Telephone Answering Services — Business Survival Rate
An estimated 49% of telephone answering services businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 13.1%.
Is Telephone Answering a Good Business to Start?
With a 49% five-year survival rate, telephone answering services 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 13.1% 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 negative: more businesses closing than opening (-4.3 pp spread).
Job Creation & Destruction
The industry is losing jobs faster than creating them — which may indicate automation, consolidation, or declining demand. Total employment: 704,586 workers across 19,450 firms.
Want to know how much telephone answering services businesses actually make?
See full revenue benchmarks for Telephone Answering Services →Frequently Asked Questions
- What percentage of telephone answering services businesses fail?
- Approximately 51% of telephone answering services businesses fail within their first 5 years. The annual closure rate is 13.1%, with 2,058 firms closing permanently in 2023.
- Is the telephone answering services industry growing or shrinking?
- The telephone answering services industry is currently shrinking with a net job creation rate of -7.8% per year. New businesses are entering at 8.8% while 13.1% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.