Startups are exciting. They bring new ideas, challenge big companies, and often aim to change the world. But behind the buzz lies a harsh truth: most startups don’t make it. Around the world, young businesses fail for different reasons — lack of funding, wrong timing, poor product-market fit, or even cultural factors.
1. 90% of startups fail globally
The harsh truth: most startups don’t survive
This is the most important number to remember. Around 90% of startups around the world shut down before they ever reach long-term success. This isn’t just a warning sign — it’s a call for preparation.
But let’s be clear: failure doesn’t always mean bankruptcy or scandal. Many times, it just means a startup couldn’t grow fast enough, couldn’t raise funds, or lost product-market fit. Some pivot. Some founders start again. But 9 out of 10 don’t make it past the early stages.
Why such a high failure rate?
There are several reasons that combine to form this statistic:
- Most startups are built on assumptions. Founders think they know the problem, but often they’re wrong.
- Many run out of money. They underestimate how long it takes to build traction.
- Founders get tired or fall out. Co-founder conflict is more common than you might think.
- Marketing is often an afterthought. Great products die in silence if no one hears about them.
This number includes every sector, every country, and every type of startup — from solo founder side projects to venture-backed tech companies.
What can you do about it?
If you’re starting up, your goal is simple: stay out of the 90%. Here’s how:
Talk to customers early. Don’t wait until you’ve built your product to validate your idea. Talk to real people. Get their reactions. Ask what they’re already doing to solve the problem.
Build a small version first. Launch fast with a minimum viable product (MVP). Learn from it, then build what the market really wants.
Find a co-founder who complements you. It’s hard to build alone. And it’s risky to build with someone who thinks exactly like you. Find someone who brings a different skill set and can challenge your thinking.
Keep burn low. Don’t spend like you’ve raised millions if you haven’t. Control costs, avoid hiring too fast, and focus on what moves the needle.
Keep marketing in mind from day one. Build with distribution in mind. How will people find out about your product? Who will talk about it? Where will they discover it?
Failure is always possible, but it’s not random. Learn from others’ mistakes and you can shift the odds in your favor.
2. Only 10% of startups succeed long-term
Longevity is rare, but possible
When you flip the 90% failure rate, you see this number: only 1 in 10 startups succeed in the long run. That means they survive the early chaos, reach product-market fit, grow consistently, and build something that lasts.
But success doesn’t just mean going public or becoming a unicorn. Long-term success can also mean building a solid, profitable company that gives the founders freedom and impact.
What separates the 10%?
The successful 10% do a few key things differently:
- They deeply understand their users. They don’t assume. They listen, test, and adapt.
- They stay focused. Many startups try to do too much, too soon. The winners pick a lane and go deep.
- They build smart, lean teams. They don’t overhire. They get the right people on board and give them ownership.
- They raise capital strategically. Money helps, but timing matters. Smart founders know when to raise and when to say no.
- They obsess over distribution. The best product doesn’t win. The best-known product does.
Actionable advice to aim for the 10%
If you want to land in this elite group, you need to think like a long-term builder from day one:
Build a culture early. Culture isn’t about free snacks or office slogans. It’s how decisions are made, how people talk to each other, how feedback is handled. Culture can either build your company or break it.
Track the right metrics. Vanity metrics won’t help. Focus on retention, activation, and real growth — not likes, shares, or signups that don’t convert.
Find mentors and advisors. You don’t need to do it alone. Learn from people who’ve been there. A few good conversations can save you months of pain.
Solve real problems. Don’t build what’s cool. Build what’s painful. If users don’t feel a problem deeply, they won’t pay to solve it.
Stay healthy. Burnout kills more startups than bad ideas. Take care of yourself. A startup is a marathon, not a sprint.
You don’t have to be a genius or a billionaire to make it. But you do need to be patient, focused, and always learning.
3. The U.S. startup failure rate is approximately 90%
The birthplace of startups… and failures
The U.S. is known as the land of opportunity for startups. Silicon Valley, venture capital, big exits — it’s all here. But the failure rate is just as high as the global average: around 90%.
That might surprise some people. After all, the U.S. has more investors, more resources, and more examples of success. But high competition, high expectations, and high costs also make it tough to survive.
Why so many startups fail in the U.S.
Oversaturation. In popular sectors, there are often too many players. Founders rush to build similar apps or platforms without real differentiation.
Funding addiction. Easy access to capital can become a trap. Startups raise big rounds, scale fast, and burn out before reaching profitability.
High operational costs. U.S. startups often deal with expensive salaries, healthcare, and office space. That pressure can force them to grow fast or die trying.
Hype-driven culture. Sometimes founders chase trends instead of real needs. They build what investors want to hear, not what users need to buy.
How to survive in the U.S. startup scene
Be boring (in a good way). Not every startup needs to be in AI or crypto. Some of the best businesses solve simple, unsexy problems — like logistics, compliance, or back-office software.
Go regional. Not every startup has to scale nationwide on day one. Start in your city or state. Own a niche before you try to take over the world.
Raise responsibly. Just because you can raise $2M doesn’t mean you should. Take only what you need to reach the next milestone. Focus on product-market fit first.
Hire smart, not fast. The best teams win, not the biggest. Hire slowly, test cultural fit, and empower your team to think like owners.
Don’t build in isolation. Community matters. Join founder groups, go to meetups, talk to peers. Shared learning can save you from common mistakes.
The U.S. may be a competitive market, but it still holds the world’s biggest startup opportunities — if you’re ready to play the long game.
4. The UK sees a 60% failure rate within 3 years
A promising market with early risks
The United Kingdom has a vibrant startup scene. With strong financial infrastructure, government-backed accelerator programs, and a high level of entrepreneurship, it’s no surprise many founders choose to build there. Yet, 60% of UK startups shut down within just three years.
That’s a steep drop-off, especially considering the range of support available. So what’s going on?
Why startups in the UK don’t make it past year three
Too much focus on raising, too little on revenue. Many UK startups chase funding rounds instead of customers. But funding doesn’t guarantee sustainability — recurring revenue does.
Brexit’s aftershock. The uncertainty and regulatory shifts following Brexit disrupted many sectors, especially those with European ties.
Lack of operational experience. First-time founders often underestimate how hard it is to build systems, hire teams, and manage cash flow.
Costly urban hubs. Cities like London offer a ton of opportunity but also come with high costs. Rent, salaries, and marketing expenses can quickly drain runway.
What you can do differently
Focus on the first 10 customers. Before you worry about scaling, lock in your early users. Talk to them. Solve their problems. This is your best source of feedback and growth.
Explore grants and government support. The UK offers many small business incentives, R&D tax credits, and innovation grants. These can buy you time and breathing room.
