Louisiana Ranks Third in Nation for New Business Survival Rate

The state's low first-year failure rate shows businesses are finding their footing despite national challenges.

Apr. 10, 2026 at 9:08pm

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A highly polished, geometric metal sculpture in the shape of the state of Louisiana, resting on a clean, monochromatic background and dramatically lit to convey the state's strong business fundamentals and entrepreneurial spirit.A sleek, minimalist sculpture of Louisiana symbolizes the state's robust new business survival rates, outperforming the national average.Baton Rouge Today

A new study by LendingTree has found that Louisiana has the third-lowest first-year business failure rate in the nation at 19.6%, compared to the national average of 22.1%. Louisiana also ranked lower than the national average for 5-year and 10-year business survival rates. The study shows that even in a challenging national environment, many new businesses in Louisiana are finding success, though long-term success still depends on factors like understanding your audience and disciplined spending.

Why it matters

Louisiana's strong new business survival rates indicate the state is fostering an environment conducive to entrepreneurship and small business growth, which can drive economic development and job creation. The findings challenge perceptions that Louisiana may not be a favorable state for starting a business.

The details

The LendingTree study found that Louisiana's first-year business failure rate of 19.6% is the third-lowest in the nation, behind only South Carolina and Washington. The national average first-year failure rate is 22.1%. Louisiana also ranked lower than the national averages for 5-year (47.1% vs 48.6%) and 10-year (64.4% vs 65.3%) business survival rates.

  • The LendingTree study was conducted in 2026.

The players

LendingTree

An online lending marketplace that connects consumers with multiple lenders, banks, and credit partners for various loan products.

Matt Schulz

Chief Consumer Finance Analyst at LendingTree.

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What they’re saying

“The low first-year failure rates in states such as Louisiana and South Carolina show that even in a challenging national environment, many new businesses are finding their footing across the country. That doesn't mean it's easy, though. Long-term success still depends on fundamentals like understanding your audience, solving a real problem and staying disciplined with your spending.”

— Matt Schulz, Chief Consumer Finance Analyst

What’s next

The findings from the LendingTree study could prompt further research into the factors contributing to Louisiana's strong new business survival rates, such as state policies, access to capital, and industry trends. This data may also encourage more entrepreneurs to consider starting businesses in Louisiana.

The takeaway

Louisiana's low first-year business failure rate, ranking third nationally, demonstrates the state's ability to foster an environment conducive to entrepreneurship and small business growth. This challenges perceptions about the state's business climate and suggests Louisiana is an attractive location for starting a new venture.