world
Analysis Shows Variations in US Business Failure Rates by State and Sector
A LendingTree analysis of Bureau of Labor Statistics data indicates that 22.1 percent of US private-sector businesses fail within their first year, rising to 65.3 percent after 10 years. Failure rates differ significantly by state, with Washington, D.C., recording the highest first-year rate at 32.9 percent.
Substrate placeholder — needs reviewAudio version
Tap play to generate a narrated version.
A recent LendingTree analysis of data from the Bureau of Labor Statistics examined survival rates for new US private-sector businesses over one, five, and 10 years ending in March 2025. 3 percent after 10 years. These rates vary by location and industry, highlighting differences in business conditions across the country.
9 percent, exceeding the national average by more than 10 percentage points. 3 percent. 8 percent.
state recorded the lowest first-year failure rate at 17.
3 percent after 10 years, above the national average. 7 percent. 6 percent. 4 percent. 5 percent, including areas such as legal, accounting, and engineering services. 3 percent.
from organizations like the U.S.
Chamber of Commerce indicate that small business owners have expressed concerns about inflation and the economic outlook. These concerns have led to caution in hiring and investment decisions. The LendingTree analysis provides data on business survival amid these conditions.
“One of the biggest problems is going in without a real focus on what you’re trying to accomplish and who you’re trying to serve. Starting a business is hard and incredibly risky. U.S. Chamber of Commerce, stated following a recent small business survey: "Views of the national and local economies have turned more pessimistic, concerns over inflation have jumped, and plans for future hiring and investment dropped markedly.”
" The analysis underscores the challenges new businesses face, particularly in certain regions and sectors, as economic conditions evolve.
