MICHIGAN, USA — Michigan has ranked in the top 10 U.S. states with the highest new business survival rates, according to a new study.
The study was conducted by invoicing the software company Bookipi.
The company analyzed data from the U.S. Bureau of Labor Statistics on the number of new businesses launched in each state in 2018 and those still in business in 2023.
The data was then used to calculate each state's five-year survival rate for new businesses, highlighting those with the best rates.
The top 10 list of states is as follows:
- Montana - 57.63% five-year survival rate
- Minnesota - 57.61% five-year survival rate
- Alaska - 57.32% five-year survival rate
- West Virginia - 57.08% five-year survival rate
- Massachusetts - 56.68% five-year survival rate
- Virginia - 56.52% five-year survival rate
- South Dakota - 56.08% five-year survival rate
- Illinois - 55.07% five-year survival rate
- Michigan - 55.05% five-year survival rate
- Alabama - 54.36% five-year survival rate
As listed above, new businesses launched in Michigan were found to have a 55.05% five-year survival rate.
Of the 15,449 businesses started in Michigan in 2018, 8,504 were still operating in 2023.
Employment in these businesses grew from 65,077 to 68,692 over five years, reflecting a 5.55% increase.
These statistics led the company to rank Michigan as the ninth-best state to start a new business.
