Abstract: There is no more ambiguous or better studied issue in the field of small businesses than what contributes to their failure. Given the critical role that the small businesses play in the economy, the economic consequences of their failure can be disastrous. However, there is no definitive answer to the reasons beyond the small businesses failure. This study attempts to examine and analyze the catalysts of small businesses failure in general, and in the Egyptian market in specific. Success in business is never guaranteed. It is not based on luck. It depends primarily on the owner's foresight and on the organization performance. Even though, it still cannot be assured. In order to avoid business failure, it is necessary to understand the factors leading to this failure and how to successfully overcome them. The most common factors causing small businesses' failure may include: lack of funding, mismanagement of resources, lack of qualified personnel, faulty business model and wrong feasibility study.