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1307.8 - Australian Capital Territory in Focus, 2006  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 12/09/2006   
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Contents >> Business and Industry

BUSINESS AND INDUSTRY


COUNTS OF BUSINESSES

The Australian Bureau of Statistics uses an economic statistics units model on the Australian Bureau of Statistics Business Register (ABSBR) to describe the characteristics of businesses, and the structural relationships between related businesses.


Within large and diverse business groups, the units model is also used to define reporting units that can provide data to the ABS at suitable levels of detail. The units model can be used to produce counts of businesses from the ABSBR.

11.1 COUNTS OF BUSINESSES BY INDUSTRY, ACT - June 2004

Employment size range
0-19
20-199
200+
Total employing
Non-employing
Total
Industry
no.
no.
no.
no.
no.
no.

Agriculture, forestry and fishing
125
10
np
135
694
829
Mining
np
-
-
np
np
41
Manufacturing
356
np
np
408
939
1 347
Electricity, gas and water supply
np
np
np
np
np
34
Construction
1 313
np
np
1 376
5 993
7 369
Wholesale trade
273
np
np
313
447
760
Retail trade
1 365
np
np
1 621
1 709
3 330
Accommodation, cafes and restaurants
459
184
6
649
384
1 033
Transport and storage
244
19
-
263
1 460
1 723
Communication services
np
6
np
98
328
426
Finance and insurance
700
np
np
715
4 652
5 367
Property and business services
3 152
255
17
3 424
9 004
12 428
Education
107
16
-
123
801
924
Health and community services
799
82
6
887
1 280
2 167
Cultural and recreational services
232
np
np
287
1 357
1 644
Personal and other services
520
np
np
574
1 310
1 884
All industries
9 749
1 089
50
10 888
30 418
41 306

- nil or rounded to zero (including null cells)
np not available for publication but included in totals where applicable, unless otherwise indicated
Source: Australian Bureau of Statistics Business Register, Counts of Businesses, Summary Tables, June 2004 (cat. no. 8161.0.55.001).


At June 2004, there were 41,306 active business in the ACT on the ABSBR. Of these, 10,888 (26%) were employing businesses, and 30,418 (74%) were non-employing businesses. Nationally, there were 3,015,318 active businesses on the ABSBR, of which 28% were employing businesses and 72% were non-employing businesses.


In the ACT, Property and business services had the greatest number of employing businesses (3,424, or 31%), followed by Retail trade (1,621, or 15%) and Construction (1,376, or 13%). For non-employing businesses, the greatest number of businesses were in Property and business services (9,004, or 30%), Construction (5,993, or 20%) and Finance and insurance (4,652, or 15%).


The majority of employing businesses in the ACT (9,749, or 90%) had between 0 and 19 employees. Ten per cent (1,089 businesses) had 20 to 199 employees, and less than 1% (50 businesses) had 200 employees or more.



RETAIL TRADE

The total retail turnover in chain volume measures for the ACT in 2004-05 was $3,714.4m, which was similar to the 2003-04 figure ($3,691.7m). The Food retailing sector contributed the largest amount to the total turnover with $1,479.4m (40% of total turnover). This was followed by Household good retailing ($710.7m, or 19%) and Hospitality and service industries ($471.6m, or 13%).


The sector with the largest increase between 2003-04 and 2004-05, was Food retailing, up $59.4m. This increase was more than twice the amount of the second highest growth sector, Household good retailing, up $28.1m. The two sectors to record the largest falls over the same period were Hospitality and service industries down $56.1m, and Other retailing down $19.7m.


Over the last six years, since 1999-2000, the largest increase was recorded in the Household good retailing sector, up $407m. This was followed by the Food retailing sector, up $371.8m. The only decrease recorded in this period was in the Recreational good retailing sector, down $25.6m.

