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How Long Does the Average Small Business Last?

The success rates of small businesses vary widely. According to the U.S. Bureau of Labor Statistics, about half of all firms fail in the first year. By the fifth year, only 30 percent are still in business. By the end of the decade, only 30 percent remain in operation. There are several variables that influence this rate. Here are some of the most common reasons why small businesses fail. However, you should keep these factors in mind.

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Entrepreneurs should have a never-say-die attitude when starting a small business. According to the SBA and the U.S. Census Bureau, 20 percent of small businesses fail within the first five years. Even at five years, less than half of all small businesses are still in existence. It’s important to remember that a large percentage of small businesses fail within the first few years. Approximately 400,000 new small businesses are founded every year.

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The failure rates of small businesses are higher than those of larger companies, as most fail within the first five years. Only 30 percent of small firms survive after ten years. Although these figures are lower than the national average, they’re still impressive. Despite the high percentage of failures, there are still many ways to succeed. You must maintain your enthusiasm and remain focused on your goals. And remember that you need to be a “never-say-die” person.

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