INEGI: Average 'Life Expectancy' of a New Business in Mexico is 7.7 Years Murry Page - The Mazatlan Messenger
go to original February 23, 2015

In the first study of its kind by the National Institute of Statistics and Geography (INEGI), based upon its economic survey of 1989-2009, a new business created in Mexico has a life expectancy of 7.7 years.

A spokesperson for the INEGI said that in any given year during the census period 64 percent of the new business will not last one year, 30 percent will survive for five years and only 11 percent will still be in operation 20 years later.

The study revealed that the life expectancy is longer for businesses that have more employees. It noted that the sectors that have the greatest life expectancy for a new business are manufacturing, followed by services. The trade sector has the shortest life expectancy.

The INEGI said that the primary reasons for the failure of a new business is the lack of profitability caused by low demand for the product or service offered, lack of market research or economic deficiencies.

See the original at The Mazatlan Messenger

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