fbpx

Wed. Feb 28th, 2024

 

LendingTree Study Shows Missouri #2 In The Nation For Highest Rate Of Business Failures

A new study from LendingTree.com isn’t looking good for those wanting to start a business in the Show Me State.

According to data from the U.S. Bureau of Labor Statistics, Missouri’s business survival rate is Number 2 among states with the highest rate of business failures.

In fact, the study shows that 27.2% of Missouri’s businesses fail within their first year of operation, compared to the national average of 20.8%.

Nationally after five years, 48.4% have faltered and after 10 years, 65.1% of businesses have failed.

The District of Columbia sees the highest business failure, followed by Missouri and Rhode Island.

California saw the lowest business failure rate within the first year, followed by Washington and Nevada.

 

Here’s the full report….

Using new data from the U.S. Bureau of Labor Statistics, LendingTree’s annual business survival rate report shows that Missouri ranks No. 2 among states with the highest rate of business failures. In fact, 27.2% of Missouri’s businesses fail within their first year of operation, compared to the national average of 20.8%. 
 
LendingTree’s researchers also looked at the five- and 10-year business failure rates in Missouri:
 
First-year Failure Rate

Rank, 1-year Failure Rate

Five-year Failure Rate

Rank, 5-year Failure Rate

Ten-year Failure Rate

Rank, 10-year Failure Rate

Missouri
27.2%
2
60.5%
1
68.7%
7
 
Other key takeaways
  • 20.8% of private sector businesses in the U.S. fail within the first year. After five years, 48.4% have faltered. After 10 years, 65.1% of businesses have failed.

  • The District of Columbia sees the highest business failure rate within the first year. In the nation’s capital, 28.0% of businesses fail in that first year, followed by Missouri and Rhode Island (both 27.2%).

  • California sees the lowest business failure rate within the first year. In the Golden State, 13.2% of businesses fail in that first year, followed by Washington (16.7%) and Nevada (18.5%). However, even though Washington has the second-lowest failure rate within the first year, it has the highest failure rate after 10 years (78.5%).

Reporter John Rogger