Don’t get stuck in London. While London is a tech hotspot, other UK cities like Manchester, Birmingham, and Edinburgh offer strong ecosystems with lower costs.
Make every pound count. Be strict about where your money goes. Track every cost. Ask yourself: does this expense get me closer to product-market fit?
Work closely with other founders. Peer communities are underrated. Share learnings, trade referrals, and learn from each other’s mistakes.
The UK is still a top place to start a business. But the early years are brutal — and those who win are the ones who stay lean, listen hard, and stay close to their users.
5. Canada has a 50% failure rate within 5 years
A safer environment — but still not easy
Canada offers one of the most stable environments for entrepreneurship. With supportive government policies, generous startup incentives, and a highly educated population, it’s considered one of the better places to launch a business.
Still, 50% of Canadian startups don’t make it past five years. That’s a coin flip — and a sign that while Canada might be safe, it’s still a challenging environment to build something that lasts.
Why do half of startups fail in Canada?
Slow market adoption. Canadian consumers and businesses are often slower to adopt new products, especially in conservative industries like finance and healthcare.
Talent is expensive. Tech talent is in high demand, and even with programs to bring in global workers, hiring remains costly and competitive.
Limited access to large markets. Compared to the U.S., Canada has a much smaller domestic market. That means startups must go global earlier, which adds complexity.
Overreliance on grants. While government support is helpful, some startups rely too much on non-revenue funding. When grants end, many are left exposed.
Practical tips for Canadian founders
Validate quickly. Don’t wait for everything to be perfect. Launch early, test ideas, and adjust. The longer you wait, the more market changes around you.
Go cross-border early. Start thinking about the U.S. or global expansion from the beginning. Build with scale in mind, even if you’re local now.
Mix funding sources. Use grants to extend your runway, but focus on revenue from day one. A customer who pays is the best investor you’ll ever find.
Look beyond tech hubs. While Toronto and Vancouver are popular, emerging ecosystems in Calgary, Halifax, and Ottawa offer fresh opportunities.
Lean on government support strategically. Use programs like IRAP, SR&ED, and Startup Visa not just for money — but to connect with advisors, build partnerships, and open doors.
Canada offers a kinder, more stable ecosystem than many places — but the basics still apply. Solve real problems, spend wisely, and think globally.
6. India experiences about 80–90% startup failure rate
A booming startup culture with tough odds
India is one of the fastest-growing startup ecosystems in the world. With a young, tech-savvy population and increasing internet access, opportunities are everywhere. In fact, India has produced dozens of unicorns in recent years.
But here’s the reality: 80–90% of Indian startups fail, especially in the first five years.
That’s a tough pill to swallow, especially for a country full of ambition and energy. But the challenges are real — and so are the lessons.
Why are failure rates so high in India?
Market complexity. India isn’t one market — it’s a collection of many, each with its own languages, cultures, income levels, and infrastructure. What works in one city may not work in another.
Funding gaps. While funding has increased, many early-stage startups still struggle to get capital at the idea or prototype stage.
Fierce competition. Every promising space quickly becomes crowded. Without a clear edge, most startups get lost in the noise.
Execution challenges. Operational hurdles — from logistics to payments to compliance — can drain focus and resources.
Copy-paste models. Many Indian startups have tried to replicate Silicon Valley ideas without adapting to local needs, which rarely works.
How to beat the odds in India
Start hyper-local. Solve for a specific audience — a city, a profession, a niche. Build deep value before going wide.
Don’t just chase trends. EdTech, FinTech, HealthTech — they’re hot, but crowded. Instead, look for underserved sectors or regional pain points.
Make unit economics work. Many startups burn through cash on customer acquisition without ever achieving profitability. Focus on real margins.
Invest in team and trust. Hiring takes time, and good people are everything. Build a team that believes in the mission and owns their role.
Adapt constantly. Indian markets move fast. What worked six months ago might not work now. Stay close to your users and stay flexible.
Leverage Tier 2 and Tier 3 cities. Growth is exploding beyond big metros. These markets have lower costs, hungry customers, and fewer competitors.
India is not an easy place to build — but it’s one of the most rewarding. For every failed startup, there’s a founder who learned, pivoted, and built again — better and wiser.
7. Germany’s startup failure rate is about 70% over 5 years
A structured market with hidden traps
Germany is known for precision, discipline, and engineering excellence. Its economy is one of the largest in the world, and cities like Berlin and Munich have blossomed into startup hotspots. You’d think this environment would support thriving startups. Yet, around 70% of startups in Germany don’t survive beyond five years.
The reasons are less about talent or technology — and more about structure, mindset, and market fit.
What causes startups to fail in Germany?
Overengineering. Many German startups spend too much time perfecting their product. They chase technical excellence instead of market feedback. By the time they launch, the window may have closed.
Risk-averse culture. Culturally, Germany leans conservative. Consumers may be slow to adopt new tools, and investors may hesitate to back untested ideas.
Complex regulations. Starting and operating a business in Germany involves more paperwork and bureaucracy than in many other countries. This slows down progress and burns founder energy.
Fragmented language markets. While English is common, not all regions or customer groups are fluent. This creates barriers to rapid scaling inside the country.
What startup founders in Germany can do
Launch earlier, not later. Don’t wait until the product is “perfect.” Get something out, test it, and improve based on real usage. Done is better than perfect.
Build for global markets. Germany’s domestic market is large, but many startups succeed when they look beyond it — especially into other EU countries.
Use Germany’s strengths. Leverage its industrial depth. B2B, logistics, manufacturing, clean tech — these are areas where Germany shines.
Navigate regulation proactively. Work with legal advisors early. Get permits, licenses, and tax structures right from the start to avoid future slowdowns.
Challenge the local mindset. Don’t be afraid to fail fast. Push back on risk-averse thinking. Create a culture where it’s okay to experiment and pivot.
Germany may be complex, but it offers incredible resources, talent, and infrastructure. Founders who learn to move fast within a slow system can win big.
8. France has a 50% failure rate within 3 years
A rising tech hub with early drop-offs
France is emerging as a serious player in the global startup race. With the rise of “La French Tech,” Paris has become a European startup capital. Government support has grown, and venture capital is increasingly available.
Still, 50% of startups fail within just three years. That’s a short window to go from idea to traction — and many don’t make it in time.
Why do startups fail early in France?
Cultural formality. French business culture tends to be more formal and hierarchical, which can slow down startup-style experimentation and fast decision-making.
Regulatory overhead. Labor laws, taxes, and red tape can be overwhelming. Founders often get distracted from product and growth by compliance issues.
