The Small Business Watchdog

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What is the survival rate for new firms?

October 19th, 2011 · 1 Comment

What is the survival rate for new firms? 

Seven out of ten new employer firms last at least two years, and about half survive five years. More specifically, according to new Census data, 69 percent of new employer establishments born to new firms in 2000 survived at least two years, and 51 percent survived five or more years. Firms born in 1990 had very similar survival rates. With most firms starting small, 99.8 percent of the new employer establishments were started by small firms. Survival rates were similar across states and major industries.

Source: U.S Dept. of Commerce, Bureau of the Census, Business Dynamics Statistics. Note that the figures could be skewed slightly by the rare occurrence of new firms opening multiple establishments in their first few years.

Tags: Research & Statistics

1 response so far ↓

  • 1 Josh Browning // Oct 28, 2011 at 7:41 am

    Wow, I’m surprised at how quickly those businesses die! I’m starting my own small business, doing small business analytics and statistical consulting, and this is some useful information. Thanks!