Top reasons startups fail

Mohamed Alaa El-Din
2 Min Read

Entrepreneurship is one of the leading industries in the international market and the Egyptian market in particular, but a large percentage of startup companies fall before they reach advanced stages of growth. According to some international reports, only 10% of the emerging companies succeed.

CB Insights Foundation says that the main reasons why startups fail is a lack of choosing the appropriate service for the market, finding that 42% of companies failed for offering services the market does not need.

Statistics also showed that 23% of startups fall due to bad timing for launching products, while 18% fail due to miscalculation of price and cost.

Info Graph by Daily News Egypt

The weakness of the services themselves could also force companies to fail. According to the report, 17% of companies suffer this problem, while 14% of them fall due to the market itself being weak. In addition, 8% of startups suffer due to legal problems.

Another report by the Global Entrepreneurship Development Institute (GEDI) has ranked Egypt 13th across the Middle East and North Africa in the entrepreneurship industry, and 81st globally.

According to the report, the United States is leading the world in that industry. The per capita share of the world’s gross domestic product (GDP) is $52,6700 in the USA. Chad tailed the list, ranking at 137th, with a per capita share of the world’s GDP at just $2,489.

The United Arab Emirates ranked first in the Arab world, coming in at 19th in the world, with a per capita GDP of $46,600, while Botswana ranked first in Africa and the 52nd in the world, with a per capita share of $15,200.


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