The paper is trying to identify the reasons for the firm’s failure in today’s globalized market environment. The objective of the paper is solely based on why the firms are not meeting up their goal to exist in the market. Some firms appear and disappear without even government registration. So it is harder to collect actual data. The study of the paper is exploratory and research area is Industrial sector of developing countries. Multiple E-books, PDFs, previously published research works and the journals and articles have been employed to come up with the conclusions. More than managerial and technological flaws in the business the political, economic and socio-cultural systems play vital roles in the business. It is necessary to get enough subsidies and free environment for the firms to grow up freely. Instead of working on tight rules and regulation a country should emphasize on providing a good business environment and sufficient infrastructure for the economic progress.