Interior Design Services — Business Survival Rate
An estimated 52% of interior design services businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 12.3%.
Is Interior Design a Good Business to Start?
With a 52% five-year survival rate, interior design 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 12.3% 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: 127,201 workers across 30,758 firms.
Want to know how much interior design services businesses actually make?
See full revenue benchmarks for Interior Design Services →Frequently Asked Questions
- What percentage of interior design services businesses fail?
- Approximately 48% of interior design services businesses fail within their first 5 years. The annual closure rate is 12.3%, with 3,132 firms closing permanently in 2023.
- Is the interior design services industry growing or shrinking?
- The interior design services industry is currently stable with a net job creation rate of +0.8% per year. New businesses are entering at 14.8% while 12.3% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.