Hiring challenges. While there’s strong tech talent, startups struggle to compete with large corporations offering better pay and job security.
Marketing blind spots. Many startups focus heavily on product and underestimate branding, positioning, and storytelling — especially for international expansion.
Tips to improve startup success in France
Plan for bureaucracy. Budget time and resources to deal with paperwork. It’s not exciting, but skipping this step causes problems down the line.
Get government help — wisely. France offers many funding programs and tax credits (like CIR). These are helpful, but make sure they align with your goals.
Focus on early traction. Investors and customers want proof. Build fast, launch faster, and validate as early as possible.
Sell beyond France. Tap into the larger EU market. Build your product and messaging to work in English, Spanish, or German if needed.
Create a culture of speed. Startups thrive on momentum. Build teams that value iteration, flexibility, and problem-solving over process.
France is no longer a slow player in the startup world. With the right approach, founders can grow fast and smart — even in a highly structured system.
9. Australia records a 60% failure rate within the first 3 years
A well-supported scene with early hurdles
Australia offers a lot to startup founders: good infrastructure, smart government grants, and a thriving scene in cities like Sydney and Melbourne. And yet, 60% of startups don’t survive past year three.
This shows that even in a supportive environment, building a business is still a tough journey.
Why do so many Australian startups fail early?
Small domestic market. Australia’s population is just over 26 million. That limits scale potential, especially for consumer-focused startups.
High operational costs. Office space, salaries, and software tools often cost more than in other regions. That eats into runway quickly.
Limited access to capital. While funding is growing, it still lags behind places like the U.S. and Europe. Many founders find it hard to raise pre-seed or seed rounds.
Founder isolation. The distance from global markets — and even between major cities — can leave founders feeling cut off from international trends and mentors.
How to reduce the risk in Australia
Think international from day one. Australia is a great test market, but global scale needs global thinking. Design your product and branding to cross borders.
Use grants wisely. The R&D tax incentive and Export Market Development Grant (EMDG) are powerful tools. Use them to stretch your cash and fund key experiments.
Be laser-focused on customer value. With fewer customers available, each one matters more. Build something they love, not just like.
Tap into global communities. Join remote founder groups, attend virtual accelerator programs, and connect with international advisors.
Bootstrap creatively. Many Australian success stories started scrappy. Don’t be afraid to sell early, charge upfront, or pre-sell a product to fund its build.
Australia has produced standout startups despite its geographic isolation. With the right mindset, founders can turn challenges into a competitive edge.
10. China has a startup failure rate of around 80%
A massive market with cutthroat competition
China’s startup ecosystem is huge. With over a billion people, fast-moving consumer trends, and a digital-first population, the opportunities are vast. But so are the risks. Around 80% of startups in China fail, often within just a few years.
Despite impressive funding rounds and government support, many startups collapse under pressure — both internal and external.
What’s behind the high failure rate in China?
Hyper-competition. Every hot sector becomes crowded quickly. Dozens or even hundreds of startups enter the same space, leading to price wars and rapid burn.
Copycat culture. Startups often copy each other’s ideas. Without a unique edge or better execution, they end up blending in and losing customer interest.
Regulatory uncertainty. Laws change fast. What’s allowed one month may be restricted the next — especially in tech sectors like education, fintech, or data.
Scale before product-market fit. Many startups focus on growth first. They spend on marketing before fully understanding their customer’s needs. That leads to churn and wasted capital.
Poor unit economics. Discounts and promotions drive user acquisition but eat up margins. When funding slows down, so does sustainability.
What founders in China can do differently
Solve deeper problems. Instead of chasing trendy sectors, focus on solving pain points — especially in Tier 2 and Tier 3 cities where competition is lower and needs are real.
Build with clarity. Have a unique vision. Make sure your value proposition is clear and hard to copy. Execution and brand matter more than ever.
Stay lean. In an ecosystem full of big spenders, lean teams can win. Focus on strong processes, clear metrics, and efficient use of capital.
Diversify early. Don’t depend on one channel or region. Think about how to grow through partnerships, offline networks, or content.
Understand the regulatory pulse. Work with local legal experts. Stay informed on policy trends, and design your model to stay compliant.
China is fast, tough, and rewarding. The startups that survive here are often some of the strongest and most adaptable in the world.
11. Israel sees 70% of its startups fail within 5 years
The Startup Nation — still facing steep odds
Israel is known as the “Startup Nation,” and for good reason. It has more startups per capita than almost anywhere else. With a strong tech education system, mandatory military service that builds leadership, and close ties to U.S. markets, Israel is a global innovation hub.
But even here, around 70% of startups don’t make it past five years.
What leads to startup failure in Israel?
Heavy tech focus. Many Israeli startups are deeply technical — cybersecurity, AI, biotech. While impressive, these require long R&D cycles and high upfront investment.
Early global expansion. Israeli startups often aim for the U.S. or Europe quickly. That adds pressure to scale fast, build global teams, and navigate foreign markets.
Investor dependency. With strong VC presence, startups sometimes rely too much on outside capital. When funding slows, they struggle to stay afloat.
Talent bottlenecks. The talent pool is deep but small. Hiring experienced people is competitive and expensive.
Pivot fatigue. Many founders pivot too often, chasing investor interests instead of customer needs. This leads to loss of direction.
How Israeli startups can increase their odds
Validate globally, build locally. Use Israel’s advanced ecosystem to prototype and test ideas. But get real-world feedback from global customers early.
Focus on traction, not tech. Don’t get caught up in product features. Talk to users, refine the core value, and test monetization models.
Build investor resilience. Even if you raise funding, build like you won’t. Focus on making revenue early and keeping burn rates low.
Create strategic alliances. Israel has strong connections to U.S. markets. Use these wisely — not just for funding, but for distribution and partnerships.
Invest in storytelling. Many Israeli startups have incredible tech, but struggle to communicate their vision. Clear messaging helps with hiring, sales, and investor conversations.
Israel’s ecosystem is rich, but it’s also intense. Founders who balance ambition with patience and stay grounded in user needs can thrive long-term.
12. Brazil’s startup failure rate is about 75% over 5 years
A vibrant but volatile startup ecosystem
Brazil has been rising fast on the global startup map. With a large population, high mobile usage, and a growing middle class, it’s an exciting place for innovation. Cities like São Paulo and Rio de Janeiro are startup hotspots.
But with all that potential comes risk. Around 75% of Brazilian startups don’t survive five years. That’s a significant drop-off — and a sign that opportunity alone isn’t enough.
Why so many Brazilian startups fail
Economic instability. Brazil’s economy can swing quickly, affecting spending power, interest rates, and investor confidence.
