Analysis Shows Variations in US Business Failure Rates by State and Sector

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.

States with Lowest Failure Rates Washington 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.

Broader Economic Context Surveys 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. 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.