Amusement Arcades — Business Survival Rate
An estimated 57% of amusement arcades businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 10.7%.
Is Amusement Arcades a Good Business to Start?
With a 57% five-year survival rate, amusement arcades is near the national average (~50%). This means roughly half of new entrants will still be operating after 5 years — typical business risk that rewards solid planning and execution.
The annual exit rate of 10.7% indicates moderate turnover. Success depends on differentiation, location, and operational efficiency rather than inherent industry advantages.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net positive: more businesses opening than closing (+4.7 pp spread).
Job Creation & Destruction
The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 199,707 workers across 3,018 firms.
Want to know how much amusement arcades businesses actually make?
See full revenue benchmarks for Amusement Arcades →Frequently Asked Questions
- What percentage of amusement arcades businesses fail?
- Approximately 43% of amusement arcades businesses fail within their first 5 years. The annual closure rate is 10.7%, with 336 firms closing permanently in 2023.
- Is the amusement arcades industry growing or shrinking?
- The amusement arcades industry is currently stable with a net job creation rate of +0.2% per year. New businesses are entering at 15.4% while 10.7% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.