Summary
A recent analysis by LendingTree of U.S. Labor Department data shows that 22.1% of small businesses in the U.S. fail within their first year. The survival rates vary by state, with Washington, D.C. having the highest first-year failure rate at 32.9%. Some sectors, like the information industry, have higher failure rates than others.
Key Facts
- 22.1% of new U.S. businesses fail within their first year.
- By ten years, 65.3% of businesses close.
- Washington, D.C. has a first-year failure rate of 32.9%, the highest in the U.S.
- Washington state has the lowest first-year failure rate at 17.5%.
- The information industry has the highest first-year failure rate at 28.4%.
- Professional services have a 25.5% first-year failure rate.
- Business owners are increasingly worried about inflation and economic conditions.
