Where are all the Start-Ups? The State of Small Business in Australia
Recently 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.
More by Victoria Taylor
There was general shock in the small business community when it was announced Bruce Billson would no longer be Minister for Small Business in Prime Minister Malcolm Turnbull’s new Cabinet. Universally regarded as a good Minister, Mr. Billson was replaced by Kelly O’Dwyer. One theory, put forward by the Council of Small Business of Australia, […]
Research in 2012 found that 51 percent of women who had started their own business needed an injection of capital to fund growth. No surprise, perhaps, when 41 percent of women surveyed had started their business with less than $5000. Accessing capital is not always easy when you’re a small business owner, and it seems […]
As business owners, we know the importance of having an online presence to build awareness and promote our products. The latest Sensis e-Business Report supports this, finding that 84% of small and medium businesses (SMEs) are online. But only 51% of SMEs are selling online. This seems a low figure when you consider: 95% of Australians […]
When Peter Strong, the CEO of the Council of Small Business Organisations of Australia, claimed big business and the unions do deals on industrial relations, he had a vocal ally in the Minister for Small Business, Bruce Billson. During his National Press Club speech, Mr. Strong inferred collusion on industrial rules that favoured big businesses, […]
With the end of financial year looming, we thought it is timely to remind you of the recent changes for small business announced in this year’s Federal Budget. Accelerated depreciation All small businesses are now eligible for an immediate tax deduction for any individual asset they buy costing less than $20,000. This $20,000 limit applies […]
It seems as though the government has released the majority of its small business budget initiatives in the lead up to tonight’s Budget. The Minister for Small Business, Bruce Billson, has labeled tonight’s Budget measures “the most substantial small business package this country has seen.” Initiatives will apparently focus on supporting entrepreneurs and early-stage businesses […]
Are penalty rates hampering your business growth? The Productivity Commission’s review into Australia’s workplace relations framework seems to have been dominated by this issue. Over Easter, businesses in the hospitality sector ran a campaign against penalty rates saying they made it unaffordable to stay open on public holidays. The Small Business Minister Bruce Billson also […]
Innovation is vital to the success of any business, no matter how big or small. The Culturing Success report launched by Microsoft this month found thousands of Australian small businesses are jeopardising their performance across total revenue, business efficiency, market share, staff satisfaction and customer loyalty, through a lack of innovation. Innovation is not to […]
Would paying your staff in equity, rather than a salary, during your start-up phase help you meet your business goals? Would providing staff a mix of salary and equity allow you to hire more employees during start-up phase? Employee Share Schemes are popular among start-ups, as they allow employees to acquire shares in the company, […]
The Sydney Morning Herald has declared the party’s over, as the mining boom comes to an end. Unemployment is high, the deficit is growing and commodity prices are falling. “They bungled the boom,” writes Peter Hartcher of successive federal governments. “Australia has truly squandered a unique opportunity, one that it has never enjoyed before and […]