Small Business Mortality Rate

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Bill Carter
Business Consultant, United States

Small Business Mortality Rate

State, local and federal government resources are expended each year to encourage entrepreneurship and small business start ups...
85% of all US jobs are created through small business.
However, almost every year the SBA, in its Annual Report to the President, states that for every 10 new businesses that start up each year, 6-7 will not be around in 4-5 years and another 1 or 2 will disappear during year 6 or 7. (This would say we have a pretty consistent and chronic annual "Job Loss" statistic to go along with the often sighted "annual job creation" statistic).
There are many books and articles written every year explaining the top 10 "reasons why businesses fail" but there seems to be a "timing" factor at play here. Something fairly consistent seems to be happening relatively soon after start up according to the SBA's annual report.
What's is going on here? Seems we have an alarming and chronic "small business infant mortality" rate...


James Roberts, United States

Small Business Mortality Rate

I have started new businesses from the ground up from the age of 15 in 1975. This statistic has been... Sign up

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