11.2 RETAIL TURNOVER, Chain volume measures ($m) - ACT

1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05

Food retailing
1 174.0
1 301.3
1 428.8
1 412.9
1 420.0
1 479.4
Department stores
332.2
317.5
331.1
344.0
350.7
346.3
Clothing and soft good retailing
161.9
176.1
206.9
207.4
212.5
230.4
Household good retailing
415.3
412.0
490.6
577.7
682.6
710.7
Recreational good retailing
238.3
209.5
172.1
184.3
181.0
178.6
Other retailing
288.9
349.6
349.9
308.4
317.2
297.5
Hospitality and service industries
416.3
489.8
523.6
567.0
527.7
471.6
Total(a)
3 020.6
3 234.5
3 489.2
3 595.8
3 691.7
3 714.4

(a) Generally, chain volume measures are not additive. In order to minimise the impact of this property, the ABS uses the latest base year as the reference year. By adopting this approach, additivity exists for the reference year and the year after, and non-additivity is relatively small for the years immediately preceding the reference year.
Source: Data available on request, Retail Business Survey.



BANKRUPTCIES

Business bankruptcies

A business bankruptcy is where an individual's bankruptcy is directly related to their ownership of a business.


In 2004-05, there were 75 business related bankruptcies in the ACT, a decrease of 15% from 2003-04 (88). This continues the general downward trend of business bankruptcies in the ACT, since the peak of 166 bankruptcies in 1999-2000.

11.3 TOTAL BUSINESS BANKRUPTCIES, ACT
Graph: 11.3 Total business bankruptcies, ACT



The highest recorded causes of business bankruptcies in the ACT during 2004-05 were personal reasons (including ill health) and excessive drawings, each accounting for 20% of all business bankruptcies. These were followed by economic conditions (18%) and lack of business ability (12%). There were no business bankruptcies attributed to seasonal conditions in 2004-05.

11.4 CAUSES OF BUSINESS BANKRUPTCIES - ACT

2002-03
2003-04
2004-05
no.
%
no.
%
no.
%

Economic conditions
36
32
25
28
14
18
Lack of capital
12
11
14
16
6
8
Lack of business ability
3
3
8
9
9
12
Excessive drawings
11
10
12
14
15
20
Inability to collect debts
3
3
1
1
1
1
Excessive interest
5
4
-
-
2
3
Failure to keep proper books
4
4
4
5
5
7
Seasonal conditions
-
-
1
1
-
-
Gambling or speculations
2
2
-
-
3
4
Other reasons (incl. not stated)
7
6
5
6
5
7
Personal reasons (incl. ill health)
29
26
18
20
15
20
Total
112
100
88
100
75
100

- nil or rounded to zero (including null cells)
Source: Australian Government, Insolvency and Trustee Service Australia, Annual Report 2002-03, 2003-04, 2004-05.


Non-business bankruptcies

Non-business bankruptcies refer to bankruptcies where an individual's occupation and cause of bankruptcy are not related to any ownership of a business.


There were 721 non-business bankruptcies in the ACT during 2004-05, an increase of 39% on 2003-04 (517). This was the highest number of non-business bankruptcies recorded over the past 6 years.

11.5 TOTAL NON-BUSINESS BANKRUPTCIES, ACT
Graph: 11.5 Total non-business bankruptcies, ACT



The most recorded cause of non-business bankruptcies in the ACT during 2004-05 was unemployment, accounting for 44% (317 bankruptcies) of all non-business bankruptcies. The second highest cause of non-business bankruptcies was excessive use of credit (29%), followed by adverse litigation (10%).

11.6 CAUSES OF NON-BUSINESS BANKRUPTCIES, ACT

2002-03
2003-04
2004-05
no.
%
no.
%
no.
%

Unemployment
272
47
252
49
317
44
Excessive use of credit
98
17
101
20
208
29
Domestic discord
104
18
68
13
6
1
Ill health
47
8
39
8
28
4
Adverse litigation
28
5
27
5
73
10
Gambling or speculations
19
3
13
3
22
3
Liabilities on guarantees
10
2
14
3
56
8
Other causes or not stated
3
1
3
1
11
1
Total
581
100
517
100
721
100

Source: Australian Government, Insolvency and Trustee Service Australia, Annual Report 2002-03, 2003-04, 2004-05.



