Small businesses are much more likely to fail than large businesses, especially during economic downturns, because of:

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Small businesses often struggle with management issues, such as lack of experience or expertise in certain areas. They may also find it challenging to navigate government regulations and meet compliance standards. Additionally, small businesses may struggle to secure adequate financing during difficult economic times, which can ultimately lead to failure. Therefore, all of these factors contribute to the higher failure rate of small businesses compared to larger ones.

Small Businesses Are Much More Likely to Fail Than Large