Cosmetology and Barber Schools — Business Survival Rate
An estimated 59% of cosmetology and barber schools businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 10.1%.
Is Cosmetology and Barber Schools a Good Business to Start?
With a 59% five-year survival rate, cosmetology and barber schools 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 10.1% 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 (+2.5 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: 114,376 workers across 6,785 firms.
Want to know how much cosmetology and barber schools businesses actually make?
See full revenue benchmarks for Cosmetology and Barber Schools →Frequently Asked Questions
- What percentage of cosmetology and barber schools businesses fail?
- Approximately 41% of cosmetology and barber schools businesses fail within their first 5 years. The annual closure rate is 10.1%, with 561 firms closing permanently in 2023.
- Is the cosmetology and barber schools industry growing or shrinking?
- The cosmetology and barber schools industry is currently growing with a net job creation rate of +3.0% per year. New businesses are entering at 12.6% while 10.1% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.