Where are all the Start-Ups? The State of Small Business in Australia
Last month the Australian Bureau of Statistics released data showing the number of business in Australia remains effectively static, with no real growth since 2008.
New businesses were established in 2011-12, however the start-up rate was only 0.1% higher than the exit rate.
This meant an additional 8,868 businesses were established in the year to June 2012, taking the total number of actively trading businesses in Australia at that time to 2.14 million.
A whopping 96% of those active businesses were small businesses.
Compare these figures to the 299,123 new business entries during 2008–09 contributing to the total of 2.07 million businesses operating in June 2008 and the stagnation becomes clearly evident.
Business survival rates showed almost 76% of those businesses operating in June 2008, were still operating two years later, but only 51% were still operating in June 2012.
Perhaps unsurprisingly, the exit rates were highest for businesses in the 'zero to less than $50k' turnover range and while those businesses in the '$2m or more' turnover range, had the lowest exit rates.
It’s obviously really tough for many smaller businesses at the moment and these indicators should worry all policy makers.
We are told small business is the engine room of our economy so with stagnant growth there is neither the activity nor jobs to stimulate growth.
To start a business in this environment you need great advice, support and spirit.
I encourage you to check out our StartUp Month resources which are designed to help all new and emerging business avoid the pit-falls that hamper business growth.
If you’re interested, the full ABS statistics can be viewed here.
This post is part of...
Startup Month 2013
How I Got Started – Powerful Stories and Insights from Inspiring Entrepreneurs
Life as a startup can be a roller-coaster ride. That’s why at the Australian Businesswomen's Network, we do our best to help women new to business gain access to good information, education and role models. From 20 May to 16 June 2013, we'll be sharing stories from inspiring businesswomen to help other women just starting out in business.
More by Victoria Taylor
When you went in to business, did you think about when you will retire? During a recent ABN webinar on finance for women we asked participants at what age they expect to retire. A third of women answered at 55 – 65, which is probably considered the normal retirement age. The largest response was 40%, who [...]
The federal government has done a deal to freeze increases in compulsory superannuation contributions. The media is reporting that the changes were part of a deal to secure the scrapping of the mining tax with Clive Palmer’s party. Under the previous schedule, the 9.5% compulsory superannuation rate was to increase to 10% on July 1, [...]
Are you one of the 100,000 people who have rung the Small Business Helpline? The federal government says, that since its establishment in December last year 100,000 small business operators had rung the helpline seeking information on wages, awards and conditions of employment under the Fair Work Act. The majority of callers were from the [...]
Are you a small business owner that has been subject to unfair terms in business contracts? The legal protections for small business against unfair and unconscionable conduct are being considered as part of the Federal Government’s Competition Policy Review. In particular, the government is looking at standard form (or pre-prepared) contracts, which are usually offered [...]
The Abbott Government has released its first Federal Budget and while the media this morning is focusing on the cuts to health and education and increased taxes, what does the budget mean for small business? Here’s what we know so far: Overall, commentators seem to agree that the Budget is attempting to set the Australian [...]
The Australian government has announced a review of the tax impediments facing small business. To be undertaken by the Board of Taxation, the review will identify features of the tax system that prevent small business reaching their commercial goals. Specifically, the Board of Taxation will determine: Business and the broader community’s perspectives on issues [...]
Australian business conditions slumped in February, reversing about half of their gains since the federal election in September. After rising to almost three-year highs at the start of the year, weaker sales and the soft jobs market impacted conditions, but business confidence still remained slightly above trend levels in February. Further, the latest Servcorp Australian [...]
How are you going to grow your business this year? Have you ever thought about exporting your products or services? Research shows that, on average, exporting companies are more profitable than their non-exporting counterparts. “Exporting exposes you to new ideas, management practices, marketing techniques, and ways of competing that you wouldn’t have experienced by staying [...]
In the frantic rush to prepare for Christmas, you may have missed that the Abbott government passed 100 days in office, in mid-December. The first 100 days is a fairly meaningless milestone in many respects, particularly in terms of real policy outcomes. But it serves as a useful measure for judging the government’s commitment and [...]
Entrepreneur or small business owner? Which one are you? Are you both? Apparently they are not the same thing. Reading Rose Powell’s article on StartUp Smart, on the 2013 Amway Global Entrepreneur Report I wasn’t surprised to discover that 84% of Australians surveyed had a positive sentiment towards entrepreneurship. This is 14% higher than [...]