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What Does a Look at Survival Rates for Small Businesses

Question 136

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What does a look at survival rates for small businesses over their first ten years show?


A) The majority of small businesses fail before they have been in business for three years.
B) They fall at a slow but steady rate over the first five years, but failures occur more frequently after year five.
C) They tend to drop more rapidly during the first five years, but then they fall more slowly.
D) Over 72 percent of all small firms remain in business for at least seven years, and almost 65 percent are still in business after ten years, suggesting that small businesses aren't as risky as most people think.

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