More risky than service businesses are retail stores and restaurants. Unze said the start-up failure rate there is about 70 percent. The reason is competition from big-box retailers and chains. A corner bookstore sounds warm and fuzzy. People call all the time for a nice little bookstore.
Restaurants have the same problem.
Chains continue to build here. Ray Garcia, director of the Albuquerque Small Business Development Center, said the biggest mistake entrepreneurs make is overlooking market research. When you go into business, you're making an investment. You put money in to make money. People think if they like a product, they'll put it out there and everybody will like it.