The reasons might vary from one business to another but the most common reason for failures of businesses within first five year is running out of cash.

Bad financial decisions, unrealistic marketing strategies, Pricing/cost issues and losing passion in business within few years of starting the business could be other reasons for businesses failing within 5 years.

Add to the above, the over estimated sales expected in first 5 years. Most of the startups today inflate their estimated sales numbers to unbelievable numbers these days to impress investors. Some of them do get funded but others who do not get funded live with the false hope of achieving the unrealistic goals.

Predictably, they fail.