failure of a new business.