Bureaucracy and taxation. Running a business in Brazil often involves complex paperwork and heavy taxes. These administrative burdens slow growth.
Access to funding. While late-stage capital is growing, early-stage funding is still hard to come by, especially outside major cities.
Consumer trust issues. Fraud and scams have made some users wary of new apps or online services. Trust takes time to earn.
Lack of technical depth. In some regions, there’s a shortage of experienced engineers or product managers, which makes building great teams harder.
Strategies for startup survival in Brazil
Be financially conservative. The economic climate can change fast. Keep overhead low and prepare for uncertainty.
Build for resilience. Design your product to withstand changing consumer behaviors. Build models that are profitable even at smaller scales.
Focus on local pain points. Startups that solve unique, Brazil-specific problems tend to do better. Localization isn’t just about language — it’s about culture and context.
Educate your users. Invest in onboarding, support, and transparency. Helping users understand and trust your product will increase adoption.
Explore secondary cities. São Paulo is crowded. Look at growth areas in cities like Belo Horizonte, Curitiba, or Porto Alegre.
Brazil is tough, but it rewards creativity and grit. Founders who stay close to their customers and build step by step can defy the odds.
13. South Korea’s startup failure rate is around 60%
A tech-forward society with hidden startup hurdles
South Korea is a technology powerhouse. With fast internet, high smartphone usage, and a well-educated population, it seems like an ideal environment for startups. In recent years, Seoul has become a hotspot for innovation, particularly in gaming, fintech, and AI.
Yet, about 60% of startups in South Korea shut down within five years. Even with government backing and a strong digital culture, many businesses struggle to grow or survive.
What challenges do Korean startups face?
Hierarchical culture. Traditional business culture in South Korea values hierarchy and seniority. This sometimes clashes with the flat, fast-moving culture startups thrive on.
Social pressure. Failure is still heavily stigmatized in Korea. This discourages risk-taking and honest sharing of startup struggles.
Heavy reliance on chaebols. Large family-owned conglomerates dominate the economy. Competing with them or working around them can be difficult for small startups.
Talent brain drain. Many of Korea’s best tech minds prefer stable jobs in large corporations, government, or abroad.
Limited global focus. Many startups build only for the local market, which limits their scalability and reach.
What founders in Korea can do differently
Adopt an open culture. Encourage open communication, fast decision-making, and experimentation within your team. This breaks the mold of rigid corporate structure.
Start small, grow smart. Focus on a small but real problem. Solve it well before you expand to other areas.
Promote failure as learning. Within your company, make it okay to test, fail, and learn. The more you experiment, the faster you grow.
Seek international collaboration. Partner with founders, advisors, or VCs from outside Korea. This brings new ideas and global thinking.
Explore export potential. Many Korean startups have great products but don’t market them abroad. Translation, localization, and international PR can open huge new doors.
South Korea has all the ingredients for great startups. Founders who push cultural boundaries and think globally will be the ones who thrive.
14. Sweden has a failure rate of 60% for startups within 5 years
A startup-friendly country with competitive pressure
Sweden has gained global attention for producing successful startups like Spotify, Klarna, and Skype. The country offers excellent public services, high-quality education, and a tech-literate population. The entrepreneurial ecosystem in Stockholm is especially strong.
Still, 60% of startups in Sweden don’t make it past five years. That may seem surprising given its positive environment — but no ecosystem is risk-free.
Why do startups fail in Sweden?
Overemphasis on product. Swedish startups often focus heavily on building great products. But sometimes, they delay or undervalue go-to-market strategies.
Low risk appetite. Culturally, Swedes can be cautious. This sometimes slows down aggressive scaling or bold experimentation.
High cost of living. Hiring, office space, and operations in Sweden can be expensive, which adds pressure to grow quickly.
Funding gaps at certain stages. While seed funding is available, many startups face challenges when looking to raise Series A or beyond.
Small domestic market. Sweden has a relatively small population. Startups need to look abroad early — and not all are prepared for that shift.
How to improve startup success in Sweden
Prioritize growth strategy. Don’t wait until the product is “perfect.” Think about how you’ll acquire users, generate leads, and create demand early on.
Use government support wisely. Sweden has excellent startup grants and incubators. These should be used to build core assets, not to delay facing the market.
Target international users from day one. Build your website, product interface, and support structure to work in English or other major languages.
Design lean teams. Avoid overhiring. A focused, small team with strong ownership can do more than a bloated one.
Tell your story boldly. Swedes tend to be modest, but storytelling is a superpower in business. Get comfortable pitching, promoting, and celebrating wins.
Sweden produces global winners. The startups that succeed usually blend technical depth with international ambition — and move fast.
15. South Africa sees nearly 70% of startups fail in under 3 years
A high-potential region facing early collapse
South Africa is one of Africa’s largest economies and a leader in the continent’s tech scene. Cape Town and Johannesburg have both become startup centers with growing venture capital activity.
Still, nearly 70% of startups in South Africa fail within just three years. This early exit rate is one of the highest, showing that the challenges are immediate and intense.
What causes startup failure in South Africa?
Access to capital. Early-stage funding is limited. Many promising startups never get the runway they need to validate or grow their ideas.
Infrastructure gaps. Unstable electricity (load shedding), internet access issues, and other infrastructure weaknesses hurt consistency and growth.
Market trust. Consumers are wary of new brands. Building reputation and credibility takes time — and often, money.
Skilled talent shortage. There’s a lack of experienced developers, marketers, and growth leaders. Startups often train talent from scratch.
Economic inequality. Wide income gaps make it hard to build products that serve everyone. Founders must choose their target segments carefully.
How founders in South Africa can beat the odds
Start lean and local. Focus on a clear niche. Build something for a well-defined group of users you can reach and serve efficiently.
Use alternative funding sources. Explore angel networks, accelerators, pitch competitions, and international grant programs that support African innovation.
Partner with trusted brands. Co-branding or partnership with known names can help build consumer trust more quickly.
Build for mobile. South Africans primarily access the internet via smartphones. Make sure your product is mobile-friendly and data-light.
Plan for power disruptions. While not ideal, designing your business to work offline or during outages can be a competitive advantage.
South Africa’s challenges are real — but so is its potential. The entrepreneurs who succeed here often build smarter, not louder — and use constraints to fuel creativity.
16. Japan has a 50–60% startup failure rate within 5 years
A conservative market with shifting dynamics
Japan is a land of innovation, precision, and deep-rooted industry. It’s home to massive corporations, cutting-edge robotics, and globally recognized brands. But when it comes to startups, the pace is slower. Around 50–60% of startups in Japan shut down within five years.
