[News Today] How long can small businesses survive?

[LEAD]
South Korea has one of the highest shares of self-employed workers in the world. A new report is shedding light on how long these small businesses, like cafes and restaurants, are actually staying open. Here's more.

[REPORT]
This coffee shop had operated at the same location for seven years.

But it closed earlier this month and the owner still hasn’t finished clearing out the equipment.

Almost one million businesses closed down last year.

That's about one store closure every 30 seconds.

According to the National Tax Service, almost 80% of the small businesses survive past their first year.

But that also means two out of 10 businesses fail in less than a year.

The business survival rate was examined for a three-year period.

At the bottom were online shopping malls.

The survival rate was 45%, meaning 55% closed within three years.

Snack bars and fast food restaurants are also among the bottom three businesses.

In contrast, hair salons had the highest survival rate.

It was followed by small lodging facilities like inns and guesthouses, as well as private teaching academies.

The NTS said that expertise determined the survival rate.

Kim Seong-ki / National Tax Service
Businesses needing certifications have higher survival rates, while low-cost online shopping businesses shut down more easily.

The three-year survival rate of bakeries stood at 58%, higher than that of coffee shops which was 53%.

By business, clothing stores had better chances of staying open for more than three years than cosmetics stores.

Among convenience stores and grocery shops, convenience stores had the higher survival rate.

Korea has about 5.6 million self-employed people, making up 20% of all employed workers.

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