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How many businesses fail each year?

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Quick Answer

Over two decades, up to 75 percent of businesses in certain fields fail. Survival rates follow a universal downward trend, as the years of operation increase, with 50 percent of businesses failing after 5 years and 75 percent failing after 17 years, notes U.S. Bureau of Labor Statistics.

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Full Answer

Between 1994-2010, the survival rates of private establishments, with regard to starting year and years of operation, range between 25 to 50 percent, reports U.S. Bureau of Labor Statistics, abbreviated as BLS.

The BLS utilizes a Business Employment Dynamics program, abbreviated as BED, to present data on entrepreneurship in the U.S. economy. BED data also displays survival rates by industry, showing that health care establishments survive longer over time, as opposed to construction businesses.

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