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Question

What percentage of startups fail within the first five years?

Answer

About 50% of startups close within their first five years, based on U.S. Bureau of Labor Statistics survival data. The odds shift a lot depending on your industry, and the steepest drop happens early rather than late.

Time in business	Approximate survival rate
Year 1	~80%
Year 2	~70%
Year 5	~50%
Year 10	~35%

Industry swings the odds: restaurants close far faster than healthcare or professional services.
Top reasons founders cite: cash flow problems and lack of market demand.
Early years are riskiest: businesses that reach year three have meaningfully better long-term odds.

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What percentage of startups fail within the first five years?

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