Half of New Businesses Fail—Here’s How to Be in the Winning Half

🚀 Understanding the PeerView AI Customer Population

Every year, millions of new businesses are launched in the U.S. But many struggle to survive, sometimes for reasons as simple as choosing the wrong market.

PeerView AI's mission? Help entrepreneurs launch only in the most viable markets. With the right market insights, new businesses can avoid costly missteps and position themselves for long-term success.

📈 The Landscape of New Businesses

The U.S. continues to see a surge in entrepreneurial activity:

• 5.5 million new business applications were filed in 2023.

• 1.8 million of these are classified as high-propensity businesses, meaning they are likely to hire employees and establish a lasting presence.

• Among them, 900K - 1M businesses fall into industries where PeerView AI’s market insights can provide substantial value, including retail, food services, health services, and personal care.

⚠️ The Reality of Business Failures

Despite the optimism surrounding new ventures, survival rates paint a stark picture:

• 23.2% of businesses fail in their first year.

• 36% fail by year three.

• 48% fail by year five—meaning nearly half of all businesses don’t make it beyond five years.

These statistics have remained consistent over decades, highlighting a persistent challenge for new business owners.

🔍 Could These Failures Have Been Avoided?

One of the biggest reasons for failure? Lack of market demand.

• Studies show 35% of business failures happen because there simply wasn’t enough demand for their product or service.

Applying this to PeerView AI’s relevant business population:

• First-year failures avoidable with market research: 146,160 businesses

• Five-year failures avoidable with market research: 302,400 businesses

Had these businesses received proper market insights before launching, many could have pivoted, adjusted, or chosen a better market, improving their chances of success.

💰 The Financial Cost of Business Failures

Business closures come with significant financial consequences:

• The average financial loss per failed business is estimated at $50,000.

• Estimated total losses due to avoidable failures:

This represents a massive economic inefficiency—one that market research and data-driven decision-making could drastically reduce.

🚀 The Bigger Picture: The True Impact of PeerView AI

Preventing bad business ideas is one thing. But what if we go further?

💡 What if the entrepreneurs who would have failed instead launched in the right market?

💭 What if more people started businesses, confident that their idea had real demand?

🔑 With PeerView AI, entrepreneurs can make data-driven decisions, reduce failure rates, and increase their likelihood of success from day one.

📊 Market research isn’t just about avoiding failure—it’s about ensuring more businesses thrive. 🔥

What’s Next?

At PeerView AI, we’re committed to empowering entrepreneurs with the data they need to make smart, informed decisions.

💬 Have you ever launched a business? What insights would have helped you succeed? Share your thoughts in the comments! 👇