How Many Businesses Open and Close Each Year?

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.