Funeral Homes and Funeral Services — Business Survival Rate
An estimated 76% of funeral homes and funeral services businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 5.3%.
Is Funeral Homes and Funeral a Good Business to Start?
With a 76% five-year survival rate, funeral homes and funeral services 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 5.3% 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 negative: more businesses closing than opening (-1.1 pp spread).
Job Creation & Destruction
The industry is losing jobs faster than creating them — which may indicate automation, consolidation, or declining demand. Total employment: 140,833 workers across 13,145 firms.
Want to know how much funeral homes and funeral services businesses actually make?
See full revenue benchmarks for Funeral Homes and Funeral Services →Frequently Asked Questions
- What percentage of funeral homes and funeral services businesses fail?
- Approximately 24% of funeral homes and funeral services businesses fail within their first 5 years. The annual closure rate is 5.3%, with 678 firms closing permanently in 2023.
- Is the funeral homes and funeral services industry growing or shrinking?
- The funeral homes and funeral services industry is currently stable with a net job creation rate of -1.7% per year. New businesses are entering at 4.2% while 5.3% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.