Software Publishers — Business Survival Rate
An estimated 50% of software publishers businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 13.0%.
Is Software Publishers a Good Business to Start?
With a 50% five-year survival rate, software publishers 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 13.0% 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.
Net positive: more businesses opening than closing (+2.5 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: 847,635 workers across 11,688 firms.
Want to know how much software publishers businesses actually make?
See full revenue benchmarks for Software Publishers →Frequently Asked Questions
- What percentage of software publishers businesses fail?
- Approximately 50% of software publishers businesses fail within their first 5 years. The annual closure rate is 13.0%, with 1,526 firms closing permanently in 2023.
- Is the software publishers industry growing or shrinking?
- The software publishers industry is currently growing with a net job creation rate of +3.3% per year. New businesses are entering at 15.5% while 13.0% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.