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 http://www.bls.gov/opub/ted/2005/jun/wk2/art02.htm (visited June 25, 2016).
Recent editions of Spotlight on Statistics
Employment and Wages in Healthcare Occupations
Healthcare occupations are a significant percentage of U.S. employment. Some of the largest and highest paying occupations are in healthcare. This Spotlight examines employment and wages for healthcare occupations.
Fifty years of looking at changes in peoples lives
Longitudinal surveys help us understand long-term changes, such as how events that happened when a person was in high school affect labor market success as an adult.
- A look at pay at the top, the bottom, and in between
The Spotlight examines how earnings and wages have changed over time and how they differ within a geographic area, industry, or occupation.