Other Financial Vehicles — Business Survival Rate
An estimated 40% of other financial vehicles businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 16.9%.
Is Other Financial Vehicles a Good Business to Start?
With a 40% five-year survival rate, other financial vehicles has a below-average survival rate compared to the national average of ~50%. This indicates higher risk of failure — new entrants face significant competitive pressure or challenging economics.
The annual exit rate of 16.9% is elevated. If you're considering entering this industry, ensure adequate capitalization, a clear competitive advantage, and realistic timeline to profitability.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net positive: more businesses opening than closing (+7.5 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: 10,111 workers across 1,532 firms.
Want to know how much other financial vehicles businesses actually make?
See full revenue benchmarks for Other Financial Vehicles →Frequently Asked Questions
- What percentage of other financial vehicles businesses fail?
- Approximately 60% of other financial vehicles businesses fail within their first 5 years. The annual closure rate is 16.9%, with 242 firms closing permanently in 2023.
- Is the other financial vehicles industry growing or shrinking?
- The other financial vehicles industry is currently growing with a net job creation rate of +7.3% per year. New businesses are entering at 24.4% while 16.9% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.