2025-04-01
The Businesses Most Likely to Survive: Lowest Failure Rates
Not all businesses are risky. These industries have closure rates under 4.74% — meaning businesses here tend to stick around.
While the average business has about a 9% annual closure rate, some industries are remarkably stable. These tend to be essential services with recurring revenue, high switching costs, or significant regulatory barriers to entry.
Lowest Failure Rate Industries
1. All Other General Merchandise StoresOnly 2.06% close per year
2. General Medical and Surgical HospitalsOnly 2.39% close per year
3. Elementary and Secondary SchoolsOnly 3.3% close per year
4. Other Building Material DealersOnly 4.43% close per year
5. Hardware StoresOnly 4.43% close per year
6. Automotive Parts and Accessories StoresOnly 4.45% close per year
7. Tire DealersOnly 4.45% close per year
8. Hardware Merchant WholesalersOnly 4.64% close per year
9. Plumbing and Heating Equipment and Supplies (Hydronics) Merchant WholesalersOnly 4.64% close per year
10. Warm Air Heating and Air-Conditioning Equipment and Supplies Merchant WholesalersOnly 4.64% close per year
11. Community Food ServicesOnly 4.74% close per year
12. Other Community Housing ServicesOnly 4.74% close per year
Data sources: U.S. Census Bureau Statistics of U.S. Businesses (2021), Census Business Dynamics Statistics (2023), Bureau of Labor Statistics QCEW (2023), IRS Statistics of Income. Revenue figures are estimated from payroll data using industry-specific ratios.