Survival rates of newly created employer enterprises

After one year (2006) about three-quarter of the employer enterprises founded in 2004 were still active on the market. The three-year survival rate (2004 to 2007) amounted to 72.2%, and after four years (in 2008) 66.8% of this cohort survived. Five years later (in 2009), more than half of these employer enterprises were still active (57.7%) and after six years still 53.4% are active and after seven years 53.4% survived. In 2012 48.8% were still active.

In the economic branches “Human health and social work activities” (74.9%), “Water supply; sewerage, waste management and remediation activities” (69.0%) and “Electricity, gas, steam and air conditioning supply” (67.9%) the eight-year survival rates of employer enterprises founded in 2004 were above average. By contrast, in the sectors “Real estate activities” (35.9%) or „Mining and quarrying “(37.5%) these rates were below average.

Particularly high eight-year survival rates were found for employer enterprises with between 10 and more employees (60.2%); the rate was lowest for employer enterprises with 1 to 4 employees (47.7%). Concerning employer enterprises with employees between 5 and 9, which were founded in 2004, almost 59.3% survived until 2012.

The results by provinces for the employer enterprises founded in 2004 show that in particular, employer enterprises in Tyrol (55.5%), Vorarlberg (53.6%) and Salzburg (51.8%) had above-average eight-year survival rates. The lowest eight-year survival rate was found for Vienna (43.3%).

The three year survival rate decrease from one cohort to the next: The employer enterprises founded in 2005 (second cohort) survived to 72.5% after three years. Employer enterprises founded in 2006 (third cohort) survived to 2009 in 72.0%. The employer enterprises founded in 2007 (fourth cohort) have been active in 68.7% after three years. The employer enterprises founded in 2008 (fifth cohort) survived to 68.6% after three years. Those employer enterprises born in 2009 and survived until 2012 had a rate of 66.8%.