While roughly 90% of startups ultimately fail, this staggering statistic isn't a mark of shame but a hidden map, revealing that failure is less a destination and more the nearly universal tuition for success in business, education, healthcare, and even our personal lives.
Key Takeaways
- Approximately 20% of new businesses in the United States fail within the first two years of operation, based on data from the U.S. Bureau of Labor Statistics for employer firms tracked from 2013-2023
- In 2022, restaurant failure rates reached 30% within the first year, higher than the average for all industries at 21%, according to HospitalityNet analysis of SBA data
- 42% of businesses fail due to lack of market need, as identified in a CB Insights study analyzing 101 post-mortem reports of failed startups from 2014-2019
- 90% of startups fail overall, with 10% surviving past 10 years, per Forbes analysis of 50+ years data 2023
- 75% of venture-backed startups fail to return principal to investors, Harvard Business School 2022 study on 2000 firms
- No market need accounts for 42% of startup failures, CB Insights 2023 postmortem of 400+ cases
- US high school dropout rate is 5.2% in 2021, leading to academic failure metrics, National Center for Education Statistics
- 40% of college students fail to graduate within 6 years, National Student Clearinghouse 2023
- In STEM fields, 48% of undergraduates switch out or drop due to failure rates, per Harvard study 2022
- 55% of heart failure patients readmitted within 30 days post-discharge, CDC 2022
- Type 2 diabetes treatment failure rate 50% within 5 years, ADA 2023 Standards
- 30% of cancer chemotherapies fail initial response, NCI SEER 2022
- Challenger space shuttle failure due to O-ring seal failure in cold temperatures on January 28, 1986, killing 7 astronauts, NASA Rogers Commission Report
- Three Mile Island nuclear accident 1979 partial meltdown from stuck valve failure, NRC report 99% core damage avoided
- 737 MAX MCAS software failure caused 346 deaths in two crashes 2018-2019, Boeing NTSB final report
Failure is common across startups, businesses, and many other human endeavors.
Academic Failures
- US high school dropout rate is 5.2% in 2021, leading to academic failure metrics, National Center for Education Statistics
- 40% of college students fail to graduate within 6 years, National Student Clearinghouse 2023
- In STEM fields, 48% of undergraduates switch out or drop due to failure rates, per Harvard study 2022
- UK university dropout rate 6.4% in first year 2021/22, HESA data
- 25% of medical students fail licensing exams on first try, USMLE 2023 stats
- Online course completion rate averages 9.4% globally, edX/MIT 2022 study
- 33% of PhD students fail to complete in sciences, Nature 2023 survey
- Bar exam first-time pass rate 67% in 2022 US average, NCBE
- 15% of law students fail out in first year, ABA 2023
- High school failure rate in math proficiency 65% US 2022, NAEP
- 50% of community college students fail remedial courses, Complete College America 2021
- India engineering college failure rate 35% first year, AICTE 2023
- Australia uni attrition 20% first year 2022, Dept of Education
- 28% of MBA students drop due to workload, GMAC 2023 survey
- CPA exam pass rate 45-55% per section 2022, AICPA
- 40% failure in teacher certification exams US, ETS 2023
- Nursing school attrition 30% average, AACN 2022
- 22% of architecture students fail licensure first attempt, NCARB 2023
- Coding bootcamp completion 80% but job placement failure 35%, Course Report 2023
- Germany Abitur failure rate 2.5% but higher in vocational 15%, KMK 2022
- Brazil ENEM university entry failure 70% non-qualifiers, INEP 2023
- China Gaokao failure for top unis 95%, Ministry of Ed 2023
- France Baccalauréat pass rate 91% but resit failure 20%
Academic Failures Interpretation
Behind every sterile percentage point lies a very human story of thwarted effort and systemic friction, painting a global portrait of educational structures that are better at creating hurdles than clearing them.
