Estimates for businesses with employees indicate there were 580,900 new firms and 576,200 closures (both about 10 percent of the total) in 2004.
| Starts and Closures of Employer Firms, 2000-2004 | |||||
| Category | 2000 | 2001 | 2002 | 2003 | 2004 |
| New Firms | 574,300 | 585,140 | 569,750 | 553,500e | 580,900e |
| Firm Closures | 542,831 | 553,291 | 586,890 | 572,300e | 576,200e |
| Bankruptcies | 35,472 | 40,099 | 38,540 | 35,037 | 34,317 |
e = Estimate.
For more information, see Business Estimates from the Office of Advocacy: A Discussion of Methodology (pdf), a working paper by Brian Headd, June 2005 (Research Summary #258).
Sources: U.S. Bureau of the Census; Administrative Office of the U.S. Courts; U.S. Department of Labor, Employment and Training Administration.
Information courtesy of the Small Business Administration, Office of Advocacy.
