Survival of newly born enterprises

The survival rates of a cohort of newly born enterprises are of course declining from one year to the other: One year after its creation, at least one enterprise out of ten newly born in 2004 was no longer active on the market. The two-year survival rate (from 2004 to 2006) was 81.4%. One year later still 73.8% of the enterprises were active and four years later, around two thirds (69.4%) of this cohort survived. The five-year-survival rate amounted to 64.5%, after six years still 59.9 percent were active and after seven years 55.8%. Eight years after the birth 51.8% of the enterprises born 2004 were still active. It seems that the first years of an enterprise’s life are the most difficult ones; the percentage of resigning enterprises is relatively high. From the third year on, the number of enterprises that leave the market decreases.

The highest eight-year-survival rates were registered in the economic branches of "Human Health and Social work activities" (71.7%), "Electricity, gas, steam and air conditioning supply" (64.6%) and "Manufacturing" (61.4%).

Analysis of the survival rates by employee size classes reveals that the survival rate tends to increase as the number of employees rises. For example, the average survival rate after eight years for enterprises with no employees was 48.6%. For enterprises with 1 to 4 employees this survival rate was 55.3%. For enterprises with 5 to 9 employees the survival rate was 63.2% and for enterprises with 10 or more employees survived with 62.9%.

Above average are the eight-year-survival rates in the provinces Tyrol (55.6%), Salzburg (54.5%) and Upper Austria (52.9%). The lowest eight-year-survival rate was recorded in Vienna (51.1%).

The 3-year survival rate of enterprises decrease from one cohort to the next: newly born in 2005 (second cohort) survived to 2008 is 73.9%, survival rate of enterprises newly born in 2006 (third cohort) survived to 2009 is 72.4%, survival rate of enterprises newly born in 2007 (fourth cohort) survived to 2010 is 71.4%, average survival rate of enterprises newly born in 2008 (fifth cohort) survived to 2011 is 69.5% and the average survival rate of enterprises newly born in 2009 (sixth cohort) survived to 2012 is 69.8%.

Survival rates of enterprises newly born in 2004
Survival rates of enterprises newly born in 2004 by employee size classes
Survival rates of enterprises newly born in 2004 by provinces


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