Other Electronic Component Manufacturing — Business Survival Rate

An estimated 73% of other electronic component manufacturing businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 6.0%.

73%
5-Year Survival Rate
+4.0%
Net Growth Rate
2,952
Total Firms
168
Annual Firm Deaths

Is Other Electronic Component Manufacturing a Good Business to Start?

With a 73% five-year survival rate, other electronic component manufacturing 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 6.0% 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)5.3%
Exit Rate (closures)6.0%

Net negative: more businesses closing than opening (-0.7 pp spread).

Job Creation & Destruction

9.9%
Job Creation Rate
6.0%
Job Destruction Rate
+4.0%
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: 281,943 workers across 2,952 firms.

Want to know how much other electronic component manufacturing businesses actually make?

See full revenue benchmarks for Other Electronic Component Manufacturing →

Frequently Asked Questions

What percentage of other electronic component manufacturing businesses fail?
Approximately 27% of other electronic component manufacturing businesses fail within their first 5 years. The annual closure rate is 6.0%, with 168 firms closing permanently in 2023.
Is the other electronic component manufacturing industry growing or shrinking?
The other electronic component manufacturing industry is currently growing with a net job creation rate of +4.0% per year. New businesses are entering at 5.3% while 6.0% close annually.

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