The real clock.
What public data says about how long a business takes, in six charts.
Year 0
A record year for starting.
Americans filed more business applications in 2025 than in any year on record.
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5,671,836
U.S. business applications in 2025, the most in any year of the series
U.S. Census Bureau, Business Formation Statistics . 2025.
Derived: Sum of the twelve monthly values, not seasonally adjusted (series BA_BA). The Census Bureau revises the series each year.
These figures describe all new U.S. businesses, not WE's results.
Yearly U.S. business applications, 2005 to 2025.
Source: U.S. Census Bureau, Business Formation Statistics . Sum of the twelve monthly values, not seasonally adjusted (series BA_BA). The Census Bureau revises the series each year.
Show the data
| Year | Applications |
|---|---|
| 2005 | 2,485,100 |
| 2006 | 2,615,834 |
| 2007 | 2,633,956 |
| 2008 | 2,559,006 |
| 2009 | 2,406,259 |
| 2010 | 2,473,934 |
| 2011 | 2,550,495 |
| 2012 | 2,550,198 |
| 2013 | 2,591,539 |
| 2014 | 2,691,040 |
| 2015 | 2,795,897 |
| 2016 | 2,948,338 |
| 2017 | 3,182,674 |
| 2018 | 3,486,829 |
| 2019 | 3,498,990 |
| 2020 | 4,356,498 |
| 2021 | 5,390,816 |
| 2022 | 5,062,563 |
| 2023 | 5,469,302 |
| 2024 | 5,224,176 |
| 2025 | 5,671,836 |
Years 0 to 2
Few become employers quickly.
Of 2021's applications, 7.5% had hired anyone within two years, and the wait to first payroll has grown.
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7.5%
of 2021 applications became employer businesses within two years
U.S. Census Bureau, Business Formation Statistics ; U.S. Census Bureau, Business Formation Statistics definitions . Applications filed in 2021.
Derived: 403,072 formations within eight quarters (BF_BF8Q) out of 5,390,816 applications (BA_BA), monthly values summed.
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2.29 quarters
from application to first payroll in 2021, against 1.48 in 2005
U.S. Census Bureau, Business Formation Statistics ; U.S. Census Bureau, Business Formation Statistics definitions . 2021 and 2005 applications.
Derived: Mean of the twelve monthly values of DUR8Q, for applications that formed within eight quarters.
These figures describe all new U.S. businesses, not WE's results.
What became of the business applications filed in 2021, and the wait from application to first payroll.
Source: U.S. Census Bureau, Business Formation Statistics ; U.S. Census Bureau, Business Formation Statistics definitions . 403,072 formations within eight quarters (BF_BF8Q) out of 5,390,816 applications (BA_BA), monthly values summed.
Show the data
| Measure | Value |
|---|---|
| Business applications filed in 2021 | 5,390,816 |
| Became employers within one year | 315,318 (5.8%) |
| Became employers within two years | 403,072 (7.5%) |
| Quarters to first payroll, 2005 applications | 1.48 quarters |
| Quarters to first payroll, 2021 applications | 2.29 quarters |
Years 0 to 10
About half are gone by year five.
About 1 in 5 close in year one, about half by year five, and about a third remain at year ten. Software-heavy and professional-services businesses follow the same curve.
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77.9%
of new U.S. establishments were still operating after one year
U.S. Bureau of Labor Statistics, Business Employment Dynamics, Table 7 . Opened in the year to March 2024.
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51.4%
were still operating after five years
U.S. Bureau of Labor Statistics, Business Employment Dynamics, Table 7 . Opened in the year to March 2020.
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34.7%
were still operating after ten years
U.S. Bureau of Labor Statistics, Business Employment Dynamics, Table 7 . Opened in the year to March 2015.
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45.7%
of Information-sector establishments survived five years (50.8% in professional and technical services)
BLS Business Employment Dynamics, Table 7, NAICS 51 ; BLS Business Employment Dynamics, Table 7, NAICS 54 . Opened in the year to March 2020.
These figures describe all new U.S. businesses, not WE's results.
- All private-sector establishments
- Information (includes software)
- Professional and technical services
Shaded behind the lines: Ignite (to 6 months), Build (to 18 months), Launch (to year 3), Grow (to year 5) and Orbit (after year 5).
Share of establishments still operating, by years since opening, for those opened in the year to March 2015.
Source: U.S. Bureau of Labor Statistics, Business Employment Dynamics, Table 7 ; BLS Business Employment Dynamics, Table 7, NAICS 51 ; BLS Business Employment Dynamics, Table 7, NAICS 54 . The shaded phases are WE's names for the years, not the source's.
