Sporting and Athletic Goods Manufacturing — Business Survival Rate

An estimated 64% of sporting and athletic goods manufacturing businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 8.5%.

64%
5-Year Survival Rate
+2.3%
Net Growth Rate
13,107
Total Firms
1,017
Annual Firm Deaths

Is Sporting and Athletic Goods Manufacturing a Good Business to Start?

With a 64% five-year survival rate, sporting and athletic goods manufacturing 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 8.5% 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)8.5%
Exit Rate (closures)8.5%

Net positive: more businesses opening than closing (+0.0 pp spread).

Job Creation & Destruction

12.4%
Job Creation Rate
10.1%
Job Destruction Rate
+2.3%
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: 257,945 workers across 13,107 firms.

Want to know how much sporting and athletic goods manufacturing businesses actually make?

See full revenue benchmarks for Sporting and Athletic Goods Manufacturing →

Frequently Asked Questions

What percentage of sporting and athletic goods manufacturing businesses fail?
Approximately 36% of sporting and athletic goods manufacturing businesses fail within their first 5 years. The annual closure rate is 8.5%, with 1,017 firms closing permanently in 2023.
Is the sporting and athletic goods manufacturing industry growing or shrinking?
The sporting and athletic goods manufacturing industry is currently growing with a net job creation rate of +2.3% per year. New businesses are entering at 8.5% while 8.5% close annually.

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