INFORMATION TECHNOLOGY

Business use of IT

During 2004-05, 92% of businesses in the ACT used computers, while 84% used the Internet and 28% had a web presence. These were all increases on 2003-04 when 89% of businesses used computers, 78% used the Internet and 21% had a web presence.


At the national level during 2004-05, 89% of businesses used computers, while 77% and 27% used the Internet and had a web presence, respectively.



INNOVATION IN BUSINESS

Innovation has been defined as the process of introducing new or significantly improved goods or services and/or implementing new or significantly improved processes:

  • A new good or service means any good or service or combination of these which is new to a business. Its characteristics or intended uses differ significantly from those previously used.
  • A new operational process is a significant change for a business in its methods of producing or delivering goods or services.
  • A new organisational/managerial process is a significant change to the strategies, structures or routines of the business which aim to improve performance.

Between 2001 and 2003, of the 2,339 businesses surveyed in the ACT, 29% (680 businesses) were innovating. This was comparable with the Northern Territory (28%) and Tasmania (27%). The most popular type of innovation in business in the ACT was new or significantly improved operational processes (22% of innovating businesses).


Drivers of innovation

Drivers relating to innovation were split into two groups: those relating to new goods and services; and those relating to new processes. Each group was further split into three categories: market related drivers; profit related drivers; and legal related drivers. Businesses were able to identify more than one driver.


Drivers relating to new goods and services

The highest single driver relating to new goods and services in the ACT was in the profit related category, with an increase in revenue driving change for 71% of innovating businesses. This was the highest proportion of all states and territories for this driver. Nationally, the proportion was 61%.


The second highest driver in the ACT was in the market category, with an increase in market share driving 59% of innovating businesses. Again, the ACT recorded the highest proportion of all states and territories for this driver and was also above the national proportion of 45%.

11.7 DRIVERS RELATING TO NEW GOODS AND SERVICES, 2001-03
Graph: 11.7 Drivers relating to new goods and services, 2001–03



Increase responsiveness to customer needs was the second highest driver in the market related category, and the third highest driver overall in the ACT (55%). The national proportion was 48%.


Drivers relating to new processes

The biggest driver relating to new processes among innovating ACT businesses was improving productivity (73%), in the profit related category. This was comparable with the leading state (with Queensland recording 75%) while the third highest was Western Australia (62%). Nationally, the proportion was 58%.


Reducing costs was the second highest driver (again, in the profit related category) reported by innovating businesses in the ACT (72%). The only state or territory to record a higher proportion was Tasmania (78%). The national proportion was 58%.


The third highest reported driver relating to new processes was increase responsiveness to customer needs, driving 59% of innovating businesses in the ACT. This was second only to Tasmania (67%) and comparable with Queensland (57%). Nationally, the proportion was 47%.


Sources of ideas and information

Innovating businesses were asked to identify key sources of ideas or information, and which methods were used to acquire knowledge or abilities. Businesses could select more than one source or method.


Ideas from within individual businesses was the highest reported source of ideas or information for innovating ACT businesses (80%), which was the same as the national proportion. The highest proportion of the states and territories for this source was the Northern Territory (91%) and the lowest was New South Wales (75%).


Clients or customers was the second highest reported source of ideas or information for innovating ACT businesses (66%). This was comparable with the national proportion of 65%. Across states and territories, the proportions for this source ranged from 69% for South Australia to 61% for the Northern Territory.


More innovating businesses in the ACT (49%) sourced ideas or information from consultants than any other state or territory. Victoria was second highest (37%) and the national proportion was 32%.



BIBLIOGRAPHY


ABS

ABS Business Register, Counts of Businesses, Summary Tables, June 2004, cat. no. 8161.0.55.001.


Business use of Information Technology, 2004-05, cat. no. 8129.0.


Innovation in Australian Business, 2003 (Re-issue), cat. no. 8158.0.


Retail Business Survey, Data available on request.



NON-ABS

Australian Government, Insolvency and Trustee Service Australia, Annual Reports, 1998-99 to 2004-05, last viewed 10 August 2006,
<http://www.itsa.gov.au/>.


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