New establishments as a share of active establishments
This chart shows new establishments as a share of active U.S. establishments over time. It uses Census Business Dynamics Statistics and the agency’s published entry rate; establishments are individual locations rather than necessarily distinct companies, and the data arrive with a substantial lag.
What does it show?
New establishments represent a smaller share of active establishments than they did in the late 1970s.
Methodology
Annual Census Business Dynamics Statistics economy-wide establishment entry rate. Census defines entrants as establishments moving from zero employment in the prior March reference week to positive employment in the current one. The published rate is 100 times entrants divided by the average number of active establishments in the current and prior year, using Census's longitudinally consistent denominator. Establishments are locations, not necessarily distinct firms; the latest BDS release lags the reference year by roughly two years.