Why Young Startups Fail in Their Early Years: A Comprehensive Analysis of Critical Factors and Systemic Challenges

Author(s)	Ms. Ritika Sanjeev Singh, Ms. Mrunal Prashant Khandelwal, Ms. Ritika Sunil Dharmkamble, Dr. Suraj Kamble, Ms. Riya Sandeep Rahane
Country	India
Abstract	This research paper examines the key reasons behind the failure of young startups in their early years. Using secondary research and case studies, the study identifies product-market misfit, financial mismanagement, team conflicts, premature scaling, and competition as major causes of startup failure. The findings show that startup collapse usually results from multiple interconnected factors rather than a single issue. The paper also provides recommendations to improve startup survival and strengthen entrepreneurial ecosystems.
Keywords	Startup Failure Entrepreneurship Product-Market Fit Venture Capital Early-Stage Startups Financial Management Premature Scaling Founder Psychology Startup Ecosystem Business Sustainability
Published In	Volume 8, Issue 3, May-June 2026
Published On	2026-05-19

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International Journal For Multidisciplinary Research