Australian Bureau of Statistics

Rate the ABS website
ABS Home > Statistics > By Release Date
ABS @ Facebook ABS @ Twitter ABS RSS ABS Email notification service
8167.0 - Selected Characteristics of Australian Business, 2007-08 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 17/09/2009   
   Page tools: Print Print Page Print all pages in this productPrint All RSS Feed RSS Bookmark and Share Search this Product

BARRIERS TO BUSINESS ACTIVITIES OR PERFORMANCE



All businesses were asked to identify factors which significantly hampered the development or introduction of new or significantly improved goods, services, operational or organisational/managerial processes or marketing methods (i.e. innovation related activities) and factors which significantly hampered core business activities or performance (i.e. those not related to innovation). For the purpose of this release, these factors are referred to as 'barriers to innovation' and 'barriers to core business activities or performance' respectively.

It should be noted that businesses were not provided with a definition of what constitutes a significant level of hampering and were not asked to rank barriers in order of significance.


Barriers to innovation

Barriers to innovation(a)(b)(c), by employment size, 2007 - 08

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Lack of access to additional funds
16.0
16.7
14.7
8.6
16.0
Cost of development or introduction/implementation
9.8
12.5
12.5
9.8
10.8
Lack of skilled persons:
within the business
11.7
19.7
22.0
12.6
14.8
within the labour market
11.9
23.8
27.4
21.3
16.6
in any location(d)
18.0
31.0
34.2
24.4
23.0
Lack of access to knowledge or technology
3.2
2.9
4.2
2.5
3.2
Government regulations or compliance
8.9
13.5
14.0
8.6
10.6
Uncertain demands for new goods or services
10.5
13.3
9.1
9.6
11.2
Other barriers to innovation
2.5
2.9
2.3
4.7
2.6
Any barrier to innovation
39.1
52.3
50.7
40.0
43.7
No barriers to innovation
60.9
47.7
49.3
60.0
56.3

(a) Proportions are of all businesses in each employment size category.
(b) Barriers to innovation are those factors which significantly hampered the development of introduction of any new or significantly improved goods, services, processes or methods.
(c) Businesses could identify more than one barrier and were not asked to rank barriers in order of significance.
(d) Includes businesses that reported lack of skilled persons within the business and/or within the labour market.


Overall 44% of businesses reported at least one barrier to innovation, with the most commonly reported barrier being lack of skilled persons within the labour market. The highest proportion of businesses whose innovative activity was hampered by this barrier were those employing 20-199 persons (27%), which was over double the proportion of businesses with 0-4 persons employed.

Over half of businesses in Manufacturing, Wholesale trade and Other services reported some barrier to innovation. By contrast, 66% of businesses in Rental, hiring and real estate services reported no barriers to innovation.


Barriers to core business activities or performance

Barriers to core business activities or performance(a)(b), by employment size, 2007 - 08

0-4 persons
5-19 persons
20-199 persons
200 or more persons
Total
%
%
%
%
%

Lack of access to additional funds
12.5
14.3
11.8
7.0
12.9
Cost of inputs
9.3
16.3
13.7
14.0
11.6
Outstanding accounts receivable limiting cash flow
12.2
16.1
14.1
3.9
13.4
Lack of skilled persons:
within the business
8.7
16.8
20.4
14.2
11.9
within the labour market
10.7
23.9
27.9
24.0
15.9
in any location(c)
15.2
29.0
34.6
28.1
20.7
Government regulations or compliance
9.0
13.4
14.3
8.3
10.6
Lack of customer demand for goods or services
14.3
14.7
12.6
6.6
14.3
Lower profit margins to remain competitive
19.4
27.1
20.7
14.3
21.6
Environmental factors(d)
5.7
6.7
7.7
6.7
6.2
Other barriers
1.8
1.9
2.1
1.7
1.9
Any barriers to core business activities or performance
49.0
61.2
59.2
47.8
53.3
No barriers to core business activities or performance
51.0
38.8
40.9
52.2
46.7

(a) Proportions are of all businesses in each employment size category.
(b) Businesses could identify more than one barrier and were not asked to rank barriers in order of significance.
(c) Includes businesses that reported lack of skilled persons within the business and/or within the labour market.
(d) Examples of environmental factors include drought, insect plague and compliance with water restrictions.


At least one barrier to core business activities or performance was reported by over half of all businesses. The most reported factor hampering core business activities or performance was lower profit margins to remain competitive (22%), however, this was not the case across all employment size ranges. Lack of skilled persons within the labour market was the most commonly reported factor significantly hampering core business activities or performance for businesses employing 20-199 persons and 200 or more persons.

At the industry level, 60% or more of businesses in the Manufacturing, Wholesale trade, Retail trade and Other services reported barriers that significantly hampered core business activities or performance. Environmental factors were reported as hampering 11% of businesses in Mining, Retail trade and Arts and recreation services.

Bookmark and Share. Opens in a new window

Commonwealth of Australia 2014

Unless otherwise noted, content on this website is licensed under a Creative Commons Attribution 2.5 Australia Licence together with any terms, conditions and exclusions as set out in the website Copyright notice. For permission to do anything beyond the scope of this licence and copyright terms contact us.