School and Employee Bus Transportation — Business Survival Rate
An estimated 75% of school and employee bus transportation businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 5.6%.
Is School and Employee Bus Transportation a Good Business to Start?
With a 75% five-year survival rate, school and employee bus transportation 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 5.6% 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.
Net positive: more businesses opening than closing (+0.2 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: 218,879 workers across 2,220 firms.
Want to know how much school and employee bus transportation businesses actually make?
See full revenue benchmarks for School and Employee Bus Transportation →Frequently Asked Questions
- What percentage of school and employee bus transportation businesses fail?
- Approximately 25% of school and employee bus transportation businesses fail within their first 5 years. The annual closure rate is 5.6%, with 167 firms closing permanently in 2023.
- Is the school and employee bus transportation industry growing or shrinking?
- The school and employee bus transportation industry is currently growing with a net job creation rate of +5.3% per year. New businesses are entering at 5.8% while 5.6% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.