Looking at U.S. Census Bureau business data, which shows a rather steady trend from the late 1980s to early 2000s, a pattern emerges.
“One-year and five-year survival rates peak around downturns, showing an expected business cycle effect,” stated a Business Dynamics Statistics report by the Census Bureau. “The one-year survival rates for establishments born to firms started in 2004 was 76.4 percent and the five-year survival rates for establishments born to firms started in 2000 was 50.7 percent.”
Business Dynamics Statistics measure business openings, closings, startups and jobs.
“The U.S. economy is comprised of more than 6 million establishments with paid employees,” the Census Bureau report on entrepreneurship stated. “The population of these businesses is constantly churning — some businesses grow, others decline, and yet others close. New businesses constantly replenish this pool.”
The Brainerd Lakes Area Economic Development Corp. reports there were 2,142 companies across multiple industries in Crow Wing County as of the third quarter in 2011, an increase from the 1,935 in 2000. Those companies employed 28,014 in the county as of 2011 As of June 2013, the Minnesota Department of Employment and Economic Development listed 31,996 people employed out of a labor force of 34,076 in the county.