As entrepreneurs worldwide seize new opportunities, global business formation surged to record highs in 2021-2022, yet the stark reality of survival rates reveals the dynamic and competitive dance of creation and closure that defines our economic landscape.
Key Takeaways
- In 2021, the net business formation rate in the United States, calculated as new business applications minus closures per 1,000 firms, stood at 12.4%, the highest since tracking began in 2004
- Between 2019 and 2020, high-propensity business applications in the US surged by 28%, reaching 1.2 million, driven by pandemic-related entrepreneurship
- In Q4 2022, US business applications totaled 1,145,389, with a 7-day moving average peaking at 5,200 daily filings
- The 1-year survival rate for new US businesses in 2021 cohort was 78.5%, per BLS
- UK 3-year survival rate for 2019 startups: 42%, ONS data 2022
- In 2021, 80% of Canadian new firms survived year 1, StatsCan
- In 2022, average US firm growth rate for survivors was 2.5% in employment, BLS BED
- UK high-growth firms (20%+ sales growth) share: 7% of all firms 2021, ONS
- Canadian firms expanding employment by 10%+: 15% of SMEs 2022, StatsCan
- US average employment growth rate for expanding firms 4.2% Q4 2022, BLS BED
- UK job creation by new firms: 1.2 million net 2022, ONS
- Canada SME employment growth 3.1% 2022, StatsCan
- US business death rate 2021: 5.1 per 1,000 firms, Census BDS
- UK firm exit rate 2022: 8.2%, ONS
- Canada employer enterprise deaths: 82,400 in 2021, -10% from births, StatsCan
Global entrepreneurship surged post-pandemic, but most new businesses struggle to survive long-term.
Closure
1US business death rate 2021: 5.1 per 1,000 firms, Census BDS
Verified2UK firm exit rate 2022: 8.2%, ONS
Verified3Canada employer enterprise deaths: 82,400 in 2021, -10% from births, StatsCan
Verified4Germany business deaths: 240,000 in 2022, net -2% vs births, Destatis
Directional5France cessations: 300,000 in 2022, down 5% YoY, INSEE
Single source6Australia exits: 340,000 in FY2022, exit rate 13.5%, ABS
Verified7Japan closures: 110,000 in FY2022, +3%, METI
Verified8India MSME closures est. 20% annual, informal heavy, MoMSME 2022
Verified9Brazil MEI closures: 1.8 million 2022, SEBRAE
Directional10South Korea exits: 950,000 2022, KED
Single source11Mexico firm deaths: 800,000 2022, DENUE
Verified12EU-27 closures: 1.8 million 2021, Eurostat
Verified13China firm exits: 28 million 2022, SAMR
Verified14Italy deaths: 520,000 2022, Unioncamere
Directional15Spain closures: 85,000 2022, INE
Single source16Netherlands exits: 150,000 2022, CBS
Verified17Sweden closures: 65,000 2022, SCB
Verified18Poland exits: 280,000 2022, GUS
Verified19Turkey closures: 95,000 2022, TOBB
Directional20OECD avg exit rate 9.2% 2021
Single source21Singapore deregistrations: 35,000 2022, ACRA
Verified22UAE business liquidations: 5,200 2022, DED
Verified23US closures job loss 7.5 million 2021, BLS BED
Verified2470% of US closures in retail/services 2021, BDS
Directional25UK insolvencies peaked 25,000 2022, Insolvency Service
Single source26NZ exits 40,000 FY2022, StatsNZ
VerifiedClosure Interpretation
Despite the familiar funeral march of global business closures, the statistics reveal a surprisingly resilient—and even healthy—global economy, where the high turnover of ideas and ventures is less a eulogy and more the sound of fierce competition and creative destruction doing its necessary, if ruthless, work.