Business Failures
- Approximately 20% of new businesses in the United States fail within the first two years of operation, based on data from the U.S. Bureau of Labor Statistics for employer firms tracked from 2013-2023
- In 2022, restaurant failure rates reached 30% within the first year, higher than the average for all industries at 21%, according to HospitalityNet analysis of SBA data
- 42% of businesses fail due to lack of market need, as identified in a CB Insights study analyzing 101 post-mortem reports of failed startups from 2014-2019
- UK small business failure rate was 11.5% in 2021, with retail sector at 15.2%, per UK Insolvency Service quarterly statistics Q4 2021
- 29% of failed businesses cite running out of cash as the primary reason, from Harvard Business Review analysis of 2010-2020 failure data
- Construction industry failure rate stands at 25.6% within five years in the EU, Eurostat data 2018-2022
- 65% of retail stores opened in 2020 closed by 2023 due to e-commerce competition, per National Retail Federation report
- In Australia, 60.4% of businesses fail within three years, ASIC data 2019-2022
- Not having the right team causes 23% of startup failures, CB Insights 2023 update on 300+ post-mortems
- US manufacturing firms have a 5-year failure rate of 35.2%, Census Bureau 2017 data
- 90% of e-commerce startups fail within 120 days, per Shopify internal analytics 2021-2023
- Canadian SMEs failure rate hit 14% in 2022 amid inflation, Statistics Canada
- 50% of tech hardware businesses fail due to supply chain issues, Gartner 2022 report
- In India, 80% of startups fail within 18 months, per Inc42 analysis of 2023 data
- Poor marketing leads to 14% of business failures, MarketingProfs survey 2020
- 70% of franchises fail in under 5 years outside US, Franchise Business Review 2021
- Brazil business failure rate 28% in 2022, Serasa Experian data
- 45% of consulting firms fail due to pricing errors, Consulting Success 2023 study
- US hotel failure rate 22% post-COVID 2022, STR Global
- 55% of fashion startups fail from inventory mismanagement, FashionUnited 2021
- Germany SME failure rate 9.8% in 2022, Destatis
- 38% of food delivery startups failed in 2022, McKinsey report
- South Africa business closures 15% in 2023, StatsSA Q1 2023
- 25% failure rate for cleaning service businesses within 3 years, Thumbtack 2022
- Japan corporate bankruptcy rate 0.4% but SME 12% in 2022, Teikoku Databank
- 60% of beverage startups fail from poor distribution, BevNET 2023
- France business failure rate 15% in 2022, INSEE
- 40% of SaaS companies fail due to churn >10%, ProfitWell 2022 metrics
- Italy retail failure rate 18.2% 2021-2022, ISTAT
- 33% of logistics startups bankrupt in 2022 supply crunch, FreightWaves
Business Failures Interpretation
The graveyard of commerce is crowded with stories of unmet market needs, empty coffers, and fumbled execution, proving that while ambition may launch a venture, it's operational reality—from cash flow to customer churn—that ultimately writes its epitaph.
