BUSINESS STATISTICS SNAPSHOT UPDATE April 2015

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1 BUSINESS STATISTICS SNAPSHOT UPDATE April 2015 Australian Overview 1 Australian Businesses 1 The number of actively trading businesses in Australia was at June 2014, increased by 1 per cent (20 496) from June Financial Year businesses at start businesses at end Change in number of businesses over year (-0.1%) (-1.0%) (+3.6%) (+0.4%) (+0.4%) (-2.9%) (1%) For the financial year, the entry rate (13.7 per cent) of businesses was higher than the exit rate (12.7 per cent). This resulted in a 1 per cent increase of overall number of businesses. Financial Year Entry of new businesses Exit of businesses % 15.4% % 15.4% % 13.1% % 13.5% % 13.1% % 14.1% % 12.7% For the , seven states and territories recorded an increase in the number of businesses. The largest increase in businesses for a single state was in New South Wales (8 522) followed by Victoria (7 160). Tasmania was the only state that recorded a decrease in the number of businesses (-459). At June 2014, the top three industry division with the highest number of businesses operating in Australia were: the Construction industry at 16 per cent of all businesses ( ), the Professional, Scientific and Technical Services industries at 12 per cent ( ), and the Rental, Hiring and Real Estate Services industries at 11 per cent ( ). 1 Cat. No Counts of Australian Businesses, including Entries and Exits, June 2010 June 2014, ABS, 2015

2 Australian Business Survivors 12 Of those businesses operating in June 2010, the survival rate at June 2014 was the highest in Tasmania (65%) and South Australia (64.7%) and the lowest was in Australian Capital Territory (58.9%) and Queensland (59.4%). The survival rate for the new businesses that entered during was the highest in Tasmania (56.3%) and was the lowest in Australian Capital Territory (45.7%). The survival rates for new businesses were lower than for those businesses that were already established. Of the businesses operating in June 2010, 86.5% were still operating in June 2011, 76.7% were still operating in June 2012, 68.3% were still operating in June 2013 and 61.7% in June Of the new business entered during , 75.9% were still operating in June 2012, 59.3% were still operating in June 2013 and 50% were still operating in June Business survival rates were heavily influenced by the size of the business. Non-employing businesses had a significantly lower survival rate (55.9%) compared to total employing businesses (70.9%). Australian Business Operation by Main State 1 At June 2014, the proportion of businesses by state was broadly aligned with the proportion of Australia s population by State. New South Wales and Victoria were the only states which contained a higher proportion of businesses than people. For the smaller states, the proportion of the population continued to outweigh the proportion of businesses. Tasmania had 2.2% of the population and 1.8% of businesses. During Australian Capital Territory (14.9%), Northern Territory (14.6%) and Western Australia (14.1%) experienced the top three highest entry rates, Tasmania had the lowest entry rate at 10.2%. Exit rates were the highest for the Northern Territory (14.4%), the Australian Capital Territory (13.7%), and Queensland (13.4%), while Tasmania (11.4%) and South Australia (11.4%) recorded the lowest exit rates. Australian Small Business 1 The vast majority (97 per cent) of Australian businesses were small businesses. Over two million employed less than 20 staff (including 1.3 million, 61 per cent who do not employ any staff). Close to two million businesses had an annual turnover of less than $2 million (94 per cent). 2 Business survivors are businesses which were actively trading in one year and continued to be trading in the following year

