Motor Vehicle Towing — Business Survival Rate
An estimated 54% of motor vehicle towing businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 11.4%.
Is Motor Vehicle Towing a Good Business to Start?
With a 54% five-year survival rate, motor vehicle towing 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 (+1.4 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: 126,966 workers across 11,134 firms.
Want to know how much motor vehicle towing businesses actually make?
See full revenue benchmarks for Motor Vehicle Towing →Frequently Asked Questions
- What percentage of motor vehicle towing businesses fail?
- Approximately 46% of motor vehicle towing businesses fail within their first 5 years. The annual closure rate is 11.4%, with 1,319 firms closing permanently in 2023.
- Is the motor vehicle towing industry growing or shrinking?
- The motor vehicle towing industry is currently growing with a net job creation rate of +2.3% per year. New businesses are entering at 12.9% while 11.4% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.