Offices of Physicians (except Mental Health Specialists) — Business Survival Rate

An estimated 67% of offices of physicians (except mental health specialists) businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 7.8%.

67%
5-Year Survival Rate
+6.1%
Net Growth Rate
128,948
Total Firms
10,707
Annual Firm Deaths

Is Offices of Physicians a Good Business to Start?

With a 67% five-year survival rate, offices of physicians (except mental health specialists) 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 7.8% 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.

Entry Rate (new businesses)10.5%
Exit Rate (closures)7.8%

Net positive: more businesses opening than closing (+2.7 pp spread).

Job Creation & Destruction

17.7%
Job Creation Rate
11.6%
Job Destruction Rate
+6.1%
Net Job Growth

The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 2,836,275 workers across 128,948 firms.

Want to know how much offices of physicians (except mental health specialists) businesses actually make?

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Frequently Asked Questions

What percentage of offices of physicians (except mental health specialists) businesses fail?
Approximately 33% of offices of physicians (except mental health specialists) businesses fail within their first 5 years. The annual closure rate is 7.8%, with 10,707 firms closing permanently in 2023.
Is the offices of physicians (except mental health specialists) industry growing or shrinking?
The offices of physicians (except mental health specialists) industry is currently growing with a net job creation rate of +6.1% per year. New businesses are entering at 10.5% while 7.8% close annually.

Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.