Employment
1US average employment growth rate for expanding firms 4.2% Q4 2022, BLS BED
Verified2UK job creation by new firms: 1.2 million net 2022, ONS
Verified3Canada SME employment growth 3.1% 2022, StatsCan
Verified4Germany net job creation by young firms: 15% of total 2021, IAB
Directional5France job reallocation rate: 28% annually 2022, INSEE
Single source6Australia business births added 250,000 jobs 2022, ABS
Verified7Japan firm-level hiring growth avg 1.8% 2022, MHLW
Verified8India MSME employment 120 million, +5% growth 2022, MoMSME
Verified9Brazil formal job creation by micro-firms: 60% of total 2022, Caged
Directional10SK net employment dynamics index 1.5% 2022, Kostat
Single source11Mexico job churn rate 35% 2021, IMSS
Verified12EU job creation by expanding firms: 2.1 million net 2021, Eurostat
Verified13China urban job growth by private sector 12.6 million 2022, NBS
Verified14Italy net job gains from firm entry: 8% 2022, Istat
Directional15Spain employment expansion rate 2.8% in SMEs 2022, SEPE
Single source16NL job reallocation 25% 2022, CBS
Verified17Sweden firm hiring growth 3.5% 2022, SCB
Verified18Poland job creation rate 4.1% 2022, GUS
Verified19OECD employment growth in small firms avg 2.2% 2021
Directional20SG SME employment +4% 2022, MOM
Single source21UAE private sector added 45,000 jobs Q4 2022, MoHRE
Verified22US young firms job share 20% despite 10% firm share 2021, BLS
Verified2345% of US job losses from firm deaths 2021, BED
Verified24UK net job destruction by closures 0.8 million 2020, ONS
Directional25Canada firm downsizing rate 12% 2022, StatsCan
Single source26Germany job destruction rate 7% 2022, IAB
VerifiedEmployment Interpretation
The global economy's job engine is decidedly small and often new, but it sputters dramatically when these fragile firms falter, proving that while startups are a mighty spark, closures are a withering drought.
Formation
1In 2021, the net business formation rate in the United States, calculated as new business applications minus closures per 1,000 firms, stood at 12.4%, the highest since tracking began in 2004
Verified2Between 2019 and 2020, high-propensity business applications in the US surged by 28%, reaching 1.2 million, driven by pandemic-related entrepreneurship
Verified3In Q4 2022, US business applications totaled 1,145,389, with a 7-day moving average peaking at 5,200 daily filings
Verified4The UK saw 1,062,000 new business registrations in 2022, a 5% increase from 2021, led by sole traders in professional services
Directional5In 2023, India registered 192,000 new companies via MCA portal, up 15% YoY, with tech startups comprising 40%
Single source6Germany's business registrations grew 3.2% in 2022 to 2.8 million, with e-commerce firms up 12%
Verified7Australia reported 375,000 new business names in FY2022, a 9% rise, fueled by digital services sector
Verified8Canada had 98,500 new employer enterprises in 2021, up 18% from 2020, per Statistics Canada
Verified9France's INSEE data shows 642,000 new firm creations in 2022, +4.1% YoY, micro-enterprises at 60%
Directional10Japan's incorporations reached 152,000 in FY2022, up 2.5%, with IT sector leading at 25%
Single source11Brazil registered 2.1 million new MEIs in 2022, +8%, per SEBRAE
Verified12South Korea's business startups numbered 1.04 million in 2022, up 6.3%, KED data
Verified13Mexico's new firms hit 1.2 million in 2022, +10%, SAT records show
Verified14In 2022, EU-27 new enterprises totaled 3.2 million, +2.5% YoY, Eurostat
Directional15China's new market entities reached 32.5 million in 2022, up 12%, SAMR data
Single source16In Q1 2023, US employer business starts were 1,057,000, Census BDS preliminary
Verified17Italy's new companies: 52,000 in 2022, +3%, Unioncamere
Verified18Spain registered 95,000 new firms in 2022, +7.5%, INE data
Verified19Netherlands new businesses: 168,000 in 2022, +4%, CBS
Directional20Sweden: 78,000 new firms 2022, +5.2%, SCB
Single source21Poland: 350,000 new businesses 2022, +9%, GUS
Verified22Turkey: 110,000 new companies 2022, +6%, TOBB
Verified23In 2021, US young firm share (≤5 years) was 12% of employer firms, BDS data
Verified24OECD average business entry rate 2021: 11.5% of adult population
Directional25Singapore new biz incorporations: 42,000 in 2022, +15%, ACRA
Single source26UAE free zone setups: 7,500 new in 2022, +20%
Verified27South Africa's new registrations: 250,000 in 2022, +4%, CIPC
Verified28New Zealand: 45,000 new entities FY2022, +8%
Verified29Argentina: 120,000 new monotributistas 2022, +7%, AFIP
Directional30In 2022, US Census tracked 5.4 million new business applications, annual total
Single sourceFormation Interpretation
These figures reveal a global economic plot twist: while headlines warn of stagnation, millions are quietly building the next chapter through a defiant, pandemic-spurred surge of entrepreneurship, proving that the urge to create can outpace even the gravest of disruptions.
