Stumbled on a stat about Detroit small biz failure rates that made me sick

I was digging through some city data last night after my landlord hiked my rent again, and found that over 60% of Detroit businesses close within 5 years. That number hit me hard because I just hit year 3 with my shop and I am barely breaking even. How are you guys making it past that mark without going under?

3 comments

3 Comments

west.richard1mo ago

That 60% figure isn't exactly right for Detroit specifically. The standard small biz failure stat is closer to 50% nationally over five years. Detroit might be a bit higher, but not by 10 points. I remember reading a Detroit Free Press piece a couple years back that put it around 55% for the city, which is still rough but not as brutal. Numbers get thrown around online all the time without the source. Keep your head up at year three, that's usually the make or break point.

tessa_murray1mo ago

Yeah I used to roll my eyes at that stat too, figured it was just fear-mongering or bad data. But being in year three myself and watching my savings drain month after month, it's starting to feel pretty real. Guess that number's got more truth to it than I wanted to admit.

jenny471mo ago

Honestly @west.richard, I used to think the 60% number was just another scary stat people threw around, but seeing how close I am to that edge myself it really made me question everything. Those extra few percentage points don't matter as much when you're the one sweating it out month to month. I guess the real lesson is that no matter the exact number, year three is where you figure out if you've got real legs or not.