5 Small Businesses That Have High Failure Rates

2. Food Wholesalers

Industry Value (2022): $121.12 Billion

Net Margin (2022): 1.27%

Companies aimed at selling niche and perishable food items are most likely to fail. The market for food wholesalers is highly saturated making it hard for small business owners to penetrate the market. Moreover, a well-diversified business may require high startup costs. However, businesses can prevent high failure by specializing in the sale of long-lasting products.