The Business Assessment that leads to Success 25% of all start-ups fail within one year, and 50% of businesses fail within 5 years. Staticbrain.com states that “incompetence” is the number one reason for business failure. I know this seems harsh, but it isn’t too surprising. It is difficult to be good at everything. Most likely, a business is good at making a product or providing a service, but might not be good at planning, finance, accounting, pricing, taxes, and management.