Emma Davis, 4OVER4 print production voice (illustration)
Emma Davis Print Production Specialist at 4OVER4.COM

Emma is our prepress and print production voice, built from the knowledge of our production team, with over 20 years in printing.

Question

What percentage of small businesses fail within the first year?

Answer

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.

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