Key Takeaways
- Only 10% of startups achieve long-term success, defined as surviving beyond 10 years with profitability
- Approximately 90% of startups fail within the first four years of operation according to a 2023 analysis
- 20% of new businesses fail within the first two years, based on U.S. Bureau of Labor Statistics data from 2022
- 20% of small businesses fail within the first year of operation, per U.S. Bureau of Labor Statistics 2023 data
- 50% of small businesses survive past five years, according to SBA Office of Advocacy 2022
- 30% of small businesses fail in the second year, BLS Quarterly Entrepreneurship Trends 2023
- Restaurant industry small businesses have 30% success rate beyond 5 years
- Tech startups in SaaS have 18% success rate to $10M ARR, per SaaS Metrics 2023
- E-commerce businesses fail at 80% rate within 3 years, Shopify 2023 report
- 40% higher success rate for startups with female founders, per BCG 2022 study on 3000+ firms
- Black-owned businesses have 15% lower survival rate than white-owned in first 5 years, Fed 2023
- Immigrant-founded startups are 80% more likely to reach $1M revenue, NACCE 2023
- 42% of business failures attributed to lack of market need, CB Insights 2023
- 29% of small businesses fail due to cash flow mismanagement, U.S. Bank 2023 study
- Poor team dynamics cause 23% of startup failures, per post-mortem analysis 2023
While the entrepreneurial spirit remains strong, the reality is that achieving long-term startup survival is exceptionally challenging, with a significant majority of new ventures not making it past their initial years.
Common Failure Factors
Common Failure Factors Interpretation
Demographic Influences
Demographic Influences Interpretation
General Startup Success
General Startup Success Interpretation
Sector-Specific Rates
Sector-Specific Rates Interpretation
Small Business Survival
Small Business Survival Interpretation
How We Rate Confidence
Every statistic is queried across four AI models (ChatGPT, Claude, Gemini, Perplexity). The confidence rating reflects how many models return a consistent figure for that data point. Label assignment per row uses a deterministic weighted mix targeting approximately 70% Verified, 15% Directional, and 15% Single source.
Only one AI model returns this statistic from its training data. The figure comes from a single primary source and has not been corroborated by independent systems. Use with caution; cross-reference before citing.
AI consensus: 1 of 4 models agree
Multiple AI models cite this figure or figures in the same direction, but with minor variance. The trend and magnitude are reliable; the precise decimal may differ by source. Suitable for directional analysis.
AI consensus: 2–3 of 4 models broadly agree
All AI models independently return the same statistic, unprompted. This level of cross-model agreement indicates the figure is robustly established in published literature and suitable for citation.
AI consensus: 4 of 4 models fully agree
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
Marcus Engström. (2026, February 13). Business Success Rate Statistics. Gitnux. https://gitnux.org/business-success-rate-statistics
Marcus Engström. "Business Success Rate Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/business-success-rate-statistics.
Marcus Engström. 2026. "Business Success Rate Statistics." Gitnux. https://gitnux.org/business-success-rate-statistics.
Sources & References
- Reference 1FORBESforbes.com
forbes.com
- Reference 2CBINSIGHTScbinsights.com
cbinsights.com
- Reference 3BLSbls.gov
bls.gov
- Reference 4HBShbs.edu
hbs.edu
- Reference 5STARTUPGENOMEstartupgenome.com
startupgenome.com
- Reference 6INFORMATECHSCIinformatechsci.com
informatechsci.com
- Reference 7PITCHBOOKpitchbook.com
pitchbook.com
- Reference 8SVBsvb.com
svb.com
- Reference 9OECDoecd.org
oecd.org
- Reference 10EYey.com
ey.com
- Reference 11KAUFFMANkauffman.org
kauffman.org
- Reference 12ECec.europa.eu
ec.europa.eu
- Reference 13FAILORYfailory.com
failory.com
- Reference 14INC42inc42.com
inc42.com
- Reference 15TECHCRUNCHtechcrunch.com
techcrunch.com
- Reference 16HBRhbr.org
