Research and Development in Biotechnology (except Nanobiotechnology) — Business Survival Rate

An estimated 57% of research and development in biotechnology (except nanobiotechnology) businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 10.6%.

57%

5-Year Survival Rate

+4.1%

Net Growth Rate

15,795

Total Firms

1,574

Annual Firm Deaths

Is Research and Development in Biotechnology a Good Business to Start?

With a 57% five-year survival rate, research and development in biotechnology (except nanobiotechnology) 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 10.6% 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.

Entry Rate (new businesses)12.9%

Exit Rate (closures)10.6%

Net positive: more businesses opening than closing (+2.3 pp spread).

Job Creation & Destruction

14.8%

Job Creation Rate

10.6%

Job Destruction Rate

+4.1%

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: 963,978 workers across 15,795 firms.

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Frequently Asked Questions

What percentage of research and development in biotechnology (except nanobiotechnology) businesses fail?: Approximately 43% of research and development in biotechnology (except nanobiotechnology) businesses fail within their first 5 years. The annual closure rate is 10.6%, with 1,574 firms closing permanently in 2023.
Is the research and development in biotechnology (except nanobiotechnology) industry growing or shrinking?: The research and development in biotechnology (except nanobiotechnology) industry is currently growing with a net job creation rate of +4.1% per year. New businesses are entering at 12.9% while 10.6% close annually.

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