Business Failure Statistics

Don’t Be One of the Small Business Failures
How to Avoid Business Failure

With a ton of resources on business failure statistics (see below for details), I decided to consolidate it to the most recent and accurate to this year.

Although we could nit-pick the percentages, it’s best to just look them over and make the decision what side of the statistic you will be on. And even though these are statistics, you don’t have to be a part of it (at least not be on the small business failure part of it!) Choose now to be the top 10% of those who flourish.

Your chances of success are going to depend on what you do, how you do it, and how dedicated you are.

Please read that last sentence again and again, until you believe in yourself.

Okay are you ready to see what business failure statistics are? Remember these are not your small business failures statistics!


Statistics show that 8 out of 10 new businesses fail within the first three years.

A study done by Inc. magazine and the National Business Incubator Association (NBIA) (a home based business review association) revealed that 80 percent of new businesses fail within the first five years.

And the newest statistics show that over 80% of new businesses fail within their first year.

David Birch, a former head of a research firm specializing in studying small business data, (called the "I Had No Idea" syndrome) states that the would-be entrepreneurs don't realize what's truly involved with running a business.

According to Birch’s: what is your chance of success?

  • First year: 85%
  • Second: 70%
  • Third: 62%
  • Fourth: 55%
  • Fifth: 50%
  • Sixth: 47%
  • Seventh: 44%
  • Eighth: 41%
  • Ninth: 38%
  • Tenth: 35%
"Once you've hit five years, your odds of survival go way up," Birch said. "Only two to three percent of businesses older than five shut down each year."

So why am I talking about failure? Because you success is dependent on it. I’ve heard it once said, “Failure only happens when you don’t get up.” Knowing statics is only to know what happens and how much harder you need to fight for your success.

"If you plan to be successful and failure is not an option,
then you will succeed at all you do!"
~ Kelly Ann Evers

More Failure to Success Help

How to Succeed in Business

Setting Goals and Understanding the Importance of It

Return to WAHM Business Ideas from Business Failure Statistics

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