Business Survival in the Construction Industry in Relation to Other Businesses: A Comparative Analysis

Abstract

The construction industry is one of the largest industry in the United States; it employs close to seven million people and contributes the most to the growth of the country’s economy. In spite of the huge impact that the industry has on the US economy, construction businesses have a hard time surviving in the market, with construction companies having the lowest survival rate among all the industries. Only 36.4% of new construction companies had survived in the past 5 years since 2012. This study aims at providing evidence that the construction industry suffers the most as compared to the other industries in terms of business survival rate. The statistical techniques used are Chi-Square test for independence and a General Linear Model. Results show a significant difference between the construction industry and other industries, proving that the construction industry businesses have the lowest survival rate.