BUSINESS STATISTICS SNAPSHOT UPDATE April 2015 Australian Overview 1 Australian Businesses 1 The number of actively trading businesses in Australia was 2 100 162 at June 2014, increased by 1 per cent (20 496) from June 2013. Financial Year businesses at start businesses at end Change in number of businesses over year 2007-08 2 073 793 2 071 360-2 433 (-0.1%) 2008-09 2 071 360 2 050 642-20 718 (-1.0%) 2009-10 2 050 642 2 124 650 +74 008 (+3.6%) 2010-11 2 124 650 2 132 412 +7 762 (+0.4%) 2011-12 2 132 412 2 141 280 +8 868 (+0.4%) 2012-13 2 141 280 2 079 666-61 614 (-2.9%) 2013-14 2 079 666 2 100 162 20 496 (1%) For the 2013-14 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 2007-08 15.3% 15.4% 2008-09 14.4% 15.4% 2009-10 16.7% 13.1% 2010-11 13.9% 13.5% 2011-12 13.5% 13.1% 2012-13 11.2% 14.1% 2013-14 13.7% 12.7% For the 2013-14, 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 (338 225), the Professional, Scientific and Technical Services industries at 12 per cent (250 554), and the Rental, Hiring and Real Estate Services industries at 11 per cent (229 277). 1 Cat. No. 8165.0 Counts of Australian Businesses, including Entries and Exits, June 2010 June 2014, ABS, 2015
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 2009-10 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 2 124 650 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 2014. Of the 294 210 new business entered during 2010-11, 75.9% were still operating in June 2012, 59.3% were still operating in June 2013 and 50% were still operating in June 2014. 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 2013-14 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
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 2010. 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 = 299 123 Entries for June 2010 = 342 753 Entries for June 2011 = 294 210 Investigations by the ABS revealed that at a minimum, 21 000 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. 8165 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 131 741 of the total 2 079 666 businesses changing employment size categories for the 2012-13 financial year. The majority of this change was businesses moving from the: 20-199 range to the 5-19 range (33 863 businesses) 5-19 range to the 1-4 range (85 007 businesses) The new method had no impact on the number of Non-employing business.
Tasmanian Overview 1 Tasmanian Businesses 1 At the end of the financial year 2013-14 there was an estimated 37 484 businesses (all sizes) in Tasmania. This was 1 160 businesses (-3.0%) less than the previous year. Financial Year businesses at start businesses at end Change in number of businesses over year 2010-11 38 989 38 833-156 (-0.4%) 2011-12 38 833 38 636-197 (-0.5%) 2012-13 38 636 37 502-1 134 (-2.9%) 2013-14 37 502 37 043-459 (-1.2%) Tasmanian Business Survivors 1 Of the 37 502 Tasmanian businesses operating at the start of the 2013/14 financial year, 37 043 were still operating at the end of the year. This was a decrease of 459 business. Of the 38 989 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 4 372 new Tasmanian businesses that entered during 2010-11, 56.3% were still operating in June 2014.
Tasmanian Businesses by Employment Size Ranges June 2014 Large 200+ staff 57 (0.2%) Medium 20-199 staff 986 (2.7%) Small 1-19 staff 13 930 (37.6%) Non-employing 22 036 (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
Tasmanian Small Businesses Key Statistics 1 Key Statistics for Small Business in Tasmania June 2014 97% 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 50 3. Over a third of small business operators are women 3. Almost a quarter of all small business operators are born overseas 3. 59.5% 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. 8127.0 - Australian Small Business Operators Finding from the 2005 and 2006 Characteristics of Small Business Surveys, 2005-06, ABS, 2008 4 Cat. No. 8167.0 Selected Characteristics of Australian Business, 2011-12, ABS, 2013 5 Cat. No. 8129.0 - Business Use of Information Technology, ABS, 2011-12 6 Data was not available for Tasmania. 7 Hobart=SAL 601. Launceston=SAL 60201+60202. Burnie and Devonport=SAL 60401+60402. North East=SAL 60203. South East=SAL 603. West Coast=SAL 60403
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 5 847 5 706 98% Construction 5 595 5 523 99% Rental, Hiring and Real Estate Services 3 647 3 616 99% Professional, Scientific and Technical Services 3 299 3 239 98% Retail Trade 2 894 2 777 96% Financial and Insurance Services 2 474 2 453 99% Health Care and Social Assistance 2 123 2 041 96% Transport, Postal and Warehousing 2 068 2 021 98% Accommodation and Food Services 1 939 1 797 93% Manufacturing 1 628 1 500 92% Other Services 1 608 1 592 99% Wholesale Trade 1 024 975 95% Administrative and Support Services 988 926 94% Not Classified 518 512 99% Arts and Recreation Services 443 430 97% Education and Training 352 334 95% Information Media and Telecommunications 219 213 97% Mining 121 106 88% Public Administration and Safety 120 106 88% Electricity, Gas, Water and Waste Services 102 99 97% Total 37 009 35 966 97%