herBusiness - The Australian Businesswomen's Network Blog
herBusiness - The Australian Businesswomen's Network Blog

Where are all the Start-Ups? The State of Small Business in Australia

By Victoria Taylor

16 June 2013 | No Comments

start-up small business owner in AustraliaRecently released statistics may point to an on-going impact of the Global Financial Crisis 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.

Learn more about Startup Month and read our featured stories here.

Victoria Taylor, Flourish Communication

Blogger

Victoria Taylor, Flourish Communication

Victoria Taylor

Victoria Taylor is the Director of Flourish Communication, a Canberra based business providing strategic communications, government relations and policy advice to clients involved in primary industries and natural resource management. Having spent many years as a political adviser and industry lo...


Read more about Victoria Taylor

No Comments »

No comments yet.


RSS feed for comments on this post.

Leave a Comment

Related Content

Do Client Testimonials Work? How to Turn Website Visitors into Customers

By Helen Ward

Are testimonials effective, believable, credible and powerful? Do they help market you and your brand? Or are they ignored, just a waste of space and do they in fact detract from your brand?   Are you a believer in testimonials? Believers say testimonials can multiply profits and get customers selling for you! Detractors argue they [...]

Read More

Startup Month: Ideas, Resources and Inspiration for Your New Business

Startup Month: Ideas, Resources and Inspiration for Your New Business

Because life as a startup can be a roller-coaster ride, 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, the Australian Businesswomen's Network website and blog will highlight the stories of great Aussie startups and provide free tools [...]

Read More

Australia's Politicians Share Their Small Business Stories

By Victoria Taylor

Which Federal Member of Parliament became a small business owner on their wedding day? Which Senator ran a business with their mother before entering politics? We can often forget that politicians had lives and careers before entering Parliament. Some of these careers included owning or working in small business. And since politicians will bring the [...]

Read More

Jodie Fox’s love for shoes and technology lead to the breakthrough online business Shoes of Prey

By Jodie Fox

Jodie Fox has helped answer that often-asked question, “What shoes do I wear?” with her business Shoes Of Prey, an online retail store that allows women to design their own shoes. “We believe that every woman should have her perfect shoe. “I created a business with my two co-founders Mike Knapp and Michael Fox in [...]

Read More

Learn Small Business Startup in 7 Days: How to Launch a Lean, Efficient Startup

Interview with Heather Smith

Heather smith, a sought after small business expert who provides education and support to help small businesses maximise their productivity and profitability, shares tips from her book "Learn Small Business Start-Up in 7 Days.”   In this interview, Heather shares the essentials to launching a successful small business startup. She tells us: why she wrote [...]

Read More