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There are several reasons for that. The most important one statistically: almost any start-up is by definition a 'small business' in the beginning, and the failure rate for start-ups can (depending on what field they are active in) run up to 92%. So start-up failure rates heavily influence the general failure figures for small businesses. This influence is all the more significant as the number of start-ups has grown enormously over the last 10 years.

A second reason is that small businesses cannot buy their goods in large quantities, so they cannot demand big discounts that they can pass on in their retail price. But they have to compete in a market where internet-buying has in the last ten years more or less exploded in volume. So they are hardest hit if they are active in fields where the Internet offers a lot of buying options at cut-rate prices, or in fields where big retailers are active.

Finally, small businesses today are more vulnerable than bigger ones through lack of financial reserves and restrictive lending practices by banks in this sector.

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