Approximately what percentage of businesses fail within the first three years?

• A. 25%
• B. 50%
• C. 75%
• D. 90%

Answer: (B)

The main idea is recognizing how risky it is to start a business and what a typical early-failure rate looks like. In many business studies, about half of new ventures don’t make it past the early years. For a three-year horizon, this translates to roughly 50% failing, which reflects common challenges like cash flow problems, inadequate planning, and not finding a real market need.

So the best answer is around 50% because it matches the widely used, rough benchmark that many startups struggle to survive the initial period. The other figures—about a quarter, three-quarters, or ninety percent—don’t align with the commonly cited level of risk for the early years, where roughly half fail rather than an extreme majority or a very small minority.