BusinessLogrBusinessLogr
  • Home
  • Stocks
  • Finance
  • Business
  • Company
  • Economy
  • Industry
  • Investing
  • Car News
  • Contact Us!
Reading: Small Business Failure Rates by Industry: The Real Numbers
Share
Aa
BusinessLogrBusinessLogr
Aa
  • Home
  • Stocks
  • Finance
  • Business
  • Company
  • Economy
  • Industry
  • Investing
  • Car News
  • Contact Us!
Follow US
© 2023 BusinessLogr News Network.
BusinessLogr > Industry > Small Business Failure Rates by Industry: The Real Numbers
Industry

Small Business Failure Rates by Industry: The Real Numbers

sristy
Last updated: 2016/12/03 at 4:22 PM
sristy Published December 3, 2016
Share
2 Min Read
SHARE

“Mamas don’t let your babies grow up to start construction companies,” could be the first line of a country song about new small business failure rates. Five years after starting, the share of mining companies remaining alive is nearly 15 percentage points higher than the fraction of construction businesses still in operation (52.3 percent versus 36.4 percent).

Five Year Survival Rates for Startups by Industry Sector

Small Business Failure Rates by Industry Sector
Source: Created from data from the Census Bureau’s Business Dynamics Statistics

In the figure above, I have plotted the five year survival rates for new companies founded in 2005 using data from the Census Bureau’s Business Dynamics Statistics.

While there are many sources of data on start-up failure rates, these are probably the best. They come from a longitudinal database of businesses that government economists and statisticians created by linking together annual administrative records, such as unemployment insurance filings. (The use of administrative records eliminates errors that emerge from efforts to survey company owners.)

Because the database was designed for researchers, the data are not presented in the most user friendly way. Therefore, I have reorganized them into a chart which shows small business survival rates by industry sector.

As you can see, the odds that a new business survives its early years vary a lot by sector. In order from highest to lowest five year survival rates, the sectors are:

  • mining (51.3 percent)
  • manufacturing (48.4 percent)
  • services (47.6 percent)
  • wholesaling and agriculture (47.4 percent)
  • retailing (41.1 percent)
  • finance, insurance, and real estate (39.6 percent)
  • transportation, communications and utilities (39.4 percent)
  • construction (36.4 percent)

Therefore, if you want to know about small business failure rates, it pays to understand them by industry sector.

[“source-smallbiztrends”]

You Might Also Like

Why a cutting-edge billing system is essential in 2025: Accelerate Your Telecom Growth

SEO for Life Sciences: How to Outrank Competitors and Drive Organic Traffic

Cognitive Market Research: A Method for Obtaining Industry-Specific Impactful Insights via Industry Blogs

How to Start a Blog That Makes You Money

Simulated intelligence Patterns in Telecom 2025: Tackling Basic Industry Difficulties

TAGGED: Business, by, Failure, industry, Numbers, rates, real, Small, the
sristy December 3, 2016
Share this Article
Facebook Twitter Email Print
Share
Previous Article 10 Online Fashion Startups To Watch
Next Article Financing Your Startup: Are Government Grants an Option?

Most Viewed Posts

  • Environmental thematic investing set for strong growth in 2022
  • Second income center in banks
  • T-Mobile Adds Mexico, Canada to Simple Choice Plan
  • Tieghan gerard income in banks
  • 20 Fitness Franchises: Planet Fitness and Beyond

Most Viewed Posts

  • Environmental thematic investing set for strong growth in 2022
  • Second income center in banks
  • T-Mobile Adds Mexico, Canada to Simple Choice Plan
  • Tieghan gerard income in banks
  • 20 Fitness Franchises: Planet Fitness and Beyond

Recent Posts

  • 14 Magnificent Blogs From Large Businesses to Inspire Your Content Marketing
  • Investing in Youth: The Role of Development Banks

© 2023 BusinessLogr News Network.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?