What percentage of small businesses fail within the first year?

About 20 percent of new businesses close within their first year, according to the U.S. Bureau of Labor Statistics, a rate that has stayed fairly steady across three decades. That means roughly 80 percent survive year one, a far better outlook than the familiar "90 percent fail" myth suggests.

• Year one: around 20 percent close, per BLS data.
• Most common cause: running out of cash before reaching profitability, so adequate reserves and early revenue reduce the risk.
• Years two to five: the failure rate climbs as early funding runs out and competition intensifies.
• Long term: odds improve for businesses that build brand recognition and repeatable customer acquisition early.

Investing early in branding and a steady way to reach customers, including professional print materials, measurably improves your odds of making it past those first fragile years.