Residential Intellectual and Developmental Disability Facilities — Business Survival Rate

An estimated 61% of residential intellectual and developmental disability facilities businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 9.5%.

61%
5-Year Survival Rate
+2.8%
Net Growth Rate
11,109
Total Firms
601
Annual Firm Deaths

Is Residential Intellectual and Developmental Disability Facilities a Good Business to Start?

With a 61% five-year survival rate, residential intellectual and developmental disability facilities 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 9.5% 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)9.5%
Exit Rate (closures)9.5%

Net positive: more businesses opening than closing (+0.1 pp spread).

Job Creation & Destruction

15.8%
Job Creation Rate
13.0%
Job Destruction Rate
+2.8%
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: 766,908 workers across 11,109 firms.

Want to know how much residential intellectual and developmental disability facilities businesses actually make?

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Frequently Asked Questions

What percentage of residential intellectual and developmental disability facilities businesses fail?
Approximately 39% of residential intellectual and developmental disability facilities businesses fail within their first 5 years. The annual closure rate is 9.5%, with 601 firms closing permanently in 2023.
Is the residential intellectual and developmental disability facilities industry growing or shrinking?
The residential intellectual and developmental disability facilities industry is currently growing with a net job creation rate of +2.8% per year. New businesses are entering at 9.5% while 9.5% close annually.

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