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1-year survival rates for new business establishments by year and location

March 04, 2024

Survival rates for new business establishments vary from year to year due to several factors, including the business cycle, industry, and location. In recent years, 1‑year survival rates (that is, an establishment still in business one year after the year in which the establishment was born) were generally lowest for establishments born in 2001 and 2008, both years in which recessions occurred.

1-year establishment survival rates (in percent) by census division, establishments born 1994–2022
Birth Year New England Middle Atlantic East North Central West North Central South Atlantic East South Central West South Central  Mountain   Pacific 

1994

80.9 80.9 79.4 79.9 79.7 79.5 80.7 80.3 77.4

1995

82.2 79.3 80.7 80.2 78.8 79.0 80.2 77.9 75.3

1996

81.2 79.9 81.4 80.6 76.3 78.8 80.7 78.2 73.8

1997

79.4 79.9 80.1 82.2 76.9 78.9 79.9 78.5 75.9

1998

83.2 81.0 81.8 82.3 82.0 79.6 79.3 78.2 76.8

1999

82.9 76.3 82.8 81.6 81.1 79.5 78.4 78.1 76.6

2000

80.5 79.1 79.4 80.7 80.7 76.5 78.1 76.4 75.4

2001

78.1 74.8 77.5 79.5 75.7 76.3 76.1 74.0 74.2

2002

78.5 79.2 79.8 80.5 77.5 78.6 78.1 76.8 77.9

2003

80.4 80.1 80.3 81.8 78.8 79.6 78.7 78.5 78.4

2004

79.2 81.4 79.3 80.8 78.0 79.2 79.3 78.8 77.7

2005

80.3 82.4 79.7 83.7 79.1 79.5 79.3 79.8 79.4

2006

79.2 80.2 78.7 79.2 77.0 78.3 79.1 78.1 77.5

2007

79.5 79.8 77.2 79.4 75.9 78.4 78.4 75.5 76.4

2008

76.8 78.0 75.3 76.0 71.4 75.9 77.1 72.5 76.9

2009

77.3 79.3 76.5 80.0 75.9 76.9 77.4 74.2 75.5

2010

82.5 80.9 78.9 79.8 77.3 77.1 78.1 76.6 78.2

2011

82.9 79.5 78.5 81.2 78.3 78.8 79.3 77.7 80.5

2012

80.7 77.9 79.8 78.0 77.5 78.0 79.8 77.9 81.9

2013

80.4 79.2 80.0 79.8 78.6 78.4 80.0 78.6 80.8

2014

81.2 79.9 79.5 79.9 78.8 79.2 80.8 78.0 80.3

2015

80.3 79.6 81.0 78.8 79.1 79.1 79.5 78.2 80.2

2016

81.5 79.8 78.8 81.0 77.7 79.7 79.3 78.5 81.5

2017

78.9 79.5 79.9 75.1 78.3 79.5 79.3 78.9 80.3

2018

79.0 79.5 79.4 77.8 79.2 79.9 79.5 78.2 80.5

2019

80.7 77.7 78.4 77.4 76.7 80.6 79.3 77.7 82.9

2020

80.9 80.2 82.1 79.1 80.6 80.0 81.5 80.9 81.6

2021

77.9 79.6 78.4 75.7 76.7 78.3 78.4 77.2 84.6

2022

77.6 78.6 77.3 75.6 76.1 77.6 77.8 74.4 77.1

Note: The birth year is the year before the calculation of the 1-year survival rate.

While almost all census divisions saw declines in survival rates during the recessions in 2001 and 2008, the two periods differed. In 2001, establishments in the Mountain division had the lowest 1‑year survival rate, while West North Central division establishments had the highest. In 2008, 1‑year survival rates were lowest in the South Atlantic division and highest in the Middle Atlantic division.

Most census divisions saw increases in 1‑year survival rates for establishments born in 2020, followed by declines in 2021 and 2022.

Since these data were first published in 1994, the highest 1‑year survival rate was recorded in the Pacific division, with 84.6 percent of establishments born in 2021 surviving the first year. The lowest 1‑year establishment survival rate was in the South Atlantic division, 71.4 percent for establishments born in 2008.

In addition to having the lowest survival rate in the series, the South Atlantic division also experienced the most change in the 1-year establishment survival rate of any region, changing a total of 50.9 percentage points since the start of the series.

These data are from Business Employment Dynamics program. To learn more about establishment survival data or to access more data, see Establishment Age and Survival Data.

The states (including the District of Columbia) that compose the nine census divisions are:

  • Northeast
    • New England Division: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont
    • Middle Atlantic Division: New Jersey, New York and Pennsylvania
  • Midwest
    • East North Central Division: Illinois, Indiana, Michigan, Ohio and Wisconsin
    • West North Central Division: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota
  • South
    • South Atlantic Division: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia
    • East South Central Division: Alabama, Kentucky, Mississippi and Tennessee
    • West South Central Division: Arkansas, Louisiana, Oklahoma and Texas
  • West
    • Mountain Division: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming
    • Pacific Division: Alaska, California, Hawaii, Oregon and Washington
SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, 1-year survival rates for new business establishments by year and location at https://www.bls.gov/opub/ted/2024/1-year-survival-rates-for-new-business-establishments-by-year-and-location.htm (visited May 21, 2024).

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