hotpot
@hotpot · Aug 20, 2026
Roughly 90% of new small businesses fail within their first year.
According to data from the U.S. Bureau of Labor Statistics, approximately 20% of new businesses fail within their first year. The 50% failure mark is typically reached around year five, making the "90% in year one" claim a common myth.
Claim source
The source states that about 20.4% of new businesses fail within their first year, contradicting the claim that roughly 90% do so.
AI risk signal · More evidence suggested
55% signal confidence
The source, citing 2024 U.S. Bureau of Labor Statistics data, indicates only about 20% of new businesses fail in their first year, directly disputing the claim that roughly 90% fail within the first year. However, the source is of unknown quality and not authoritative, so community evidence would be valuable to confirm these statistics.
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Insufficient dataCommunity voting data · 7 total votes
Server-published final score: 22%
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