California bosses like to complain that the Golden State is a very difficult place to operate.
Well, by one yardstick of business success, California runs in the middle of the pack among the states for business survival.
My trusty spreadsheet analyzed a LendingTree study that examined government statistics on the longevity of establishments to identify which individual businesses lasted 10 years or more. The data covered the decade ending in March 2025, so it included the pandemic – not an easy period for any business.
By this math, California ranks as the 28th riskiest state in which to do business, with only 34% of establishments open after 10 years.
Yes, only one-third of California businesses survive a decade or more.
However, note that this is a typical success rate, as it’s only slightly below the 35% national norm.
National extremes
Which states offer the highest 10-year survival odds?
The top states were Hawaii and Minnesota, with 42% of establishments running after a decade, followed by Iowa at 40%.
And where was business longevity most challenged? The District of Columbia and New Mexico at 27% and Wyoming at 29%.
Now, how did California compare with its key economic rivals?
Texas was better, with the 14th-best survival rate at 37%. Florida was on par with the Golden State at 34%.
Short-term success
Similar stats suggest California bosses have recently been better at starting a business than keeping it going.
And that’s common anywhere there’s a strong entrepreneurial spirit.
Look at how many establishments made it to their first birthday in the past year. California’s 80% one-year survival rate is the fourth-highest among the states.
This outperformance may also be tied to the California economy’s relative strength. The national norm is 78%.
Who’s better? Washington state and South Carolina at 82% and Louisiana at 80.4%.
The nation’s worst? The District of Columbia at 67%, Tennessee at 71% and Delaware at 73%.
By the way, Texas was No. 19 at 78%. Florida? No. 36 at 76%.
Business busts
Nationally speaking, longevity isn’t simply a state’s level of perceived business friendliness.
Survival seems linked to the chosen business niche, looking at 10-year survival.
Among the 19 U.S. industries studied, the riskiest craft was mining and energy, where only 25% of establishments reached their 10-year anniversary. Remember, finding the next gusher is difficult.
The second-riskiest was a California specialty. The information craft – largely creative types in technology – saw only 30% of its establishments last more than a decade. Creating the next big thing is a roll of the dice.
Other trades with low success levels do stuff for other businesses.
Only 34% of professional service providers survive 10 years – that includes engineers, architects and accountants. Wholesaling (think warehouses) and management (think consultants) were 36%.
At the other end of the longevity spectrum, you find businesses providing some of everyday life’s necessities.
Agriculture was No. 1, with 53% of its establishments operating for more than 10 years. People always have to eat. Utilities were next at 47%. We need heat and lights.
Manufacturing and real estate management followed, with 45% reaching 10 years.
These relative success stories tend to come from industries dominated by large, slow-growing operations with little risk-taking.
Then, at fifth-best, comes what seems like a shocker – retailing, where 44% of establishments reach 10 years.
Here’s the lesson: While it’s human nature to focus on all those once-favorite shopping spots now gone, we forget how many merchants are still around.
Or digest the ranking this way: If the typical retailer survives longer than most bosses, think of how tough it is to run any other business.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
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No. 11: Newport Beach reduces affordable housing near JWA
No. 12: California’s $627,000 average equity ranks No. 2 in US
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No. 16: 65 units of affordable housing in Midway City stacked into place
No. 17: New waterfront estate in Big Bear Lake lists for $15M
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