A year of good business conditions tends to be followed by large increases in the total number of businesses. In general, the number of firms increases with increases in human population, total personal income and per capita income and since these factors have increased regularly, the total number of small businesses usually rises every year. This growth is not free of growing pains, however. At the same time new businesses are being born other businesses are being discontinued. Still others discontinue for reasons such as the death or retirement of the proprietor, the dissolution of a partnership, or the sale of the business to a new owner.
Younger businesses tend to discontinue first.
Many do not make it through the first year. So, your chances of success improve the longer you stay in business. Poor management is the largest single cause of business failure. Inc. Many factors may adversely affect individual firms over which owners have little control. In such cases, the astute manager can often soften the blow or, sometimes, change adversity into an asset.