2025-01-15

The 15 Industries With the Highest Business Failure Rate in 2023

Which businesses are most likely to close? We analyzed Census Bureau data on 608 industries to find the ones with the highest closure rates.

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 Services20.05% close per year (646 closures)

2. General Freight Trucking, Long-Distance, Truckload19.34% close per year (16,550 closures)

3. General Freight Trucking, Local19.34% close per year (16,550 closures)

4. General Freight Trucking, Long-Distance, Less Than Truckload19.34% close per year (16,550 closures)

5. Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers18.96% close per year (1,627 closures)

6. Computer and Computer Peripheral Equipment and Software Merchant Wholesalers18.96% close per year (1,627 closures)

7. Other Commercial Equipment Merchant Wholesalers18.96% close per year (1,627 closures)

8. Mortgage and Nonmortgage Loan Brokers16.86% close per year (2,168 closures)

9. Financial Transactions Processing, Reserve, and Clearinghouse Activities16.86% close per year (2,168 closures)

10. Other Activities Related to Credit Intermediation16.86% close per year (2,168 closures)

11. Cut and Sew Apparel Contractors16.77% close per year (544 closures)

12. Independent Artists, Writers, and Performers16.73% close per year (3,172 closures)

13. Electronic Shopping and Mail-Order Houses15.94% close per year (6,606 closures)

14. Limousine Service15.65% close per year (843 closures)

15. Taxi Service15.65% 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.

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.

Top 15 Industries by Closure Rate

What This Means for Entrepreneurs

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