While the failure rate is slightly better than some regions, it reflects the underlying tension between tradition and disruption.
What makes startup success difficult in Japan?
Risk-averse culture. Failure in Japan carries a heavy stigma. Many aspiring entrepreneurs avoid starting up altogether due to fear of societal or family judgment.
Investor caution. Venture capital exists but tends to favor safe bets or established business models. Bold or unconventional ideas struggle to gain early traction.
Corporate dominance. Big players dominate most sectors. Startups often find it difficult to compete or secure B2B partnerships without an existing reputation.
Slow decision-making. Whether dealing with investors, customers, or government agencies, the pace of progress is often slow.
Limited startup marketing. Many Japanese startups focus inward — on tech, systems, and process — but neglect external marketing and storytelling.
What Japanese founders — or those targeting Japan — can do
Normalize iteration. Encourage your team to test quickly, learn from mistakes, and move forward. Build a culture where small failures are accepted and useful.
Go niche. Japan has a strong appreciation for specialized, high-quality services. Pick a niche and serve it better than anyone else.
Use partnerships wisely. Collaborating with large corporations through innovation labs or startup partnerships can give early-stage startups both credibility and traction.
Localize communication. Japanese consumers value detail and clarity. Build marketing materials that feel native, well-crafted, and culturally sensitive.
Find your tribe. Join startup communities, founder circles, and co-working spaces to stay motivated and connected. Entrepreneurship can feel isolating, especially in conservative environments.
Japan has everything a startup needs — smart consumers, capital, infrastructure — but founders must respect the culture while pushing gently for change.
17. Singapore’s failure rate is around 30–40%, among the lowest globally
A structured system that supports success
Singapore is one of the best places in the world to launch a startup. Its failure rate of just 30–40% is significantly lower than most countries, showing that many startups manage to stay alive long enough to grow or pivot.
Why does Singapore do so well? It comes down to a mix of policy, location, infrastructure, and culture.
Why do more startups survive in Singapore?
Strong government support. From Startup SG Equity to Enterprise Singapore grants, founders can access non-dilutive funding, mentorship, and resources.
Pro-business environment. Incorporating a business is simple and fast. Taxes are low, and there’s a wealth of free or subsidized services for new businesses.
Strategic location. Singapore acts as a gateway to the wider Southeast Asian region, giving startups access to markets like Indonesia, Malaysia, Thailand, and Vietnam.
High trust. Consumers and businesses trust startups more easily here, especially when they meet regulatory standards.
Great infrastructure. Whether it’s internet speed, co-working spaces, or legal help — Singapore’s systems are smooth and startup-friendly.
What founders in Singapore should still watch out for
Small domestic market. Singapore itself is small. Most startups must scale across borders to grow, and that requires planning.
High cost of living. Office space, talent, and even daily expenses are costly. This can shorten your runway if not managed carefully.
Talent competition. Startups must compete with MNCs and government-linked companies for top talent. Equity isn’t always a strong lure here.
Smart strategies for thriving in Singapore
Plan for regional expansion early. Even if you start in Singapore, build your product and pricing model to work across other Southeast Asian countries.
Use grants to reach key milestones. Singapore offers funding at each stage — idea, prototype, pilot, and scale. Time your applications and goals strategically.
Invest in design and user experience. Singaporean users have high standards. Clean, intuitive interfaces make a big difference.
Build lean teams. You don’t need a big staff. Focus on core roles, outsource smartly, and avoid over-hiring too early.
Be visible. Attend events, join accelerators, and build your brand. Singapore’s ecosystem is tight-knit — visibility leads to opportunities.
Singapore proves that startup success isn’t just about ideas. With systems that reduce friction, founders can focus on building, learning, and growing.
18. Startups in the Netherlands have a 55% failure rate in 5 years
A startup-friendly ecosystem with growing pains
The Netherlands — particularly Amsterdam — is gaining global traction as a tech hub. With access to EU markets, a bilingual population, and strong infrastructure, the country is a great launchpad.
Still, about 55% of startups here fail within five years. It’s not catastrophic, but it shows that survival is far from guaranteed.
Why do Dutch startups struggle?
Early scaling struggles. Many Dutch startups build great products but struggle to scale beyond their home market or break into international markets.
Funding ceiling. Seed rounds are relatively accessible, but moving into larger rounds (Series A and beyond) can be difficult unless you move to bigger markets.
Moderate risk appetite. Dutch culture is pragmatic and cautious. That’s great for avoiding flashy flameouts — but it can limit rapid innovation and bold bets.
Hiring hesitations. Employment laws can make hiring and firing complex, which leads some founders to delay key team decisions.
Under-marketing. Like other European countries, Dutch startups sometimes undervalue branding and storytelling in favor of product and operations.
What founders can do to succeed in the Netherlands
Think beyond borders from day one. The Dutch domestic market is limited in size. Build with European expansion in mind — including language, compliance, and logistics.
Use accelerators and hubs. Amsterdam, Rotterdam, and Eindhoven all offer innovation clusters that connect you with investors, mentors, and global partners.
Be loud about your value. Don’t shy away from telling your story. A strong brand builds trust and attracts both talent and customers.
Seek smart capital. Choose investors who offer more than money — connections, mentorship, and industry access are critical.
Adapt your hiring strategy. Use contractors or flexible contracts early. Build a culture that attracts talent based on mission, not just money.
The Netherlands offers the best of both worlds — stability and access to international markets. Founders who blend cautious planning with bold moves can build something lasting here.
19. Mexico reports a startup failure rate near 75%
A vibrant market with early-stage pitfalls
Mexico has been climbing the startup ladder quickly. With a population of over 125 million, rising digital adoption, and a growing middle class, it’s no surprise that local and foreign founders are flocking to cities like Mexico City and Guadalajara to build startups.
Still, the road isn’t easy. Around 75% of startups in Mexico fail, mostly before reaching the five-year mark.
What’s holding startups back in Mexico?
Limited early-stage capital. Although later-stage investors are showing more interest, early funding is scarce. Many founders can’t raise their first $50K.
Payment and logistics challenges. While mobile and digital platforms are on the rise, infrastructure like last-mile delivery or digital banking still lags in some areas.
Regulatory inconsistency. Laws around business licensing, taxes, and labor can be unclear or enforced unevenly, causing delays and confusion.
Informal competition. In some sectors, small informal businesses offer cheaper alternatives, making it hard for formal startups to compete on price.
Consumer trust. Online businesses still need to work harder to earn trust, especially among older or rural populations.
What founders in Mexico can do to boost their odds
Leverage mobile-first strategies. Most users engage via smartphones. Optimize for mobile usage, payment, and onboarding from the start.