Growth
1In 2022, average US firm growth rate for survivors was 2.5% in employment, BLS BED
Verified2UK high-growth firms (20%+ sales growth) share: 7% of all firms 2021, ONS
Verified3Canadian firms expanding employment by 10%+: 15% of SMEs 2022, StatsCan
Verified4Germany gazelles (high-growth young firms) : 1.2% of firms 2021, Destatis
Directional5France firms doubling size in 3 years: 6.5%, INSEE 2022
Single source6Australia fast-growing firms: 8% with 20%+ employment growth 2021-22, ABS
Verified7Japan scaling firms (10x revenue in 10 years): 0.5%, METI 2022
Verified8India unicorns grew from 21 to 100+ since 2018, valuations up 5x, NASSCOM 2023
Verified9Brazil scaleups revenue growth avg 50% YoY 2022, ABStartups
Directional10South Korea gazelle firms: 2.1% of SMEs 2021, KOSDAQ data
Single source11Mexico high-growth SMEs: 4%, INEGI-INEGI 2022
Verified12EU high-growth enterprises: 7.6% share 2020, Eurostat
Verified13China top 1% firms grew employment 15% avg 2022, NBS
Verified14Italy gazelles: 0.8% 2021, ISTAT
Directional15Spain firms with 10%+ growth: 12% 2022, INE
Single source16Netherlands scaleups: 1,200 firms with 20%+ growth 2022, CBS
Verified17Sweden high-growth: 9% of firms 2021, SCB
Verified18Poland dynamic firms: 6.2% 2022, GUS
Verified19OECD high-growth firm rate avg: 8% 2020
Directional20Singapore scaleups grew 25% revenue avg 2022, EnterpriseSG
Single source21UAE firms expansion rate: 18% added jobs 2022, MoE
Verified22US top decile firms employment growth 12% 2021, Kauffman
Verified2335% of US gazelles in tech 2021, SBA
Verified24UK fintech growth 30% YoY 2022, InnovateUK
Directional25Turkey export-oriented firms growth 15% 2022, TOBB
Single source26NZ high-growth 10% employment: 7%, MBIE 2022
Verified27SA scaleups 40% revenue growth avg, Silicon Cape 2023
VerifiedGrowth Interpretation
Despite a global average growth rate that feels modest at best, a small but formidable pack of gazelle firms and scaleups in every economy is dramatically outpacing the herd, proving that while most businesses trot, a few are absolutely sprinting.
Survival
1The 1-year survival rate for new US businesses in 2021 cohort was 78.5%, per BLS
Verified2UK 3-year survival rate for 2019 startups: 42%, ONS data 2022
Verified3In 2021, 80% of Canadian new firms survived year 1, StatsCan
Verified4Germany's 5-year survival rate averages 45% for 2017 cohort, Destatis 2022
Directional5France micro-firms 1-year survival: 75% for 2022 creations, INSEE
Single source6Australia 3-year survival rate: 55.2% for 2019 starters, ABS 2023
Verified7Japan 10-year survival rate: 10% for 2012 cohort, METI 2022
Verified8India startup survival rate year 1: 90% for DPIIT registered, but 70% overall, NASSCOM 2023
Verified9Brazil MEI 2-year survival: 62% for 2020 cohort, SEBRAE 2022
Directional10South Korea 5-year survival: 38% average, KOSTAT 2022
Single source11Mexico formal firms 1-year survival: 72%, INEGI 2022
Verified12EU-27 5-year survival rate: 41.6% for 2016 cohort, Eurostat 2022
Verified13China private firms 3-year survival: 55%, NBS 2022
Verified14Italy 3-year survival: 48% for 2019, ISTAT 2023
Directional15Spain 1-year survival: 76% 2022, INE
Single source16Netherlands 5-year: 50%, CBS 2022
Verified17Sweden 3-year survival: 52%, SCB 2022
Verified18Poland 1-year: 82%, GUS 2022
Verified19OECD median 5-year survival rate across members: 43% for 2017 cohort
Directional20Singapore 3-year survival: 45%, ACRA 2022
Single source21UAE startups 2-year survival: 65%, Dubai SME 2023
Verified2265% of US startups fail within first 10 years, Kauffman 2022
Verified23Year 1 survival for high-tech US firms: 85%, SBA 2021
Verified24In 2020 cohort, US restaurant survival year 1: 70%, Yelp data via BLS
Directional25Turkey 3-year survival: 40%, TURKSTAT 2022
Single source26Argentina SME survival 2-year: 58%
Verified27New Zealand 5-year survival: 47%, StatsNZ 2022
Verified28South Africa 1-year survival: 68%, StatsSA 2022
Verified29Russia new firms 1-year survival: 60%, Rosstat 2022
Directional30US firm age 1-5 years survival rate 2021: 65%, BDS 2022
Single sourceSurvival Interpretation
The data suggests that while optimism fuels the startup engine, the sobering reality of business is a global game of attrition where the odds of a long and prosperous life are about as good as your average lottery ticket, but with far more paperwork.
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