Young enterprises significantly contribute to fostering creativity and boosting national prosperity; however, many of them encounter substantial setbacks during their early stages. The study examines the major factors contributing to business failures by integrating scholarly works and analyzing real-world examples. Research suggests that an unmet marketplace need, coupled with insufficiently compelling offerings, continues to be the primary reason for failure in business ventures. Lack of financial resources, such as insufficient funds and poor management of cash flows, intensifies volatility. Business strategies lacking in scalability or profit potential frequently result from inadequate strategic foresight, leading to premature failure at the inception stages. Moreover, poor teamwork, disagreements among leaders, and a lack of flexible abilities impede productivity and strategic thinking. Exogenous factors like compliance hurdles, innovation shifts, and global economic fluctuations exacerbate inherent organizational flaws. This research incorporates findings from reports like the Startup Genome Report and analysis by CB Insights to classify failures based on both intrinsic factors related to strategy, finances, management, and extrinsic elements affecting market conditions and environments. The document underscores that achieving successful startups requires skill in strategy, precise market fit validation, robust management skills, and continuous improvement through repetition. This research provides an analytical model of how startups fail, helping business owners, financiers, and government officials manage risks effectively and make well-informed choices.