Corporate, Subsidiary, and Regional Managing Offices — Business Survival Rate

An estimated 61% of corporate, subsidiary, and regional managing offices businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 9.5%.

61%
5-Year Survival Rate
+3.1%
Net Growth Rate
24,211
Total Firms
801
Annual Firm Deaths

Is Corporate, Subsidiary, and Regional Managing Offices a Good Business to Start?

With a 61% five-year survival rate, corporate, subsidiary, and regional managing offices has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.

The annual exit rate of 9.5% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.

Entry vs. Exit Rates

Annual rate of new businesses opening versus existing businesses closing.

Entry Rate (new businesses)5.8%
Exit Rate (closures)9.5%

Net negative: more businesses closing than opening (-3.7 pp spread).

Job Creation & Destruction

14.2%
Job Creation Rate
11.1%
Job Destruction Rate
+3.1%
Net Job Growth

The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 3,775,803 workers across 24,211 firms.

Want to know how much corporate, subsidiary, and regional managing offices businesses actually make?

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Frequently Asked Questions

What percentage of corporate, subsidiary, and regional managing offices businesses fail?
Approximately 39% of corporate, subsidiary, and regional managing offices businesses fail within their first 5 years. The annual closure rate is 9.5%, with 801 firms closing permanently in 2023.
Is the corporate, subsidiary, and regional managing offices industry growing or shrinking?
The corporate, subsidiary, and regional managing offices industry is currently growing with a net job creation rate of +3.1% per year. New businesses are entering at 5.8% while 9.5% close annually.

Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.