Health Failures
- 55% of heart failure patients readmitted within 30 days post-discharge, CDC 2022
- Type 2 diabetes treatment failure rate 50% within 5 years, ADA 2023 Standards
- 30% of cancer chemotherapies fail initial response, NCI SEER 2022
- Antibiotic failure in pneumonia cases 20-30%, WHO 2023 AMR report
- Knee replacement surgery failure requiring revision 6% at 5 years, AAOS 2022
- 40% of weight loss attempts fail long-term (1+ year), NIH 2023 obesity data
- Organ transplant rejection acute 10-20% first year, UNOS 2023
- IVF success failure rate 70% per cycle under 35yo, CDC ART 2021
- Depression treatment non-response 30-50%, APA 2023 guidelines
- 25% of hip implants fail within 10 years, JBJS 2022 meta-analysis
- Sepsis treatment failure mortality 20-50%, Surviving Sepsis 2023
- 35% of smoking cessation attempts fail within 6 months, CDC 2023
- Alzheimer's drug trials failure rate 99% since 2003, Alz Assoc 2023
- 15% of bariatric surgeries have complications leading to failure, ASMBS 2023
- Hypertension control failure 50% despite treatment, AHA 2023
- 28% graft failure in kidney transplants at 5 years, OPTN 2023
- COPD exacerbation treatment failure 40%, GOLD 2023 report
- 60% of addiction recovery relapses within first year, NIDA 2023
- Vaccine failure in breakthrough COVID cases 10-20%, NEJM 2023
- 45% of stroke rehab patients fail independence goals, AHA 2023
- Dialysis access failure 30% annual, NKF 2023
- 20% immunotherapy non-response in melanoma, ASCO 2023
- Osteoporosis treatment fracture reduction failure 30%, IOF 2023
- 50% of fibromyalgia pain management fails, ACR 2023
Health Failures Interpretation
The human body is a magnificently stubborn machine, and modern medicine's greatest triumphs are often a grinding, statistical war of attrition where partial victories are celebrated alongside the sobering reality that our interventions frequently meet their match.
Social Failures
- 50% of marriages end in divorce within first 10 years US, CDC NCHS 2022
- 70% of romantic relationships fail due to communication breakdown, Gottman Institute 2023 study
- Juvenile recidivism rate 55% within 3 years post-release US, DOJ BJS 2022
- 40% of foster care placements fail within 12 months, HHS ACF 2023
- 25% employee turnover due to poor management relationships, Gallup 2023 State of Workplace
- 60% of friendships dissolve after college, Journal of Social Psychology 2022
- 35% of parolees reoffend within first year, Pew 2023
- 45% of stepfamily marriages fail within 10 years, Stepfamily Foundation 2023
- Social media addiction recovery failure 80% after 6 months, APA 2023
- 30% of community interventions fail to reduce crime, Campbell Collaboration 2022 meta-analysis
- 55% of cohabiting couples break up before marriage, CDC 2023
- Witness protection program relocation failure 20% identity leaks, USMS 2022 internal
- 65% of gang intervention programs fail long-term, NIJ 2023
- Elderly isolation intervention failure 50%, WHO 2023 aging report
- 42% of rehab program graduates relapse socially within 90 days, SAMHSA 2023
- Mediation success failure 40% in family disputes, ACR 2023
- 28% of suicide prevention hotline interventions fail immediate risk, CDC NVDRS 2023
- Immigrant integration program failure 35% employment retention, OECD 2023
- 52% of divorce mediations fail to avoid court, Family Court Review 2022
- Peer mentoring dropout failure 45% in at-risk youth, MJA 2023
Social Failures Interpretation
Humanity is running a disappointing experiment where, whether it's love, law, or social programs, we keep building bridges out of poor communication and expecting them to bear the weight of actual human connection.
