Startup Business Failure Rates by Industry (Stats and Infographic)

Far be it from me to put you entrepreneurs off of starting up your own business, as I think it is one of the most exciting and self affirming things you can do, but I feel it is my duty to point out that there are risks associated with starting a new business.

A US analysis of small business success rates reported on statisticbrain.com suggests that 25% of small businesses fail in the first year, 36% fail by year 2 and 44% fail by year 3. Of course, this is US data but I wouldn’t be surprised if the trend was replicated in the UK and in other major economies. The statistics brain research also showed that some sectors had higher failure rates than others with Finance, Insurance, Real Estate, Education Health having the highest success rates and the Information sector having the lowest success rates by some way.

Businesses With Best Success Rates After 5 Years.

The study also showed the businesses with the best success rate after 5 years and these were:

  1. Religious Organizations
  2. Apartment Building Operators
  3. Vegetable Crop Productions
  4. Offices & Clinics of Medical Doctors
  5. Child Day Care Services

Businesses With Worst Success Rates After 5 Years.

The study also showed the businesses with the worst success rate after 5 years and these were:

  1. Plumbing, Heating, Air Conditioning
  2. Single-Family Housing Construction
  3. Grocery Stores
  4. Eating Places
  5. Security Brokers and Dealers
  6. Local Trucking

As well as this a separate infographic by top-business-degrees.net reports some similar stats in relation to small business success rates, although their stats are a little more pessimistic, suggesting that 50% of business fail within the first 5 years and 95% fail within the first five years.

Highest Risk Businesses

In this infographic they identified the highest risk area to start a business was in retail stores (80% fail in five years) followed by Independent Restaurants (60% failure rate).

If you are planning to start your own coffee shop or restaurant, I recommend that you read this bestselling book to help you on your way: Start up and Run Your Own Coffee Shop and Lunch Bar.

Alternately, if you are planning to start your own retail business/shop, then I’d strongly recommend this bestselling book written by a renowned retail expert, The Retail Champion: 10 Steps to Retail Success

infographic

Recommended reading for entrepreneurs

Join The FreshBooks Affiliate Programme Today and Start Earning Referral Income

Are you a business blogger, owner of a content site, review site or are you perhaps very influential on social media?

If so, you should join this the FreshBooks Affiliate Program today and turn your trusted recommendations into income.

If you join the scheme you will earn some of the highest commission rates in the industry:
Earn $5 per free trial signup plus $55 per paid subscriber.

There is also a very generous cookie window – which means that vVisitors who click your affiliate link have up to 120 days to start a free trial with Freshbook, which is important visitors can take a month or two to decide.

If you are a high performer you’ll find plenty of VIP offers only open to the top level referrers.

FreshBooks has a dedicated in-house management & partner support team ready to help you with your queries. They are proactive and give advice and support on how to improve your content to attract converting visitors. You’ll receive article ideas, social media tips and strategies, email & newsletter ideas, performance insights and much more on a regular basis from the Freshbooks team to help you boost sales.

Its really easy to join and you don’t need any special skills. Just post your FreshBooks affiliate link to a blog, article, social media account, forum or email etc.. and you are ready to earn money from referrals.

Join The FreshBooks Affiliate Programme Today and Start Earning Referral Income

 

This entry was posted in Uncategorized. Bookmark the permalink.

Add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *