Despite the high costs of starting a business, Illinois beats most states when it comes to five-year survival rates for new businesses.

The study, conducted by Bookipi, a billing software company, determined how many new businesses were created in each state in 2018 using data from the U.S. Bureau of Labor Statistics. The study then analyzed how many of those businesses remained in business in 2023.

Compared to other states, Illinois has the eighth-highest five-year survival rate.

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Of the 22,145 Illinois businesses founded in 2018, the study found that 55.07% — or 12,195 businesses — remained in business five years later. But according to the same study, employment at those establishments fell by 1,045 people over the same five-year period, “indicating that some businesses may have had to lay off workers to survive.”

States that overtook Illinois in the study include:

1. Montana: 57.63%

2. Minnesota: 57.61%

3. Alaska: 57.32%

4. West Virginia: 57.08%

5. Massachusetts: 56.68%

6. Virginia: 56.52%

7. South Dakota: 56.08%

“According to the U.S. Bureau of Labor Statistics, about 45% of new businesses fail within the first five years, making the success rates in states like Montana, Minnesota and Alaska particularly impressive,” said Tim Lee, CEO and founder of Bookipi Group.

“Entrepreneurs looking for a promising start should consider those states where the probability of success is much higher.”

Illinois’ neighbor Missouri, meanwhile, ranked lowest, with a survival rate of 44.55% from 2018 to 2023. However, the state also saw an increase in employment at surviving businesses.

The study notes, “This 3.02% increase may indicate that Missouri businesses are prioritizing quality over quantity.”

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This article originally appeared in the Journal Star: Illinois has the eighth-highest five-year survival rate for new businesses