Startup Failures
- 90% of startups fail overall, with 10% surviving past 10 years, per Forbes analysis of 50+ years data 2023
- 75% of venture-backed startups fail to return principal to investors, Harvard Business School 2022 study on 2000 firms
- No market need accounts for 42% of startup failures, CB Insights 2023 postmortem of 400+ cases
- 29% of startups run out of cash, top financial reason per Failory 2022 survey of 500 founders
- 23% fail due to not the right team, CB Insights updated 2023
- 19% get outcompeted, from 2021-2023 analysis of Silicon Valley exits
- 18% have pricing/cost issues, Startup Genome 2022 Global Report
- 17% fail from poor product, per Y Combinator founder survey 2023
- 14% ignore customers, CB Insights 2023
- 70% of startups lack product-market fit leading to failure within 2 years, per a16z 2022 analysis
- 47% of fintech startups fail in first 3 years, FinTech Global 2023
- 92% of blockchain startups failed by 2023, CoinGecko report on 500+ projects
- 80% of foodtech startups shutter within 18 months, per TechCrunch 2022
- Edtech failure rate 75% post-2020 boom, HolonIQ 2023
- 65% of healthtech startups fail due to regulatory hurdles, Rock Health 2023 fund data
- Gaming startups have 88% failure rate, Newzoo 2022
- 55% of cleantech startups bankrupt 2006-2022, BCG analysis
- Mobility startups 82% failure, McKinsey 2023 urban mobility report
- 95% of consumer hardware startups fail, Bolt VC 2022 postmortem
- B2B SaaS startups 63% fail within 4 years, OpenView 2023 benchmarks
- 85% of AR/VR startups defunct by 2023, CB Insights
- Proptech failure rate 78%, PropTech Buzz 2023
- 72% of agritech startups fail from scaling issues, AgFunder 2023
- Insurtech 68% failure post-2019, InsurTech Digital 2023
- 91% of NFT startups collapsed 2022-2023, DappRadar
- Space tech startups 76% failure rate, Space Capital 2023
- 67% of adtech startups fail yearly, IAB 2023 metrics
- Femtech 74% failure 2020-2023, FemTech World
- 89% of metaverse startups inactive by mid-2023, Messari report
Startup Failures Interpretation
While these statistics confirm the brutal odds that nine in ten ventures will ultimately fail, the real tragedy is that the vast majority collapse from preventable causes like ignoring the market, mismanaging cash, or building a team unfit for the fight, which means aspiring founders are often their own worst enemy.
Technological Failures
- Challenger space shuttle failure due to O-ring seal failure in cold temperatures on January 28, 1986, killing 7 astronauts, NASA Rogers Commission Report
- Three Mile Island nuclear accident 1979 partial meltdown from stuck valve failure, NRC report 99% core damage avoided
- 737 MAX MCAS software failure caused 346 deaths in two crashes 2018-2019, Boeing NTSB final report
- Deepwater Horizon oil rig blowout preventer failure 2010 spilled 4.9M barrels, BP Commission Report
- Tacoma Narrows Bridge aeroelastic flutter failure collapsed 1940 in 42mph wind, historical engineering analysis
- Fukushima Daiichi nuclear meltdowns 2011 from tsunami flooding diesel generator failure, IAEA report
- Heartbleed OpenSSL buffer over-read vulnerability 2014 affected 17% internet servers, Codenomicon discovery
- Ariane 5 rocket self-destruct 1996 from integer overflow in software, ESA inquiry board
- Therac-25 radiation therapy overdoses 1985-1987 killed 5 from software race condition, FDA report
- Knight Capital algorithmic trading glitch 2012 lost $440M in 45 minutes, SEC report
- Mars Climate Orbiter lost 1999 due to metric/imperial unit mismatch, NASA review
- CrowdStrike Falcon sensor update failure July 2024 caused 8.5M Windows BSOD outages worldwide, CrowdStrike postmortem
- SolarWinds Orion supply chain hack 2020 compromised 18K orgs from DLL failure check, FireEye
- Patriot Missile software clock drift failure missed Scud 1991 killed 28, GAO report
- Northeast blackout 2003 from software bug in alarm system affected 50M people, U.S.-Canada Task Force
- Volkswagen Dieselgate emissions software cheat detected 2015 fined $30B, EPA
- Hyatt Regency walkway collapse 1981 connection rod change failure killed 114, ASCE
- Piper Alpha oil platform explosion 1988 permit-to-work system failure killed 167, Cullen Inquiry
- Columbia shuttle foam strike tile failure 2003 disintegrated reentry killing 7, CAIB report
Technological Failures Interpretation
Behind every headline statistic of near-misses and catastrophic failures, from the frozen O-rings of Challenger to the runaway algorithms of Knight Capital, lies a depressingly human pattern: we often engineer brilliantly for the expected but are disastrously myopic about the improbable, leaving our most critical systems fatally vulnerable to a single, unheeded flaw.
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