Fundamentals of Management, 8th ed

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Part 2: Planning

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Better Survival Rates

Finally, more people are encouraged to test their skills as entre-

preneurs because the failure rate among small businesses has been declining in recent

years. As of 2008, seven out of ten new businesses survived at least two years, whereas

about 49 percent survived five years; 34 percent of businesses survived at least ten years,

and 26 percent lasted 15 years or longer. For reasons discussed in the next section, small

businesses suffer a higher mortality rate than larger concerns. Among those that manage to

stay in business for six to ten years, however, the survival rate levels off.