Here’s The First-Year Business Success Rates In Ohio

Opening a new business is a daunting task for any entrepreneur, with half of all businesses shutting down by their five year mark, any advantage possible needs to be taken to ensure the longevity of a perspective business.

One possible advantage is which state across the U.S. the new business was founded in. Nulab, a results driven software company that amplifies workplace productivity, used data from the U.S. Bureau of Labor Statistics’ Establishment Age and Survival report to find the success rates of new businesses in different states.

Our state ranked 21st in first year business survival rate from 2016 to 2018, just ahead of Montana, and just behind Texas. Massachusetts ranked highest in the nation with an 82.4% business-survival rate in the first year, whereas North Dakota had the lowest percentage of survival rate in the time frame at 75.6%.

Interestingly enough though, North Dakota had the highest business survival rate over a 10 year span in the country at 42.6%, with Florida having the nations lowest at 26.4%.

Here are the states with the highest business survival rates in the country after year one:

1. Massachusetts: 82.4 percent
2. California: 81.3 percent
3. Michigan: 81.1 percent
4. South Dakota: 80.9 percent
5. Iowa: 80.6 percent
6. Minnesota: 80.4 percent
7. Indiana: 80.3 percent
8. Pennsylvania: 80.2 percent
9. Alabama: 80.1 percent
10. Louisiana: 80.0 percent

New businesses had the greatest chance of failing in the first year in the following 10 states.

41. Delaware: 77.7 percent
42. Nebraska: 77.7 percent
43. Arizona: 77.4 percent
44. Nevada: 77.4 percent
45. Alaska: 76.9 percent
46. New Hampshire: 76.5 percent
47. Kansas: 76.3 percent
48. Georgia: 76.0 percent
49. Rhode Island: 75.9 percent
50. North Dakota: 75.6 percent

“Location may play a major role in determining a business’s success, but factors like talent, work ethic, sales, and even local laws and regulations can turn a good business idea into a closed shop,” said Nulab.