The 15 Industries With the Highest Business Failure Rate in 2023
Every year, hundreds of thousands of businesses close their doors. But some industries are far riskier than others. Using the Census Bureau's Business Dynamics Statistics (2023), we ranked industries by their establishment exit rate — the percentage of businesses that close each year.
Top 15 Industries by Closure Rate
- 1. Couriers and Express Delivery Services: 20.05% close per year (646 closures)
- 2. General Freight Trucking, Long-Distance, Truckload: 19.34% close per year (16,550 closures)
- 3. General Freight Trucking, Local: 19.34% close per year (16,550 closures)
- 4. General Freight Trucking, Long-Distance, Less Than Truckload: 19.34% close per year (16,550 closures)
- 5. Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers: 18.96% close per year (1,627 closures)
- 6. Computer and Computer Peripheral Equipment and Software Merchant Wholesalers: 18.96% close per year (1,627 closures)
- 7. Other Commercial Equipment Merchant Wholesalers: 18.96% close per year (1,627 closures)
- 8. Mortgage and Nonmortgage Loan Brokers: 16.86% close per year (2,168 closures)
- 9. Financial Transactions Processing, Reserve, and Clearinghouse Activities: 16.86% close per year (2,168 closures)
- 10. Other Activities Related to Credit Intermediation: 16.86% close per year (2,168 closures)
- 11. Cut and Sew Apparel Contractors: 16.77% close per year (544 closures)
- 12. Independent Artists, Writers, and Performers: 16.73% close per year (3,172 closures)
- 13. Electronic Shopping and Mail-Order Houses: 15.94% close per year (6,606 closures)
- 14. Limousine Service: 15.65% close per year (843 closures)
- 15. Taxi Service: 15.65% close per year (843 closures)
What This Means for Entrepreneurs
The average business closure rate across all industries is about 9%. If you're entering an industry above that threshold, you'll need a stronger competitive advantage and more financial runway to survive. Industries with high closure rates often have low barriers to entry — easy to start, but hard to sustain.