Exam Preparation and Tutoring — Business Survival Rate
An estimated 62% of exam preparation and tutoring businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 9.1%.
Is Exam Preparation and Tutoring a Good Business to Start?
With a 62% five-year survival rate, exam preparation and tutoring 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 9.1% 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.
Net positive: more businesses opening than closing (+3.4 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: 516,322 workers across 48,361 firms.
Want to know how much exam preparation and tutoring businesses actually make?
See full revenue benchmarks for Exam Preparation and Tutoring →Frequently Asked Questions
- What percentage of exam preparation and tutoring businesses fail?
- Approximately 38% of exam preparation and tutoring businesses fail within their first 5 years. The annual closure rate is 9.1%, with 3,945 firms closing permanently in 2023.
- Is the exam preparation and tutoring industry growing or shrinking?
- The exam preparation and tutoring industry is currently growing with a net job creation rate of +9.2% per year. New businesses are entering at 12.5% while 9.1% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.