JSM 2004 - Toronto

Abstract #301632

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Activity Number: 434
Type: Contributed
Date/Time: Thursday, August 12, 2004 : 10:30 AM to 12:20 PM
Sponsor: Section on Government Statistics
Abstract - #301632
Title: Characteristics of Survival: Longevity of Business Establishments in the Business Employment Dynamics Data
Author(s): Amy E. Knaup*+
Companies: Bureau of Labor Statistics
Address: 2 Massachusetts Ave. NE, Washington, DC, 20212,
Keywords: survival rates ; births
Abstract:

An examination of the U.S. economy reveals that about 60% of business establishments which opened in second quarter of 1998 were still in existence 24 months later. The largest drop in surviving businesses occurs within the first six months, when 13% of establishments are no longer operating. This paper uses the data from the new Business Employment Dynamics series to characterize opening establishments for the period of 1998-2000 according to two-digit NAICS sector, location, employment levels, ownership status, and survival rates based upon these characteristics. Survival rates across two-digit NAICS sectors vary from 53% in the educational services sector to 74% in the utilities sector. Contributions to the number of opening establishments, however, vary more widely, from one percent to nearly 50% of establishments. Both survival rates and employment depend heavily on location and ownership status, while time to peak employment seems unaffected by either.

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