The Percentage of Businesses That Fail and How to Boost Your Chances of Success
from Lending Tree, May 2nd, 2022 (excerpts)
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, commissioned or otherwise endorsed by any of our network partners.
Nearly 1 in 5 U.S. businesses fail within the first year, according to the latest data from the U.S. Bureau of Labor Statistics (BLS). With 32.5 million small businesses across the nation, some are undoubtedly bound to fail, whether small or large.
Businesses can falter for various reasons, including financial constraints, workforce issues and owner burnout. Plus, the percentage of businesses that fail can vary widely based on the state or industry, according to the latest LendingTree analysis.
- 18.4% of private sector businesses in the U.S. fail within the first year. After five years, 49.7% have faltered, while after 10 years, 65.5% of businesses have failed.
- Hawaii sees the highest business failure rate within the first year. In the Aloha State, 25.4% of businesses fail in that first year, followed by the District of Columbia (25.1%) and Kansas (23.2%). ….
Percentage of businesses that fail in the U.S.
The business failure rate in the U.S. within the first year is nearly 20% — 18.4%, to be exact — according to a LendingTree analysis of BLS data…./
Highest business failure rate within 1 year: Hawaii, D.C., Kansas
Thirty-one states and the District of Columbia have a higher percentage of businesses that fail in the first year than the nationwide rate of 18.4%. Hawaii tops that list at 25.4%, followed by D.C. (25.1%) and Kansas (23.2%)…
read … Full Report
PBN: Hawaii had nation’s highest failure rate for new businesses during Covid, report finds
|Business failure rate within 1 year
|Business failure rate after 5 years
|Business failure rate after 10 years