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from one year to the other: One year after its creation, at least one enterprise out of ten newly born in 2004 was no longer active on the market.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 80.7%. One year later still 72.5% of the enterprises were active and four years later, around two thirds (66.1%) of this cohort survived. The five-year-survival rate amounted to 60.6%. 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 five-year-survival rates were registered in the economic branches of "Human Health and Social work activities" (75.1%), "Real estate activities" (72.1%) and "Other service activities" (69.1%).

Analysis of the survival rates by employee size classes reveals that the survival rate tends to increase as the number of employees rises (at least for enterprises with up to 9 employees). For example, the average survival rate after five years for enterprises with no employees was 58.6%, but as high as 71.2% for enterprises with from 5 to 9 employees. For enterprises with 10 or more employees the survival rate slightly decreased again (69.0%).

Above average are the five-year-survival rates in the provinces Tyrol (66.4%), Carinthia (63.0%) and Salzburg (62.5%). The lowest five-year-survival rate was recorded in Vienna (57.6%).

The average survival rate of enterprises newly born in 2005 (second cohort) and survived to 2006 was 89.1%. One year later (2007) 79.0% of the around 29 600 enterprises created in 2005 were still active. In 2008, 71.8% and in 2009, 64.7% of the enterprise births from 2005 survived.

The average survival rate of enterprises newly born in 2006 (third cohort) and survived to 2007 was 87.8% and 77.4% after two years (2006 to 2008). In 2009, 69.5% of the enterprises created in 2006 were still active.

The average survival rate of enterprises newly born in 2007 (fourth cohort) and survived to 2008 was 86.8%. One year later (2009) 76.7% of the around 27 000 enterprises created in 2007 survived.

    
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Main results: Survival rates of enterprises newly born in 2004HTMLPDFXLSX
Main results: Survival rates of enterprises newly born in 2004 by employee size classesHTMLPDFXLSX
Main results: Survival rates of enterprises newly born in 2004 by provincesHTMLPDFXLSX
Main results: Survival rates of enterprises newly born in 2005HTMLPDFXLSX
Main results: Survival rates of enterprises newly born in 2005 by employee size classesHTMLPDFXLSX
Main results: Survival rates of enterprises newly born in 2005 by provincesHTMLPDFXLSX


Sabrina Laufer


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