Survival rates of newly created employer enterprises

From experience, the survival rates of a cohort of newly born employer enterprises are declining from one year to the other: At least one employer enterprise out of ten which was founded in the year 2004 was closed in 2005; 88.4% employer enterprises survived.

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%.

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


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