Survival rates of newly created employer enterprises

After one year (2006) about three-quarter of the employer enterprises founded in 2004 were still active on the market. The three-year survival rate (2004 to 2007) amounted to 65.9%, and after four years (in 2008) 58.9% of this cohort survived. Five years later (in 2009), more than half of these employer enterprises were still active (52.1%).

In the economic branches “Human health and social work activities” (69.6%), “Electricity, gas, steam and air conditioning supply” (67.9%) and “Mining and quarrying” (66.7%) the five-year survival rates of employer enterprises founded in 2004 were above average. By contrast, in the sectors “Arts, entertainment and recreation” (43.9%) or „Transportation and storage“(47.5%) these rates were below average. Particularly high five-year survival rates were found for employer enterprises with between 5 and 9 employees (64.4%); the rate was lowest for employer enterprises with between 1 and 4 employees (50.6%). Concerning employer enterprises with 10 or more employees that were founded in 2004, almost 62% survived until 2009. The results by provinces for the employer enterprises founded in 2004 show that in particular, employer enterprises in Tyrol (58.5%), Vorarlberg (56.9%) and Salzburg (56.1%) had above-average five-year survival rates. The lowest five-year survival rate was found for Vienna (47.2%).

The employer enterprises founded in 2005 (second cohort) survived to 86.3% after one year. The two-year survival rate (2005 to 2007) of this cohort amounted to 74.1%. After three years 64.9% and after four years 57.4% were still active. Employer enterprises founded in 2006 (third cohort) survived to 86.5% after one year. The two-year survival rate (2006 to 2008) was 73.5%. Three years later, 63.3% of this cohort was still active. The one-year survival rate of the employer enterprises founded in 2007 (fourth cohort) amounted to 82.9%. One year later (2009) 69.1% of these around 16 500 employer enterprises were still active on the market.