Sports and Recreation Instruction — Business Survival Rate
An estimated 62% of sports and recreation instruction businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 9.1%.
Is Sports and Recreation Instruction a Good Business to Start?
With a 62% five-year survival rate, sports and recreation instruction 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 9.1% 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 (+3.4 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: 516,322 workers across 48,361 firms.
Want to know how much sports and recreation instruction businesses actually make?
See full revenue benchmarks for Sports and Recreation Instruction →Frequently Asked Questions
- What percentage of sports and recreation instruction businesses fail?
- Approximately 38% of sports and recreation instruction businesses fail within their first 5 years. The annual closure rate is 9.1%, with 3,945 firms closing permanently in 2023.
- Is the sports and recreation instruction industry growing or shrinking?
- The sports and recreation instruction industry is currently growing with a net job creation rate of +9.2% per year. New businesses are entering at 12.5% while 9.1% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.