Security Systems Services (except Locksmiths) — Business Survival Rate

An estimated 63% of security systems services (except locksmiths) businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 8.9%.

63%
5-Year Survival Rate
+4.5%
Net Growth Rate
19,038
Total Firms
1,757
Annual Firm Deaths

Is Security Systems a Good Business to Start?

With a 63% five-year survival rate, security systems services (except locksmiths) 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 8.9% 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)10.7%
Exit Rate (closures)8.9%

Net positive: more businesses opening than closing (+1.8 pp spread).

Job Creation & Destruction

12.5%
Job Creation Rate
7.9%
Job Destruction Rate
+4.5%
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: 1,011,277 workers across 19,038 firms.

Want to know how much security systems services (except locksmiths) businesses actually make?

See full revenue benchmarks for Security Systems Services (except Locksmiths) →

Frequently Asked Questions

What percentage of security systems services (except locksmiths) businesses fail?
Approximately 37% of security systems services (except locksmiths) businesses fail within their first 5 years. The annual closure rate is 8.9%, with 1,757 firms closing permanently in 2023.
Is the security systems services (except locksmiths) industry growing or shrinking?
The security systems services (except locksmiths) industry is currently growing with a net job creation rate of +4.5% per year. New businesses are entering at 10.7% while 8.9% close annually.

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