The One Reason Most Small Businesses Fail. And No, It Isn’t Money

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We’ve all heard the U.S. Bureau of Labor stats: 20% of small businesses fail in the first twelve months, and 50% in the first five years. They’re real numbers, but the commonly cited reasons are not why businesses actually fail.

The SBA’s SCORE program claims the number one reason is cash flow; 82% can’t pay this month’s bills and just turn in the keys. Other researchers, including the National Federation of Independent Businesses (NFIB) repeat this claim and then add management issues and ineffective planning as the second and third reasons business owners punch out. We’ve all heard a dozen more.

Why

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