Show the data
| Years since opening | All private sector | Information | Professional and technical services |
|---|---|---|---|
| 0 | 100% | 100% | 100% |
| 1 | 79.6% | 80.8% | 81.6% |
| 2 | 69.1% | 70% | 71.2% |
| 3 | 61.4% | 60.8% | 63% |
| 4 | 55.4% | 53.3% | 56% |
| 5 | 50.2% | 46.8% | 50.3% |
| 6 | 46.4% | 42.6% | 46.9% |
| 7 | 43.6% | 38.6% | 43.2% |
| 8 | 40.3% | 35.4% | 40% |
| 9 | 37.4% | 33% | 37.2% |
| 10 | 34.7% | 30% | 34.3% |
Months 0 to 60
Three months, or three to five years.
Many programs for founders are designed for about three months. A business is not counted as established until it is 42 months old.
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3 months
is the usual length of a fixed-term program; incubation runs 1 to 5 years
Cohen and Hochberg (2014) . Typology, 2014.
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42 months
before GEM counts a business as established (3.5 years)
Global Entrepreneurship Monitor, U.S. report 2025/2026 (Babson College) . Definition.
These figures describe all new U.S. businesses, not WE's results.
- A fixed-term program for founders (Cohen and Hochberg (2014)) 3 months
- Incubation, as the research defines it (Cohen and Hochberg (2014)) 1 to 5 years
- Counted as an established business (Global Entrepreneurship Monitor, U.S. report 2025/2026 (Babson College)) 42 months
- About half of new establishments have closed (SBA Office of Advocacy, Frequently Asked Questions About Small Business (2026)) 5 years
One months axis, from the start of a business to its fifth year.
Source: Cohen and Hochberg (2014) ; Global Entrepreneurship Monitor, U.S. report 2025/2026 (Babson College) ; SBA Office of Advocacy, Frequently Asked Questions About Small Business (2026) .
Show the data
| What | From | To | As the source puts it |
|---|---|---|---|
| A fixed-term program for founders | Month 0 | Month 3 | 3 months |
| Incubation, as the research defines it | Month 12 | Month 60 | 1 to 5 years |
| Counted as an established business | Month 42 | Month 42 | 42 months |
| About half of new establishments have closed | Month 60 | Month 60 | 5 years |
Years 1 to 10
Every year survived makes the next more likely.
The hardest years are the first five. After that, the odds turn.
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94.4%
of establishments still open after eight years survived their ninth, against 79.6% in their first
U.S. Bureau of Labor Statistics, Business Employment Dynamics, Table 7 . Opened in the year to March 2013.
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69.5%
of businesses that reach five years also reach ten
SBA Office of Advocacy, Frequently Asked Questions About Small Business (2026) . 1994 to 2022 average.
These figures describe all new U.S. businesses, not WE's results.
Of establishments still open at the start of each year, the share that survived that year. Opened in the year to March 2013.
Source: U.S. Bureau of Labor Statistics, Business Employment Dynamics, Table 7 .
Show the data
| Year | Survived the year |
|---|---|
| Year 1 | 79.6% |
| Year 2 | 86.6% |
| Year 3 | 89.0% |
| Year 4 | 90.1% |
| Year 5 | 91.5% |
| Year 6 | 92.2% |
| Year 7 | 91.7% |
| Year 8 | 93.2% |
| Year 9 | 94.4% |
Any year
It is rarely the idea.
Among venture-backed startups that shut down, running out of capital and missing product-market fit led the reasons given.
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70%
of venture-backed startups that shut down cited running out of capital
CB Insights (2026), venture-backed startups that shut down; more than one reason allowed . Shutdowns since 2023.
Venture-backed startups only. A company could give more than one reason.
These figures describe all new U.S. businesses, not WE's results.
Reasons given by venture-backed startups that shut down since 2023.
Source: CB Insights (2026), venture-backed startups that shut down; more than one reason allowed .
Venture-backed startups only. A company could give more than one reason.
Show the data
| Reason | Share citing it |
|---|---|
| Ran out of capital | 70% |
| Poor product-market fit | 43% |
| Bad timing | 29% |
| Unsustainable unit economics | 19% |
Paced, not packed.
Research that sorts programs for founders finds two shapes. Fixed-term programs usually run about three months. Incubation, as the same research defines it, runs one to five years.
WE works to the longer clock: phases matched to the survival curve, written reviews at years one, three and five, and a team that steps down as the company needs less, rather than stopping on a date.
WE does not claim that this changes any survival figure on this page. It is how WE chooses to pace the work.
Source: Cohen and Hochberg (2014).
