Educational Support Services — Business Survival Rate
An estimated 55% of educational support services businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 11.4%.
Is Educational Support a Good Business to Start?
With a 55% five-year survival rate, educational support services 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 11.4% 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 (+6.0 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: 145,365 workers across 9,042 firms.
Want to know how much educational support services businesses actually make?
See full revenue benchmarks for Educational Support Services →Frequently Asked Questions
- What percentage of educational support services businesses fail?
- Approximately 45% of educational support services businesses fail within their first 5 years. The annual closure rate is 11.4%, with 935 firms closing permanently in 2023.
- Is the educational support services industry growing or shrinking?
- The educational support services industry is currently growing with a net job creation rate of +12.6% per year. New businesses are entering at 17.4% while 11.4% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.