Start lean and local. Don’t try to go national on day one. Focus on one city or region, build momentum, and use that to grow wider.
Tap into government and NGO programs. There are many local accelerators and international organizations supporting entrepreneurship in Latin America.
Educate your market. Don’t assume customers understand your product. Use content, community events, and strong support to build trust.
Build with resilience in mind. Plan for delays, budget hiccups, and customer education. It’s slower in the beginning — but pays off in long-term loyalty.
Mexico is a land of massive opportunity. Founders who play the long game, build smartly, and adapt to local behavior can build powerful companies here.
20. Finland has a startup failure rate of about 60%
A tech-savvy ecosystem with quiet challenges
Finland is often praised for its innovation culture, excellent education system, and robust digital infrastructure. Helsinki, in particular, is home to many successful tech startups — and events like Slush have brought global attention to the scene.
Despite these strengths, 60% of Finnish startups fail within five years. This shows that having the right environment doesn’t automatically guarantee success.
What makes startup success tough in Finland?
Modest market size. With a population of just over 5.5 million, the domestic market is small. Many startups struggle to reach enough customers or scale revenue.
Slow sales cycles. Both consumers and businesses take time to adopt new products. Trust-building and compliance are key factors.
Quiet branding. Finnish culture favors humility over self-promotion. While admirable, this often results in under-marketed products with limited reach.
Funding limitations. Early-stage capital is accessible, but many startups hit a wall when trying to raise larger rounds from local investors.
Founder burnout. Harsh winters, long work hours, and pressure to “do it all” can lead to physical and emotional fatigue, especially for solo founders.
Smart ways for Finnish startups to beat the odds
Go global, early. Don’t wait to grow beyond Finland. Build products with international potential and test them in nearby Nordic or EU markets.
Lean into storytelling. Practice telling your company’s story. Don’t be afraid to talk about your mission, impact, and traction — especially with international investors.
Use Finland’s R&D strength. Finnish universities and labs are world-class. Tap into this ecosystem for partnerships, IP, and advanced talent.
Focus on mental health. Build rest into your startup culture. Take advantage of Finland’s quality of life to avoid burnout and support sustainable growth.
Attend international events. Pitch at Slush, Web Summit, and other platforms that give you visibility and investor access beyond the Nordic circle.
Finland is one of the smartest places to build — but to succeed, you need to think outside its borders while holding on to its values of quality and integrity.
21. Russia’s startup failure rate is close to 80%
High innovation potential, steep systemic barriers
Russia has produced some brilliant tech minds and large-scale platforms in search, fintech, and gaming. Yet the startup scene hasn’t flourished to its full potential — largely due to political, regulatory, and financial challenges. As a result, about 80% of startups fail, especially in their early years.
This is a case where the talent is undeniable, but the system makes survival difficult.
What makes startups fail in Russia?
Regulatory pressure. Startup laws can change quickly. From data protection to taxation, shifting rules make it hard to plan ahead.
Limited global integration. Many Russian startups face difficulty accessing Western markets or capital, reducing their growth opportunities.
Funding concentration. A few large funds dominate the scene, and getting early support is competitive — especially for founders outside major cities.
Brain drain. Many of the best engineers and founders move abroad, leading to talent shortages at home.
Distrust in institutions. Founders often hesitate to register companies or scale because of fear of audits, corruption, or legal interference.
How Russian founders can build more resilient startups
Focus on deep tech. Areas like cybersecurity, AI, and robotics are strengths in Russia. Startups in these fields can build defensible IP and attract international interest.
Work with global partners. Even if targeting local markets, find ways to work with global teams for learning, structure, and credibility.
Target emerging markets. If access to U.S. or EU markets is limited, consider growing in Africa, Southeast Asia, or Latin America.
Use remote-first strategies. With talent moving abroad, use remote teams and decentralized operations to scale more sustainably.
Bootstrap where possible. In a system with funding and trust limitations, generating revenue early can be your biggest advantage.
Russia’s startup scene is full of grit and genius. Founders who understand the system, focus on real tech, and keep a global mindset stand the best chance of long-term success.
22. Ireland sees about 50% of startups fail in 3 years
A fast-growing tech hub with early challenges
Ireland, especially Dublin, has become a favorite spot for tech giants and growing startups. With its favorable tax regime, educated workforce, and EU access, it’s considered a solid place to build a startup. However, about 50% of startups in Ireland shut down within three years, showing that early traction remains a key challenge.
What are the key reasons for failure in Ireland?
Overdependence on international funding. While multinationals invest heavily in Ireland, local early-stage startups often struggle to get capital from native investors.
High cost of living. Dublin and other cities are expensive. Rent, salaries, and basic operations cost more than in other European cities, putting pressure on early-stage cash flow.
Talent competition. Large tech companies soak up most of the top talent, leaving startups to fight over the remaining pool — often at unaffordable salaries.
Slow B2B adoption. In Ireland, traditional businesses are slower to adopt new technology. Startups often struggle to close early sales.
Limited internal market. With under 5 million people, scaling in Ireland alone isn’t viable. Yet many startups don’t plan for global growth early enough.
What can Irish startups do to improve survival?
Secure early traction locally. Before expanding internationally, win over a focused niche at home. Case studies and referrals from local clients can open global doors.
Use Ireland’s global access. You’re part of the EU and English-speaking. That’s a rare advantage. Build your growth strategy to include the UK, Europe, and even U.S. early on.
Tap into Enterprise Ireland. This government agency offers generous supports — from seed funding to export help. Engage early and stay close to their network.
Avoid the salary war. Hire based on potential, not just experience. Upskill early hires, and offer equity or purpose-driven culture in place of big paychecks.
Join international accelerators. Ireland is well-connected to startup hubs like London, Berlin, and New York. Use that access to raise funding or find global customers.
Ireland is small but mighty. Founders who pair local wins with global ambition have a real chance at building something lasting.
23. Norway has a failure rate of roughly 60% for new ventures
A well-funded society with hidden startup friction
Norway is wealthy, stable, and packed with tech talent. It also has one of the highest standards of living in the world. All of this would suggest that startups should flourish here — and many do. But around 60% of startups in Norway fail within five years.
While failure is not seen as negatively as in some countries, it highlights the challenges of turning innovative ideas into sustainable businesses in a resource-rich country.
Why do Norwegian startups fail?
Comfort zone economy. Norway’s strong social safety net and oil-driven economy reduce urgency. Many founders don’t face the same pressure to succeed quickly.
Small domestic market. With just over 5 million people, the local audience is limited, and expanding beyond Norway requires cultural and operational shifts.
Slow buyer adoption. Both businesses and consumers are careful. They research heavily, take their time, and want full trust before committing.
