California Businesses Survival Rate Statistics
Nearly 70% of California businesses fail to survive past the 10-year mark, according to a recent analysis of federal data by financial information firm LendingTree cited by the LA Daily News. The study reveals that the 10-year survival rate for California companies stands at 34%, sitting just 1% below the national average of 35%. Overall, California’s business risk rank sits at 28th nationwide for a ten-year period ending in March 2025, which notably includes the COVID-19 pandemic.
Startup Success vs Long-Term Survival
While long-term survival matches the national average, California businesses display notable strength in early-stage survival. Over the past year, the one-year survival rate for new California businesses hit 80%, outperforming the 78% national average and securing the 4th spot nationwide. Washington and South Carolina led at 82%, followed by Louisiana at 80.4%. Meanwhile, Texas recorded a 78% one-year rate (ranking 19th) and Florida hit 76% (ranking 36th). However, Texas surpassed California in long-term success, boasting a 10-year survival rate of 37% (14th nationally), while Florida matched California at 34%.
Industry Breakdown for Business Survival
LendingTree’s analysis shows that 10-year survival rates vary drastically by industry. Mining and energy recorded the lowest survival rate at just 25%. The information sector, a primary driver for California, reached only 30%, while professional services sat at 34%, and wholesale trade alongside management and consulting both hit 36%. Conversely, agriculture recorded the highest survival rate at 53%, followed by utilities at 47%, manufacturing and real estate management at 45%, and retail trade at 44%.
