Abstract Purpose In order to deeply explore the impact of internal governance structure on the failure of start-up enterprises in the manufacturing industry, this thesis takes manufacturing enterprises delisted from the NEEQ as the research objects. Design/methodology/approach This thesis defines those delisted compulsorily and those applying for delisting voluntarily for being unable to meet financing expectations as unsuccessful enterprises through literature research and based on the analysis of reasons for delisting. By collecting data of enterprises delisted from the NEEQ in 2017 from Wind Database and the website of NEEQ, and matching them with data of successful enterprises, the thesis also carries out empirical research and analysis of the impact of factors on entrepreneurial failure. Findings The results show that: the size of the board of directors is positively related to the failure of enterprises, which means that the larger the board of directors is, the greater possibility of failure an enterprise may face; there is no correlation between the number of independent directors and the failure of an enterprise, which may be due to the fact that compared with those listed on the main board, the small and medium-sized board and the growth enterprise board, most of enterprises listed on the NEEQ carry out shareholding reform just several months before their listing. The NEEQ does not require listed enterprises to have independent directors, so the impact of the number of independent directors is not significant; the combination of chairman and general manager is negatively related to the failure of enterprises; the concentration of ownership is negatively related to the failure risk of enterprises; the participation of the actual controllers in corporate operation and management will increase the failure risk of enterprises, and this impact will be intensified with the rise of ownership concentration. Research limitations/implications This thesis measures entrepreneurial failure in a qualitative way; secondly, it has limitations in the applicability of research conclusions; thirdly, the research quality of this thesis is subject to the integrity and timeliness of data. Practical implications The findings of the research can offer practical guidance for small and medium-sized manufacturing enterprises in China to establish the favorable corporate governance structure and enhance their growth, and also are helpful for the enrichment and development of relevant corporate governance theories. In addition, the findings also provide some thoughts on the development of the manufacturing start-up enterprise that the author works for. Social implications The research of this thesis is mainly based on the fact that China’s real economy is generally listless after the global financial crisis, and the Chinese manufacturing industry confronts the tremendous obstacles in the process, especially start-up manufacturing enterprises, which have developed for many years in a favorable environment. Keywords: entrepreneurial failure,start-up enterprises,internal governance structure,manufacturing industry