Lack of urgency in scaling. Because there’s little financial desperation, startups sometimes move slower than necessary to capture early markets.
Equity aversion. Employees are often hesitant to take equity in place of salary, making it hard to build ownership-driven teams.
What Norwegian founders can do differently
Start with export in mind. Whether it’s SaaS, sustainability, or hardware, build your brand to work in other Nordic countries, Europe, or the U.S. from day one.
Move faster than the system expects. Comfort can lead to complacency. Set personal deadlines, create urgency, and challenge your own speed of execution.
Get close to customers. Don’t assume you know what users want. Interview them, shadow their workflows, and tailor your messaging accordingly.
Promote ownership culture. Educate your team about startup equity and its long-term value. Build a mission that excites people beyond paychecks.
Join pan-Nordic networks. Collaborate with founders and investors in Sweden, Denmark, Finland, and beyond. Norway’s scene is part of a larger ecosystem.
Norway offers safety, intelligence, and high trust. Founders who push beyond comfort, and aim for speed and scale, are best positioned to succeed.
24. Indonesia’s startup failure rate is about 80%
A fast-growing digital economy with risky terrain
Indonesia is one of Southeast Asia’s most exciting startup markets. With over 270 million people and rapid digital adoption, it’s seen unicorns like Gojek and Tokopedia rise quickly. But for every success story, there are many failures — and about 80% of startups in Indonesia shut down, mostly within five years.
This high failure rate reflects both the promise and complexity of the country’s ecosystem.
Why is failure so common in Indonesia?
Fragmented geography. Indonesia is an archipelago with thousands of islands. Delivering services or products efficiently across regions is tough.
Infrastructure limitations. Internet access, logistics, and payments are inconsistent in rural and less developed regions.
Funding disparity. While large, well-known startups attract major capital, early-stage ventures often struggle for seed and Series A rounds.
Talent shortages. High-growth startups often face a lack of experienced engineers, growth marketers, and product leaders.
How to succeed as a founder in Indonesia
Start hyper-local. Solve real problems in a specific area, city, or industry. Once the model works, then consider scaling to other regions.
Build offline-to-online models. Don’t assume all users are digitally fluent. Combine online tools with local agents, community partners, or SMS-based systems.
Hire smart, train smarter. Invest in upskilling junior talent. Create learning programs and empower early hires to grow into leadership roles.
Build trust over time. Indonesian users value relationship and trust. Focus on customer service, transparency, and consistency.
Lean into strategic partnerships. Work with telcos, banks, and logistics companies to expand reach and build operational stability.
Indonesia offers massive opportunity — but success requires extreme adaptability. The startups that win here are grounded in local knowledge and built for complexity.
25. Startups in Switzerland fail at a rate of around 50%
Precision-focused market with moderate risk
Switzerland is known for its stability, precision engineering, and strong education system. The country also offers a solid tech ecosystem supported by global institutions, world-class universities, and wealthy investors. Yet despite these advantages, around 50% of Swiss startups fail within five years.
It’s not a catastrophic number, but it signals that even in well-organized markets, building a startup is never a sure thing.
What contributes to startup failure in Switzerland?
Conservative investment mindset. Investors in Switzerland are cautious. They often require extensive proof before committing, which slows early growth.
Small domestic market. With about 9 million people and four national languages, scaling inside Switzerland is tough and fragmented.
High operational costs. Salaries, office space, and services are expensive. Startups burn through cash quickly if they don’t find traction.
Over-engineering. Many Swiss founders over-focus on building a perfect product instead of getting to market fast and testing ideas.
Complex regulations. Especially in sectors like health tech and fintech, compliance can delay go-to-market timelines.
What Swiss founders can do differently
Launch earlier. Get your MVP out fast. Even in a detail-oriented country, users will give feedback if you ask — and iterate quickly based on what you learn.
Go cross-border early. Switzerland’s neighbors (Germany, France, Austria, Italy) offer great expansion opportunities. Build with multilingual capacity from the start.
Use public innovation support. Swiss programs like Innosuisse provide funding, mentorship, and credibility — tap into them early.
Find leaner ways to build. Outsource smartly, work remotely, or collaborate with students and researchers to reduce burn without losing quality.
Tell your story boldly. Swiss modesty is admirable, but customers and investors abroad respond to confidence. Learn to pitch your value clearly and energetically.
Switzerland rewards precision and quality — but founders who pair that with speed and storytelling can build something extraordinary.
26. Italy experiences a startup failure rate of 70% within 5 years
A creative culture facing structural friction
Italy has a rich tradition of design, innovation, and entrepreneurship. With growing hubs in Milan, Rome, and Turin, the startup landscape is evolving. But the road is steep: around 70% of Italian startups don’t survive beyond five years.
Behind the country’s creativity lies a complex mix of red tape, funding gaps, and economic uncertainty.
What leads to high failure rates in Italy?
Bureaucratic complexity. Starting and running a business involves extensive paperwork, legal compliance, and a maze of approvals.
Slow institutional support. Government and financial institutions move cautiously, and grants or funding often arrive too late to help.
Fragmented economy. Italy is split between northern industrial hubs and less developed southern regions. Scaling across the country is difficult.
Limited venture capital. Funding exists but is concentrated, and investors often prefer later-stage companies or proven business models.
Talent misalignment. While Italy has great creative and technical minds, the education system doesn’t always align with startup needs like product, growth, or data.
How founders in Italy can thrive
Start small and focused. Instead of trying to go national, build deep value in one region or industry first. Let traction do the talking.
Navigate bureaucracy proactively. Work with advisors, mentors, or legal experts who know the local landscape. Don’t fight the system — work around it smartly.
Go global from the start. Build your product and brand to speak English, not just Italian. Target EU customers or global niches early.
Use accelerator programs. Italy now hosts international startup hubs that connect founders to capital, mentorship, and press.
Tell a compelling story. Italian founders sometimes underplay their achievements. Clear messaging, branding, and a global pitch deck can open new doors.
Italy is full of talent and vision. Founders who combine creativity with process, and who think internationally, have a strong shot at defying the odds.
27. Malaysia’s failure rate is close to 60%
A fast-developing ecosystem with common roadblocks
Malaysia has quietly built one of Southeast Asia’s more promising startup environments. With strong government initiatives, good internet infrastructure, and a central location, it has what it takes to become a regional tech player. Still, around 60% of startups in Malaysia fail within the first five years.
The problems here are often less about vision — and more about execution, focus, and user understanding.
Why do Malaysian startups struggle?
Lack of early traction. Many founders build products without fully understanding their customer or testing the demand.
