Startup survival rate for under-39 CEOs rises for seventh consecutive year

Startups led by entrepreneurs under 39 are showing a consistent upward trend in their survival rates, with the five-year survival rate for companies founded in 2018 reaching 32.9%. This marks a significant increase from the 25.0% survival rate for companies founded in 2011, indicating that roughly one in three startups founded in 2018 are still in operation five years later, compared to one in four from the 2011 cohort.

The analysis, based on national data, reveals that this improvement is observed across different age brackets. Companies led by individuals under 30 saw the most substantial gains, with their five-year survival rate increasing by 8.6 percentage points over seven years, from 18.1% for the 2011 cohort to 26.7% for the 2018 cohort. Those in their 30s also experienced growth, with their survival rate rising from 27.4% to 35.3% during the same period.

Even startups led by individuals aged 40 and above have seen their survival rates improve, increasing by 7.4 percentage points to 38.0% for the 2018 cohort. However, a gap persists, with younger-led companies consistently showing lower survival rates than their older counterparts, although the difference has slightly narrowed over time.

In response to these trends, the South Korean government is intensifying its support for startups. Initiatives include discovering 15,000 innovative entrepreneurs through a national startup audition program, providing initial operating funds, and offering substantial business development funds for successful participants. Tax incentives for young entrepreneurs and the expansion of startup support centers within science and technology institutions are also part of the plan. The government aims to foster a "national startup era" by supporting new ventures from idea to market, with a focus on regional development and the creation of a 50 billion won (approximately $36 million) "startup boom fund."

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We will foster more than 100,000 young entrepreneurs through initiatives like the 'Everyone's Startup Project' or the establishment of youth-specific leagues.