FORT WAYNE, Ind. (WOWO) — Entrepreneurs looking to launch a business may find some of the strongest odds of long-term survival in the Midwest, according to a new analysis that ranks Indiana, Ohio and Michigan among the top-performing states for keeping new businesses alive.

The study by ecommerce research firm Build Your Store examined U.S. Bureau of Labor Statistics Business Employment Dynamics data to determine which states have the highest percentage of new employer establishments still operating five years after opening.

Indiana ranked 11th nationally, with a five-year business survival rate of 53.6%. Ohio ranked seventh at 54.4%, while Michigan placed fifth with 54.7%.

The findings show the Midwest remains one of the strongest regions in the country for business durability, with several states outperforming larger commercial markets.

Indiana’s results showed that nearly 80% of businesses that opened recently survived their first year, with a one-year survival rate of 79.5%. The state also recorded a 38.5% survival rate after 10 years among businesses that opened in 2015.

The study examined more than 30,000 Indiana business openings from the 2018, 2019 and 2020 groups used for the five-year analysis.

Indiana’s neighboring states also performed well. Illinois ranked third nationally with a five-year survival rate of 55.2%, Michigan ranked fifth, and Ohio ranked seventh. Kentucky was the only neighboring state to rank below Indiana, placing tied for 13th with a 53% five-year survival rate.

Ohio businesses showed particularly strong results, with more than half of new establishments continuing operations after five years.

The Buckeye State recorded a 54.4% five-year survival rate, a 78.7% one-year survival rate and a 38.4% ten-year survival rate. The study included more than 51,000 Ohio establishments in its analysis.

Michigan ranked even higher, with 54.7% of businesses surviving at least five years.

The state’s one-year survival rate was 77.6%, while 35.7% of businesses from the 2015 opening group remained active after a decade. The Michigan results were based on more than 48,000 business openings.

Build Your Store said the results suggest strong business survival is not limited to coastal economic centers.

“West Virginia and Pennsylvania also show that strong business survival is not limited to the country’s largest commercial centers,” said Lior Pozin, co-founder and CEO of Build Your Store. “Both states outperform major markets such as California, Texas, New York and Florida when it comes to establishments remaining active for five years.”

Pozin said location can influence factors such as hiring, operating costs, logistics and access to business networks, but it does not guarantee success.

“These results should therefore be used as context rather than a guarantee,” Pozin said. “A high-ranking state cannot rescue a weak product, and a strong business can still succeed in a lower-ranking location.”

The study found Minnesota ranked first nationwide with a five-year business survival rate of 56.2%. West Virginia and Pennsylvania tied for second at 55.9%.

California, despite having the largest number of new business openings analyzed — more than 419,000 — ranked eighth with a five-year survival rate of 53.9%.

Researchers also highlighted Washington as an example of why early success does not always translate into long-term stability. The state had the highest one-year survival rate in the country at 82.5%, but the lowest five-year survival rate at 41.8%.

The analysis used pooled data from businesses that opened in 2018, 2019 and 2020, tracking whether those establishments remained active five years later. Researchers said combining multiple years helps reduce the impact of unusual conditions affecting any single opening period.

For Indiana business owners and entrepreneurs, the results place the state among the stronger environments nationally for building a company that lasts beyond the startup phase.

The study’s authors noted that while online businesses may reach customers nationwide, factors such as workforce availability, warehouse costs, fulfillment operations and local economic conditions can still make location an important consideration.