More than a quarter of Atlantic startups that receive federal subsidies fail within five years, says a federal briefing note. The disclosure follows a 2020 audit that faulted the Atlantic Canada Opportunities Agency for failing to conduct risk assessments on companies applying for taxpayers’ aid.

“The business survival rate for Agency-assisted startups is 73 percent,” said the briefing note Atlantic Canada Opportunities Agency. Management said it compared favourably to a 33 percent survival rate “for unassisted firms after the crucial fifth year following startup.”

Subsidies averaged $230,135 in grants and loans per successful applicant, said the November 30 note. “On average each year the Agency assisted 971 businesses,” it said.