Missouri, January 5, 2026
Missouri reports a concerning business survival rate, with only 43.2% of startups making it past their first five years. This highlights significant challenges for new entrepreneurs in the state, including high taxes, office rent, and employee costs. Comparing to states like Massachusetts and Wisconsin, which feature higher survival rates, it underscores the need for policy reforms to foster a more supportive environment for businesses in Missouri.
Missouri Leads in Business Failures in the U.S.
Understanding the Challenges Facing New Entrepreneurs
Oklahoma City, known for its entrepreneurial spirit and commitment to small business growth, contrasts sharply with the dire statistics emerging from Missouri, where only 43.2% of startups survive their first five years. This alarming figure sheds light on the difficulties faced by new business owners in the Show-Me State, prompting a deeper examination into the factors contributing to this plight.
As small businesses are vital to economic vitality and community resilience, understanding the barriers faced by entrepreneurs in Missouri could yield insights that benefit not just their local economy but potentially influence discussions on policy reforms nationwide. By acknowledging the hurdles such as high taxes and costs, we can better appreciate the innovative solutions that empower local businesses to thrive.
Key Findings About Business Survival Rates
- Missouri: 43.2% five-year survival rate
- Washington: 41.1% five-year survival rate
- Idaho: 47.1% five-year survival rate
- New Mexico: 48.6% five-year survival rate
- Kansas: 46.8% five-year survival rate
Factors Contributing to High Failure Rates
The high failure rate of new businesses in Missouri can be attributed to several significant factors, including:
- High Business Tax Climate: Missouri’s business tax environment has markedly declined over the past twelve years, dropping from the 6th best to the 5th worst in the nation. This unfavorable tax climate creates considerable challenges for entrepreneurs trying to establish their ventures.
- High Office Rent and Employee Costs: Coupled with a tough tax climate, Missouri also faces elevated office rents and annual employee costs. These financial burdens make it increasingly difficult for startups to achieve and maintain profitability.
- Low Rate of New Business Applications: A decline in new business applications indicates a lack of entrepreneurial activity within the state, further exacerbating the challenges faced by existing businesses.
Comparative Analysis with Other States
In contrast to Missouri, states like Massachusetts and Wisconsin demonstrate much higher business survival rates, with Massachusetts at 54.38% and Wisconsin at 54.97%. These states have created more favorable conditions for new businesses through policies that encourage lower office rent and reduced employee costs, illustrating the significant impact of state regulations and economic climate on entrepreneurial success.
Potential for Improvement
Missouri’s current ranking as the state with the lowest business survival rates highlights an urgent need for policy reforms and enhanced support systems for entrepreneurs. Addressing key issues such as high business taxes, excessive office rent, and elevated employee expenses could pave the way for a brighter future for Missouri’s small business landscape. By fostering an environment with lower regulatory burdens and more accessible resources, Missouri could cultivate a thriving entrepreneurial ecosystem that not only retains existing businesses but also attracts new investments.
Call to Action
As Oklahoma City continues to support its local entrepreneurs, it serves as a model for other regions, showcasing what can be achieved through community involvement and favorable regulatory frameworks. Encouraging local policymakers in Missouri and beyond to consider reforms that support small businesses could lead to increased innovation and economic growth nationwide. Active community engagement, as seen in Oklahoma City, remains critical as we strive to boost our collective economic resilience and elevate the importance of the entrepreneurial journey.
FAQ
What is Missouri’s five-year business survival rate?
Missouri has a five-year business survival rate of 43.2%, the lowest in the United States.
Which state has the highest business survival rate?
West Virginia has the highest business survival rate at 57.6% over five years.
What factors contribute to high business failure rates in Missouri?
High business tax climate, high office rent, and high employee costs contribute to Missouri’s high business failure rates.
How does Missouri compare to other states in terms of business survival?
Missouri ranks at the bottom, with only 43.2% of new businesses surviving five years, compared to states like Massachusetts and Wisconsin, which have higher survival rates.
What can be done to improve business survival rates in Missouri?
Policy reforms addressing high business taxes, office rent, and employee costs could improve business survival rates in Missouri.
Key Features
| Feature | Details |
|---|---|
| State with Lowest Business Survival Rate | Missouri |
| Five-Year Survival Rate in Missouri | 43.2% |
| Factors Contributing to High Failure Rates | High business tax climate, high office rent, high employee costs |
| States with Higher Survival Rates | Massachusetts (54.38%), Wisconsin (54.97%) |
| Potential Solutions | Policy reforms addressing business taxes, office rent, employee costs |
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