Four of five startups survive the first year after being established
On average, four of five newly established startups are still active one year after being established. The survival rates vary heavily depending on the industry. While companies from the healthcare and social services sector have the highest chances of survival, culinary establishments have it the most difficult. Moreover, the size of a newly established company plays a large role. This is demonstrated by the Statistics on Business Demographics (UDEMO) of the Federal Office for Statistics (BFS).
Survival rates vary widely depending on the industry
On average, 83% of all newly established startups are still active one year later. However, the survival rate decreases in the subsequent years. Thus, only three of five newly established companies are still active after three years. The survival rates, however, appear very differently depending on the industry. Businesses in the healthcare and social services sectors have the highest survival rates. On average here, 87.1% are still active after one year, 77.4% are still active after two years, and 72.3% are still active after three years. This is followed by the “transportation and storage” industry as well as the construction industry. The lowest survival rates are found in the hospitality industry. On average there, only 76.6% of all newly established businesses are still active after the first year. In the second year, the rate drops to 57.6% and in the third year, with 49.6%, not even half of culinary businesses survive.
Larger companies with more than one employed person have a clear benefit
While companies with more than one employed person all have survival rates of more than 90% after the first year, this rate is only 82.5% in companies with just one employed person. These one-person companies are also those that by make up the largest portion of company closures. Of 34,052 company closures in 2014, 83.8% were companies with just one employed person.
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Source: Statistics on Business Demographics (UDEMO), Federal Office for Statistics (BFS)
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