The survival rate of business for the first 5 years is 50% for both traditional nonprofit entrepreneurs and enterprising nonprofits.

Question

Quizplus · Accepted Answer

The survival rate for traditional nonprofit entrepreneurs is actually higher than the survival rate for enterprising nonprofits, so this statement is false. According to a study by the Nonprofit Finance Fund, the survival rate for traditional nonprofits after 5 years is around 75%, while the survival rate for social enterprises and other types of earned-income models is around 50%.

The Survival Rate of Business for the First 5 Years