3 DATA NOTE in January 2012 release Business Numbers Rise The scope of business counts was limited to businesses actively remitting in a GST role. ABS had implemented a new methodology for counting businesses. Prior to June 2010, businesses who had not submitted a Business Activity Statement for five consecutive quarters were excluded from the counts. From June 2010, the ABS had increased this time period to three consecutive years. This administrative change had resulted in a noticeable and identifiable increase in the business counts at June It had led to an increase in business entries. Those businesses that would have previously been excluded have been brought back into scope and therefore appear as business entries. Effects of the scope change Entries for June 2009 = Entries for June 2010 = Entries for June 2011 = Investigations by the ABS revealed that at a minimum, of the June 2010 entries can be attributed to the new methodology, and the majority was clustered in the non-employing size category. TECHNICAL NOTE in the March 2014 release Improved Employment Range Prior to the March 2014 cat. no release, business size ranges were the estimated a cumulative total number of people employed by a business throughout a given year. If there was any turnover of employees during the year, business size would be overstated. The new method estimated an average number of employees over the reference year. The revised method resulted in of the total businesses changing employment size categories for the financial year. The majority of this change was businesses moving from the: range to the 5-19 range ( businesses) 5-19 range to the 1-4 range ( businesses) The new method had no impact on the number of Non-employing business.

4 Tasmanian Overview 1 Tasmanian Businesses 1 At the end of the financial year there was an estimated businesses (all sizes) in Tasmania. This was businesses (-3.0%) less than the previous year. Financial Year businesses at start businesses at end Change in number of businesses over year (-0.4%) (-0.5%) (-2.9%) (-1.2%) Tasmanian Business Survivors 1 Of the Tasmanian businesses operating at the start of the 2013/14 financial year, were still operating at the end of the year. This was a decrease of 459 business. Of the Tasmanian businesses operating in June 2010, 88.4% were still operating in June 2011, 79.6% were still operating in June 2012, 71.7% were still operating in June 2013, and 65.0% were still operating in June 2014 (this compares with 61.7% for all of Australia). Of the new Tasmanian businesses that entered during , 56.3% were still operating in June 2014.

5 Tasmanian Businesses by Employment Size Ranges June 2014 Large 200+ staff 57 (0.2%) Medium staff 986 (2.7%) Small 1-19 staff (37.6%) Non-employing (59.5%) Tasmanian Small Businesses Characteristics business with less than 20 employees independently owned and operated control over operations decisions held by the owners frequently family-based and or home-based

6 Tasmanian Small Businesses Key Statistics 1 Key Statistics for Small Business in Tasmania June % of all businesses are small businesses. Small businesses employ about 50% of labour force. 78% of small business are located in Hobart, Launceston, Burnie & Devonport. Almost one third of small business operators are aged over Over a third of small business operators are women 3. Almost a quarter of all small business operators are born overseas % of small business are non-employing. One third work part-time 3. 39% of small businesses are in exporting industries 46. Almost 40% of small businesses are operated from homes 3. 92% of small business owners operate one business (8% have multiple small businesses) 3. Around 92% of small businesses in Australia have broadband access 56. Tasmanian Small Businesses by Regions 17 West Coast 5% North East 9% South East 8% Burnie and Devonport 16% Hobart 40% Launceston 22% 3 Cat. No Australian Small Business Operators Finding from the 2005 and 2006 Characteristics of Small Business Surveys, , ABS, Cat. No Selected Characteristics of Australian Business, , ABS, Cat. No Business Use of Information Technology, ABS, Data was not available for Tasmania. 7 Hobart=SAL 601. Launceston=SAL Burnie and Devonport=SAL North East=SAL South East=SAL 603. West Coast=SAL 60403

7 Tasmanian Small Businesses by Industries Division Tasmanian businesses by industry division, June 2014 Industry Division Total businesses Small businesses l Small businesses as % of total Agriculture, Forestry and Fishing % Construction % Rental, Hiring and Real Estate Services % Professional, Scientific and Technical Services % Retail Trade % Financial and Insurance Services % Health Care and Social Assistance % Transport, Postal and Warehousing % Accommodation and Food Services % Manufacturing % Other Services % Wholesale Trade % Administrative and Support Services % Not Classified % Arts and Recreation Services % Education and Training % Information Media and Telecommunications % Mining % Public Administration and Safety % Electricity, Gas, Water and Waste Services % Total %

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