Hi Madged!
Below you will find the results of my research about statistics on
longevity of companies in the U.S.
PRODUCTIVITY AND FIRM DYNAMICS: EVIDENCE FROM MICRODATA
WORKSHOP ON FIRM-LEVEL STATISTICS, 26-27 NOVEMBER 2001
?This paper presents evidence on productivity growth and firm dynamics
for ten OECD countries over the past decade. This paper was published
in the OECD Economic Outlook, No. 69, June 2001, Chapter VII.?
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Firm survival rates at different lifetimes
United States
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Manufacturing
After 2 years 76%
After 4 years 57%
After 7 years 43%
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Business service sector
After 2 years 72%
After 4 years 58%
After 7 years 42%
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The survival rate is the probability that an entering firm will survive (j) years.
Page 14: Figure VII.5.
Sources: OECD, and Baldwin et al. (2000)
http://www.oecd.org/dataoecd/32/62/2669736.pdf
Page 5
http://www.ine.pt/novidades/semin/round_table/papers/paper/OECD_Paper.doc
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Redefining Business Success: Distinguishing Between Closure and
Failure (PDF file) - This paper uses government data sources to
analyze business survival and the success status of closed businesses.
It was published in the August 2003 edition of Small Business
Economics, a journal from Kluwer Online.
?66 percent of new employers survive two years or more, 50 percent
survive four years or more, and 40 percent survive six years or more
These results are strikingly similar to findings from Phillips and
Kirchhoff showing about three-quarters of all businesses surviving two
years or more, or more, and about 40 percent surviving six years or
more.?
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New Firm survival rates by data source (percentages)
------------------------------------------------------------------Still
open after CBO CBO BITS
Responding Non-responding Employers
employers employers
1992?1996 1992?1996 1989?1998
2 yrs. 95.3 64.1 66.0
4 yrs. 75.4 45.0 49.6
6 yrs. - ? 39.5
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Notes:
?The CBO excludes C corporations; BITS figures exclude farms and firms
starting with multi-establishments (a relatively rare occurrence).
BITS survival rates per start year differed by a percent or two.?
?The CBO consists of a firm and owner database. The firm database was
used here except for a few owner variables (previous ownership, age,
education, and reasons for starting). These exceptions were matched to
the firm data and the owner with the greater experience or resources
was used.?
Source: SBA Office of Advocacy
http://www.sba.gov/advo/stats/bh_sbe03.pdf
===============================================================
From the IRCC Entrepreneurial Institute:
?The Program Director, Professor Arlene Green says ?Eighty percent of
all new small businesses fail in their first five years because of
inadequate front-end planning.?
?Professor Green is a full time faculty member of IRCC's Department of
Business Administration and Marketing Management. She is the recipient
of the Richardson Endowed Chair in Business and Entrepreneurship
?Golden Medallion Award for Teaching Excellence.?
http://www.ircc.cc.fl.us/atircc/progrcs/busind/entrep/entrep.html
===============================================================
Race and gender differences in business ownership and business
turnover: an empirical study using a new, unique data series.
Business Economics, Oct, 2002, by Richard J. Boden, Brian Headd
Table 2 may be of your interest.
TOP FIVE MAJOR INDUSTRIES IN TERMS OF 1992-1996 BUSINESS (FIRM)
SURVIVAL - RATES BY DEMOGRAPHIC CATEGORY OF OWNERSHIP
Here is the direct link to this article. Scroll down to the center of
the page to view the statistics.
http://www.findarticles.com/cf_dls/m1094/4_37/94774176/p11/article.jhtml?term=
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?The U.S. Small Business Administration has long stated that 75% of
small businesses fail in their first 5 years and that 50% of the
remainder fail by their 10th year. However, just 25% of franchise
operations fail within their first five years.?
Biztrek
http://www.biztrek.com/about.htm
===============================================================
Silicon Valley's Reality Check
?Eight out of 10 new businesses fail in their first five years -- in
any industry, not just high tech.?
This article originally appeared on CBS MarketWatch, June 6, 2001
By Scott McNealy
http://www.sun.com/executives/perspectives/check.html
===============================================================
BUSINESS INCUBATORS by Sen. John Breaux:
?According to some estimates, four out of five small businesses fail
in their first five years of operation.?
http://breaux.senate.gov/columns/2001718418.html
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?In general 80% of all small businesses fail in their first two years,
80% of those that remain in business will not make it past five years.
80% of those who do make it through five years will not make it
through ten years.?
://www.google.com/search?q=cache:K0fePUQ2u2QJ:www.well-net.com/work/selfem11.html+%22businesses++fail+in+their+first+*+years%22&hl=es&ie=UTF-8
(If this link does not function, just copy and paste it into your browser window.)
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?Dun and Bradstreet surveys show that 60 percent of businesses fail in
their first five years. Our surveys show that 80 percent of the
businesses helped by OHBBA are still going after four years.?
Division of Agricultural Sciences and Natural Resources / Oklahoma State University
http://www.okstate.edu/ag/agedcm4h/ag_news/ag@osu/ss98/ss98_8.htm
===============================================================
Five Lessons I Learned Starting and Running AeroAstro
By Rick Fleeter
According to Rick Fleeter, founder, President and CEO, AeroAstro Inc.,
95% of companies fail in their first 5 years, and of the remaining 5%,
maybe 0.1% become huge virtually instantly.?
http://www.mindspring.com/~rfleeter/fivelessons.htm
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Additional information that may interest you:
Canadian Statistics - Company Survival Rates
Atlantic Canada Opportunities Agency
http://www.unb.ca/econ/acea/P&P_2001_ThomasMandalecharts.pdf
===============================================================
Search criteria:
"Companies go out of business after * years"
?businesses fail in their first * years"
Business failure statistics
Business survival rates
Business failure statistics longevity "* years"
I hope you find this information useful!
Best regards,
Bobbie7 |
Clarification of Answer by
bobbie7-ga
on
17 Feb 2004 18:30 PST
Dear Madged,
This was a very difficult statistic to uncover, but thanks to the help
of my good friend and colleague Pinkfreud-ga, I can provide you with
the following figures.
From a Ruf Strategic Solutions press release dated June 5, 2001:
?Only 7 percent of all businesses in the U.S. have been in business
for 25 years or more.?
Source: Ruf Strategic Solutions
http://www.ruf.com/pdf/Press_Releases/ANNIVERSARY.PDF
Here is a statistic regarding family business longevity taken from the
article ?Understanding family-business survival statistics? by Craig
Aronoff. Craig Aronoff is one of the founders of the Family Business
Consulting Group
?30% of family businesses make it to the second generation, 10-15%
make it to the third and 3-5% make it to the fourth generation.?
SupplyHT.com
http://www.supplyht.com/CDA/ArticleInformation/features/BNP__Features__Item/0,5333,62304,00.html
I hope this helps!
Sincerely,
Bobbie7
|