Overreliance on grants. Malaysia offers solid government support, but some startups become dependent and fail when the funding ends.
Limited consumer trust. Online transactions, fintech tools, or new platforms still face resistance from some users who prefer familiar methods.
Skill mismatch. Technical talent is available, but growth roles — like UX, marketing, or data science — are often underdeveloped.
Slow B2B adoption. Selling to businesses, especially government-linked firms, takes time and personal connections.
What Malaysian founders can do to improve their odds
Validate first, build second. Talk to potential users before launching. Test with prototypes, run interviews, and get feedback early.
Balance grants with revenue. Use government support to build something users will pay for. Don’t treat grants as your main income stream.
Educate your customers. Especially in fintech or health tech, invest in onboarding, FAQs, and live support to make adoption smoother.
Invest in growth roles. Train internal staff or bring in advisors who understand product marketing, user retention, and analytics.
Focus on Southeast Asia. Malaysia is well-positioned to target Indonesia, Thailand, and Singapore. Build with regional scale in mind.
Malaysia is on the rise — and founders who stay user-focused, lean, and connected to regional markets can lead the next wave of success stories.
28. Philippines startups fail at a rate of about 75%
A high-energy ecosystem still finding its footing
The Philippines is seeing a surge of interest in tech and entrepreneurship. With a young, English-speaking population, high mobile usage, and growing digital infrastructure, the country is becoming a regional contender in Southeast Asia.
Yet, about 75% of startups in the Philippines fail, especially within the first few years.
This gap between promise and execution has roots in structural, financial, and user-behavior challenges — but also signals untapped potential.
Why do so many startups struggle in the Philippines?
Lack of early-stage capital. Access to funding is still limited, especially outside of Manila. Many founders bootstrap until they burn out.
Infrastructure inconsistencies. Outside major cities, issues like slow internet, delivery challenges, and poor logistics limit startup reach.
Trust and brand loyalty. Many consumers prefer established brands. New players have to work hard to earn credibility.
Talent concentration. While the Philippines has a strong outsourcing and BPO sector, there’s less local experience in startup-specific roles like product management or growth.
Over-focus on Silicon Valley models. Some startups copy U.S. ideas without adapting them to local user needs or infrastructure realities.
What Filipino founders can do to succeed
Hyper-localize your product. Solve real, everyday pain points — especially those unique to Filipino users. Think of services tailored for barangays or local communities.
Build credibility fast. Offer money-back guarantees, strong support, or community referrals to earn user trust from day one.
Leverage mobile and social. Filipinos are highly active on mobile and social media. Build simple, mobile-first products and distribute via TikTok, Facebook, or YouTube.
Join local incubators. Programs like IdeaSpace or QBO Innovation Hub offer funding, mentorship, and exposure to early investors.
Start lean, grow steadily. Prove value in one area or niche before chasing national growth. Traction is your best pitch.
The Philippines is bursting with opportunity. Founders who adapt to local nuances and stay connected to user needs can build businesses that scale — and stick.
29. Vietnam has a high failure rate of around 80%
An emerging powerhouse still stabilizing
Vietnam is quickly emerging as one of Southeast Asia’s most exciting startup markets. With a young, tech-savvy population and a booming middle class, it’s attracting both regional and global attention. Yet, about 80% of startups in Vietnam fail, particularly during the early stages.
This high failure rate reflects growing pains more than lack of ambition — and offers important lessons for building in fast-moving economies.
Why do so many startups fail in Vietnam?
Rapid but uneven growth. Vietnam’s economy is booming, but infrastructure (like payments, logistics, and regulation) is still catching up.
Language and cultural gaps. Foreign founders often struggle with the local business environment, and local founders may struggle to globalize.
Short-term thinking. Many startups focus on hype, raising money, or copying trends, but fail to develop a long-term product and growth strategy.
Talent bottlenecks. The demand for developers and growth experts far exceeds supply, making it tough to build high-performing teams.
Informal competition. Low-cost alternatives from informal sellers (especially in e-commerce) make customer acquisition expensive and retention tricky.
How Vietnamese startups can thrive
Double down on user research. Understand your customers deeply — especially how they discover, buy, and talk about products in their daily lives.
Focus on retention early. Many startups focus too much on acquisition. Build features and experiences that keep users coming back.
Build bilingual brands. Whether you’re local expanding abroad or international coming in, make sure your brand can speak both Vietnamese and English effectively.
Lean on the ecosystem. Vietnam now has a growing number of incubators, tech communities, and angel investors. Connect early and often.
Plan beyond trends. Instead of copying the latest crypto or delivery model, build with a five-year horizon. Real business models take time.
Vietnam rewards speed, but also punishes shortcuts. Founders who combine hustle with strategic focus are the ones who’ll turn early chaos into long-term growth.
30. New Zealand sees nearly 60% of startups fail in their first 3 years
A peaceful base with global ambitions
New Zealand is often overlooked in global startup conversations, but it has a strong, tight-knit entrepreneurial scene. With a culture of innovation, government support, and growing investor interest, it’s quietly producing solid startups.
Still, about 60% of startups in New Zealand fail within their first three years, mostly due to scale and funding challenges.
What contributes to startup failure in New Zealand?
Small domestic market. With under 5 million people, there’s limited room to grow locally. Many startups struggle to scale beyond borders.
Limited venture capital. While angel investing is growing, Series A+ capital is harder to come by, especially for non-tech startups.
Geographic isolation. Physical distance from larger economies makes networking, partnership-building, and expansion costlier.
Under-marketing. Kiwi humility leads many founders to underplay their brand. This limits visibility in both local and global markets.
DIY syndrome. Founders often try to do everything themselves, leading to burnout and missed opportunities for expert help.
What New Zealand founders can do to increase success
Think export from day one. Design your business to go beyond NZ. This includes branding, pricing, compliance, and logistics.
Leverage diaspora networks. New Zealanders abroad can be your first customers, investors, or partners. Tap into those global connections.
Build strong advisory teams. Surround yourself with mentors who have scaled globally. Learn from their wins and failures.
Apply for international programs. New Zealand startups are well-regarded. Join Asia-Pacific or U.S.-based accelerators to gain exposure and credibility.
Promote your story. Get comfortable pitching. Attend events. Share your mission. A strong public profile attracts opportunities.
New Zealand is calm, smart, and stable — a great foundation for building. Founders who think global while staying grounded in local values are the ones who make it.
Conclusion
No matter where you are in the world, one thing is clear: startups are hard. Whether you’re in Singapore with low failure rates or in India or Indonesia where most ventures don’t survive, the core challenge remains the same — turning a big idea into something real, useful, and sustainable.
