New Business Survival Rate by State - 2026 Data
The National Picture
According to the Bureau of Labor Statistics, about 20% of new businesses fail within the first year, and roughly 50% fail within five years. But survival rates vary significantly by state.
States with Highest Survival Rates
States with strong local economies and business support infrastructure tend to have higher survival rates:
- Utah - 83% first-year survival rate
- Colorado - 82%
- Washington - 81%
- Texas - 80%
- North Carolina - 80%
Why This Matters for Service Providers
If you sell services to new businesses, focusing on states with higher survival rates means your clients are more likely to stay in business and continue paying for your services. It also means less churn in your client base.
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