Why do so many startups fail?

chicagobooth.edu/review | The reality for more than two-thirds of entrepreneurs is that their startups will go out of business within the first few years. Why do so many startups fail, and how do you foster a startup culture without blinding people to the harsh realities of entrepreneurship? Hal Weitzman is joined by Chicago Booth's Scott Meadow, Waverly Deutsch, and Craig Wortmann (now with Northwestern University) in a panel discussion. 0:00 Intro 0:22 The numbers game: too many startups for the economy to absorb 2:00 Why low-barrier industries see the most failures 3:30 What separates the top 10% of startups that succeed 5:15 How to coach entrepreneurs: knowledge, skill, and discipline 28:02 The GrubHub example: what a successful founder actually did differently FAQ: Q: Why do so many startups fail? A: It's partly a numbers game — far more people attempt to start businesses each year than the economy can absorb, and many choose low-barrier industries with heavy competition. Q: What separates successful startups from the rest? A: The startups with real economic impact are the small share aiming for growth and disruption, not just replicating existing small businesses.