Top 10 Reasons Why Most New Businesses Will Fail in 2027. Chances are you’ve heard the statistics many times before. According to the U.S. Small Business Administration, only seven out of ten “new employer” firms survive at least two years, and only half will last five years. And these numbers refer only to businesses that have hired employees – if you consider one-person work-at-home businesses, the number of new business failures would almost certainly be higher. If you’ve just started a new business yourself, or are considering doing so, it’s important to understand exactly why so many new businesses are likely to fail in the coming year, so you can avoid it happening to you.