Two thirds of small businesses achieve success within four years of set-up, according to new research on entrepeneurship by Ulster Bank.
The research also shows that among the companies who fail to succeed, the highest failure rates occur in years one and four after set-up.
It found that small businesses have a higher chance of failure than larger businesses. Poor marketing, weak financial control, lack of strategic planning, inadequate liquidity and a lack of market awareness are commonly identified as internal causes of small business failure.
Data from Forfas indicates a failure rate of 37.5% after five years. A regional analysis of this data suggests a regional spread of failure rates ranging from a high of 47.7% in the west to as low as 26.1% in the midlands.
