3.37 – What is the survival rate of small businesses?

What is the survival rate of small businesses?

Survival rates of small businesses vary from country to country. They are also affected by economic cycles. In extreme downturns caused by such things as a global financial crisis or a virus epidemic, failure rates will be higher than normal.

Some statistics

In the UK 25% of all small businesses fail in their first year. 75% of all businesses fail within three years.

In the USA, according to data from the U.S. Bureau of Labor Statistics, https://www.bls.gov/about 20 percent of small businesses fail within their first year. By the end of their fifth year roughly 50 percent of small businesses fail.

 

By John Hawkey

John is the founder and owner of Freeforumofideas.com.