Sustainability of businesses: Only 53.8% of structures last more than 5 years

Out of 100 companies created, 86.6% make it through the first year, but only 53.8% last more than 5 years. This data came from the results of the National Survey on Business Demography (Endes) carried out by the National Agency for Statistics and Demography (Ansd) between March 10 and July 10, 2025.

Between 2018 and 2024, 86.6% of newly created businesses survive their first year of operation. An encouraging rate, which shows real initial resilience. However, after 5 years, only 53.8% are still active. Nearly half disappear before even entering the market. This data emerged from the workshop to share the results of the National Survey on Business Demography (Endes) conducted by the National Agency for Statistics and Demography (Ansd).

Between early mortality and sustained creation, the sector faces challenges that persist over the years. This mainly concerns access to financing, which indicates more than a lack of knowledge of existing financial mechanisms. According to the data, closures are most concentrated between 2019 and 2021, with a dramatic peak in 2020 (25.3%), followed by 2021 (15.5%). 34.6% of closures are due to difficulties accessing financing, 31.2% to a loss of market and 27.1% to the Covid-19 pandemic. This is followed by the non-conducive environment (10.4%) and high debt (9.9%).

The same survey indicates that most business creators have achieved a higher level of education. But, the fact remains that there is a real challenge in controlling the business ecosystem with often questionable strategic choices.
The Survey highlights that certain sectors are particularly vulnerable. These include, among others, transport and telecommunications which showed a closure rate of 39.7% at launch, followed by hotels-bars-restaurants (27.4%) and food industries (25.3%). Conversely, the textile industries (including sewing) are the strongest with only 4.2% of early closures. From a growth point of view, the entrepreneurial fabric is dominated by very small businesses (VSE). They represent 98.84% of active units in 2024. Finally, 96.4% of companies are pure creations, reflecting a strong culture of individual initiative.

During the presentation of the results of Endes, Dr Abdou Diouf, Director General of Ansd, indicated that having data on the creation, survival, growth, transmission and cessation of economic activities of companies is of paramount importance. “Business demographics are an essential indicator of the vitality of our productive fabric. It sheds light on entrepreneurial dynamics, the capacity for innovation, job creation and the resilience of our economy in the face of shocks,” he stressed. Mr. Diouf believes that this survey thus “fills a major statistical gap” which, until now, did not provide any clarity on business demographics.

In the same vein, Bakary Sega Bathily, general director of Apix, translated these figures into prospects for concrete actions. He believes that business demography constitutes a strategic instrument for identifying structural constraints to growth, guiding business climate reforms and strengthening the role of the private sector in the structural transformation of the Senegalese economy.

Assane FALL