Business survival rates in European countries in 2017, by length of survival

Almost one in five new businesses in Europe failed in their first year, with almost two thirds surviving for three years, and less than half surviving for five years. In 2017, Sweden had the highest share of businesses surviving after one year at 96.2 percent, while Lithuania had the lowest share at just 64.1 percent.

Business survival rates in selected European countries in 2017, by length of survival

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Source

Release date

March 2020

Region

Europe, EU

Survey time period

2017

Supplementary notes

* Data for Cyprus is from different years: 1 year survival date is based on 2014 data, and 3 and 5 year survival rate on 2016 data.

** Data for Ireland is from different years: 3 year survival date is based on 2015 data, and 5 year survival rate on 2016 data.

*** Data for Turkey is from 2015.

In the Business Demography context, survival occurs if an enterprise is active in terms of employment and/or turnover in the year of birth and the following year(s). Two types of survival can be distinguished:

1. An enterprise born in year xx is considered to have survived in year xx+1 if it is active in terms of turnover and/or employment in any part of year xx+1 (= survival without changes).

2. An enterprise is also considered to have survived if the linked legal unit(s) have ceased to be active, but their activity has been taken over by a new legal unit set up specifically to take over the factors of production of that enterprise (= survival by take-over).

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