A recent national study places Washington at the bottom of the country for new business survival, raising questions about the factors shaping the state’s small business environment. The analysis, conducted by Ringy, followed businesses launched in 2019 and tracked whether they were still operating in 2024.
Nationally, about 51 percent of new businesses remained open after five years. In Washington, that figure was notably lower at 41.1 percent. Of the 22,326 businesses that opened in the state in 2019, only 9,183 were still operating five years later. This ranked Washington last among states reviewed, behind Missouri and the District of Columbia.
The findings suggest that a high volume of new businesses does not necessarily translate into stronger long-term survival. California, for example, saw more than 139,000 new businesses start in 2019 and retained over half of them. Alaska, despite having far fewer startups, posted a similarly strong survival rate. Washington appears to fall between, with many new ventures launching, but a smaller share making it through the early years.
Ringy Chief Operating Officer Carlos J. Correa noted that location plays a significant role in business outcomes. States with higher survival rates often benefit from lower operating costs, reduced competitive pressure, or policies that are perceived as more supportive of small businesses. He emphasized that reaching the five-year mark is a critical milestone, as businesses that do so have typically developed stable customers and more efficient operations.
For Washington retailers and entrepreneurs, the study underscores the importance of careful planning and sustained support during the early years of operation.