- Ignite, 0 months to 6 months
- Build, 6 months to year 1.5
- Launch, year 1.5 to year 3
- Grow, year 3 to year 5
- Orbit, from year 5 on
- Written reviews at years 1, 3 and 5.
Experience is the head start.
The founders of the fastest-growing startups are, on average, in their forties. Industry experience is one of the strongest signals in the data.
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1.8x
as likely: a 50-year-old founder against a 30-year-old, for top-growth firms
Azoulay, Jones, Kim and Miranda, Age and High-Growth Entrepreneurship . Founders of 2007 to 2014.
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0.26%
top-growth rate with 3+ years in the same industry, against 0.11% with none
Azoulay, Jones, Kim and Miranda, Age and High-Growth Entrepreneurship . Founders of 2007 to 2009.
These figures describe all new U.S. businesses, not WE's results.
Mean age at founding. All U.S. startups that hire: founded 2007 to 2014. The fastest-growing 1 in 1,000: founded 2007 to 2009.
Source: Azoulay, Jones, Kim and Miranda, Age and High-Growth Entrepreneurship .
Show the data
| Founders | Mean age |
|---|---|
| All founders of U.S. startups that hire | 41.9 years |
| Founders of the fastest-growing 1 in 1,000 | 45.0 years |
The long game
Move fast every week. Build for the decade.
Read the six charts as one rule: the first years are the hardest, and every year survived makes the next more likely. So the week is fast and the plan is patient. WE moves every week on a timeline built for the decade.
Every week
Fast, and written down.
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1 Plan The week’s cycle is set in writing. -
2 Build A dedicated team ships the work. -
3 Report A written status, every week. -
4 Decide You say yes or no to the next cycle.
Every year
Patient, because the odds turn slowly.
Most new businesses close in the first five years. After that, each year survived makes the next more likely. WE paces the work to that curve.
So WE is built for the clock.
WE paces the work in phases matched to this curve, with reviews at years one, three and five, and no fixed end date.
These figures describe all new U.S. businesses, not WE's results. No one can promise that a company will survive. WE's promise is to do the work on the real timeline.
The wider ecosystem
Join the programs that fit. WE stays for the long run.
WE does not compete with the programs around you. Founder programs, coworking spaces, investor communities and public funding each do something WE does not, and most founders do best using several. Join the ones that fit. WE works alongside, for as long as the work is useful.
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Founder programs
Structured, time-boxed programs with a peer group and a deadline.
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Coworking spaces
A desk, a room and people who are building too.
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Investor communities
Angel groups and investor relations events where you meet the people who fund companies.
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University and lab programs
Research, labs and technology transfer for science-based companies.
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Local small business support
Advisers, training and regional networks close to home.
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Public funding
Federal research awards such as SBIR and STTR.
Independent programs that WE encourages founders to consider. No affiliation or endorsement is implied.
Public funding
Apply to SBIR and STTR.
The Small Business Innovation Research and Small Business Technology Transfer programs fund small businesses to do research and development. If your company is building something technical, apply, and keep applying.
WE helps founders prepare alongside. WE is not an agency and cannot promise an award.
- 1 Find The agency topics that match what you build.
- 2 Prepare The registrations, the plan and the proposal.
- 3 Apply Submit, learn from the review and go again.
Sources
- Business Formation Statistics, monthly data (CSV), U.S. Census Bureau . Accessed October 14, 2026.
- Business Formation Statistics: Definitions, U.S. Census Bureau . Accessed October 14, 2026.
- Business Employment Dynamics, Table 7: Survival of private sector establishments by opening year (total private), U.S. Bureau of Labor Statistics . Accessed October 14, 2026.
- Business Employment Dynamics, Table 7: Survival of private sector establishments by opening year (Information, NAICS 51), U.S. Bureau of Labor Statistics . Accessed October 14, 2026.
- Business Employment Dynamics, Table 7: Survival of private sector establishments by opening year (Professional, Scientific, and Technical Services, NAICS 54), U.S. Bureau of Labor Statistics . Accessed October 14, 2026.
- Accelerating Startups: The Seed Accelerator Phenomenon (Cohen and Hochberg, 2014), Table 2, University of Colorado Boulder, Leeds School of Business (faculty copy) . Accessed October 14, 2026.
- GEM USA 2025/2026 report coverage, Babson College . Accessed October 14, 2026.
- Frequently Asked Questions About Small Business, 2026, U.S. Small Business Administration, Office of Advocacy . Accessed October 14, 2026.
- The top reasons startups fail, CB Insights . Accessed October 14, 2026.
- Age and High-Growth Entrepreneurship (Azoulay, Jones, Kim and Miranda), NBER Working Paper 24489, National Bureau of Economic Research . Accessed October 14, 2026.