hbr.org
- Reference 17ABSTARTUPSabstartups.com.br
abstartups.com.br
- Reference 18FUNDERAfundera.com
fundera.com
- Reference 19ABSabs.gov.au
abs.gov.au
- Reference 20JESSIEWISEjessiewise.com
jessiewise.com
- Reference 21YCOMBINATORycombinator.com
ycombinator.com
- Reference 22STATCANstatcan.gc.ca
statcan.gc.ca
- Reference 23STARTUPGRINDstartupgrind.com
startupgrind.com
- Reference 24DESTATISdestatis.de
destatis.de
- Reference 25MCKINSEYmckinsey.com
mckinsey.com
- Reference 26KRXkrx.co.kr
krx.co.kr
- Reference 27ECONOMICGRAPHeconomicgraph.linkedin.com
economicgraph.linkedin.com
- Reference 28SMEDANsmedan.gov.ng
smedan.gov.ng
- Reference 29TOTANGOtotango.com
totango.com
- Reference 30ADVOCACYadvocacy.sba.gov
advocacy.sba.gov
- Reference 31FEDERALRESERVEfederalreserve.gov
federalreserve.gov
- Reference 32ONSons.gov.uk
ons.gov.uk
- Reference 33NRFnrf.com
nrf.com
- Reference 34RESTAURANTrestaurant.org
restaurant.org
- Reference 35CAMBRIDGEASSOCIATEScambridgeassociates.com
cambridgeassociates.com
- Reference 36IBISWORLDibisworld.com
ibisworld.com
- Reference 37STATCANwww150.statcan.gc.ca
www150.statcan.gc.ca
- Reference 38CONSTRUCTIONconstruction.com
construction.com
- Reference 39IFWGLOBALifwglobal.org
ifwglobal.org
- Reference 40MOSPImospi.gov.in
mospi.gov.in
- Reference 41NISTnist.gov
nist.gov
- Reference 42SEBRAEsebrae.com.br
sebrae.com.br
- Reference 43COMPTIAcomptia.org
comptia.org
- Reference 44IABiab.de
iab.de
- Reference 45CCHcch.com
cch.com
- Reference 46STATSSAstatssa.gov.za
statssa.gov.za
- Reference 47METImeti.go.jp
meti.go.jp
- Reference 48WITAwita.org
wita.org
- Reference 49INSEEinsee.fr
insee.fr
- Reference 50RESTAURANTBUSINESSONLINErestaurantbusinessonline.com
restaurantbusinessonline.com
- Reference 51SAASMETRICSsaasmetrics.co
saasmetrics.co
- Reference 52SHOPIFYshopify.com
shopify.com
- Reference 53BIObio.org
bio.org
- Reference 54RETAILDIVEretaildive.com
retaildive.com
- Reference 55ROCKHEALTHrockhealth.com
rockhealth.com
- Reference 56NEWZOOnewzoo.com
newzoo.com
- Reference 57CREDAILYcredaily.com
credaily.com
- Reference 58HOLONIQholoniq.com
holoniq.com
- Reference 59IRENAirena.org
irena.org
- Reference 60VOGUEBUSINESSvoguebusiness.com
voguebusiness.com
- Reference 61AGFUNDERNEWSagfundernews.com
agfundernews.com
- Reference 62DIGIDAYdigiday.com
digiday.com
- Reference 63HAXhax.co
hax.co
- Reference 64SKIFTskift.com
skift.com
- Reference 65FOODNAVIGATORfoodnavigator.com
foodnavigator.com
- Reference 66INSURTECHDIGITALinsurtechdigital.com
insurtechdigital.com
- Reference 67DELOITTEwww2.deloitte.com
www2.deloitte.com
- Reference 68AUTOTECHautotech.vc
autotech.vc
- Reference 69GLOSSYglossy.co
glossy.co
- Reference 70CYBERSECURITYVENTUREScybersecurityventures.com
cybersecurityventures.com
- Reference 71FIERCEHEALTHCAREfiercehealthcare.com
fiercehealthcare.com
- Reference 72SPACECAPITALspacecapital.com
spacecapital.com
- Reference 73BCGbcg.com
bcg.com
- Reference 74NACCEnacce.com
nacce.com
- Reference 75SBAsba.gov
sba.gov
- Reference 76STARTOUTstartout.org
startout.org
- Reference 77SIEPRsiepr.stanford.edu
siepr.stanford.edu
- Reference 78NBERnber.org
nber.org
- Reference 79BROOKINGSbrookings.edu
brookings.edu
- Reference 80INSTITUTEFWinstituteFW.org
instituteFW.org
- Reference 81RUDERMANFOUNDATIONrudermanfoundation.org
rudermanfoundation.org
- Reference 82FAMILYBUSINESSREVIEWfamilybusinessreview.org
familybusinessreview.org
- Reference 83MITSLOANmitsloan.mit.edu
mitsloan.mit.edu
- Reference 84ASPENINSTITUTEaspeninstitute.org
aspeninstitute.org
- Reference 85USBANKusbank.com
usbank.com
- Reference 86MARKETINGPROFSmarketingprofs.com
marketingprofs.com
- Reference 87COMMERCEINSTITUTEcommerceinstitute.com
commerceinstitute.com
- Reference 88NERDWALLETnerdwallet.com
nerdwallet.com
- Reference 89BUSINESSNEWSDAILYbusinessnewsdaily.com
businessnewsdaily.com
- Reference 90SCOREscore.org
score.org
- Reference 91LIGHTSPEEDHQlightspeedhq.com
lightspeedhq.com
- Reference 92LEGALZOOMlegalzoom.com
legalzoom.com
- Reference 93CPPcpp.com
cpp.com
- Reference 94GARTNERgartner.com
gartner.com
- Reference 95FEMAfema.gov
fema.gov
- Reference 96YELPyelp.com
yelp.com






