New business establishments: survival and longevity
June 14, 2005
Across sectors, 66 percent of new establishments were still in existence 2 years after their birth in the second quarter of 1998, and 44 percent were still in existence 4 years after their birth.
These survival rates did not vary much by industry.
Despite the early success of the "dot-coms" during the 1990s, the information industry had the lowest 2- and 4-year survival rates, 63 percent and 38 percent, respectively. Education and health services had the highest 2- and 4-year survival rates, 73 percent and 55 percent.
According to the conventional wisdom, restaurants should bring down the averages for the sector that includes them, because they are constantly starting and failing. However, the leisure and hospitality sector’s 2- and 4-year survival rates of 65 percent and 44 percent are only slightly below average.
Data used in this analysis are from the BLS Quarterly Census of Employment and Wages (QCEW) program. To learn more, see "Survival and longevity in the Business Employment Dynamics data", by Amy E. Knaup, Monthly Labor Review, May 2005. This analysis only includes completely new entrants—that is, new firms which open a single establishment.
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, New business establishments: survival and longevity on the Internet at https://www.bls.gov/opub/ted/2005/jun/wk2/art02.htm (visited January 17, 2017).
Recent editions of Spotlight on Statistics
Workplace injuries and illnesses and employer costs for workers’ compensation
Workplace injury and illness data and the costs to employers for workers’ compensation in natural resources, construction, and maintenance occupations.
A look at the future of the U.S. labor force to 2060
Projected long-term trends in the growth, size, and composition of the labor force.
Union membership in the United States
Historical trends in union membership among employed wage and salary workers; union membership by a variety of demographic characteristics.
A look at healthcare spending, employment, pay, benefits, and prices
Spending on healthcare, current and projected employment in the industry, employer-provided healthcare benefits, healthcare prices, and pay for workers in healthcare occupations.
Self-employment in the United States
Trends in self-employment by various demographic and socioeconomic characteristics, including both the unincorporated and the incorporated self-employed, as well as data on paid employees who work for the self-employed.