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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.
United States Department of Labor
