8165.0 - Counts of Australian Businesses, including Entries and Exits, June 2014 to June 2018 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 21/02/2019   
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SUMMARY OF FINDINGS

At the end of 2017-18, there were 2,313,291 actively trading businesses in the market sector in Australia, an increase of 3.4% (74,992 businesses) from the end of 2016-17.

During this period, the rates of businesses entering the market sector in Australia (15.8%), and those exiting (12.5%), were higher than in the previous year (15.1% and 12.0%, respectively).


Graph Image for Australian Businesses



INDUSTRY DIVISIONS
    Key Findings
    • Construction (Division E) continues to be the industry with the largest number of businesses in Australia in 2017-18, accounting for 16.6% or 383,326 of all businesses.
    • One-third (33.7%) of the annual increase in businesses in Australia is due to growth in the Transport, Postal and Warehousing industry (Division I), which increased by 16.8% (25,247 businesses).
    • The Transport, Postal and Warehousing industry also had the highest rate for businesses entering (33.6%) the Australian economy in 2017-18.
    • The annual growth in Transport, Postal and Warehousing businesses during 2017-18 is driven by the following Industry Classes: ‘Taxi and Other Road Transport’, which increased 39.1% (9,899 businesses; Class 4623) and ‘Other Transport Support Services n.e.c.’, which increased 29.4% (11,801 businesses; Class 5299). Together, these Industry Classes account for 86% of the growth in Division I. This growth has continued since 2015 when legislation was passed requiring ride share drivers to register as businesses.
    • Two industry divisions showed an annual decrease in business counts in 2017-18:
      • Agriculture, Forestry and Fishing (Division A) showed the largest decrease from 2016-17 (down 0.9% or 1,634 businesses) as well as the lowest entry rate (7.2%) of businesses in 2017-18.
      • Mining (Division B) showed an annual decrease of 0.5% (37 businesses).


Graph Image for Australian Businesses by Industry Division

A - Agriculture, Forestry and Fishing; B - Mining; C - Manufacturing; D - Electricity, Gas, Water and Waste Services; E - Construction; F - Wholesale Trade; G - Retail Trade; H - Accommodation and Food Services; I - Transport, Postal and Warehousing; J - Information Media and Telecommunications; K - Financial and Insurance Services; L - Rental, Hiring and Real Estate Services; M - Professional, Scientific and Technical Services; N - Administrative and Support Services; O - Public Administration and Safety; P - Education and Training; Q - Health Care and Social Assistance; R - Arts and Recreation Services; S - Other Services



MAIN STATE OF OPERATION
    Key Findings
    • In 2017-18, almost two-thirds (60.6%) of all businesses in Australia were in New South Wales (NSW, 783,050 businesses) and Victoria (618,189 businesses).
    • Over this period, the number of businesses increased in all States and Territories (Main State); businesses in NSW (up 29,268 businesses) and Victoria (up 27,353 businesses) accounted for 75.5% of annual growth.
    • In 2017-18, the largest annual percentage increase was in Victoria (up 4.6%; or 27,353 businesses), followed by the Australian Capital Territory (ACT, up 4.3%; or 1,190 businesses) and NSW (up 3.9%; or 29,268 businesses).
    • Businesses in the ACT had both the highest entry (18.0%)and exit rates (13.4%) in 2017-18.
    • Businesses in Tasmania had both the lowest entry (11.8%) and exit (10.2%) rates in 2017-18.


Graph Image for Australian Businesses by State and Territory



INSTITUTIONAL SECTOR
    Key Findings
    • Of the 2,313,291 businesses operating at the end of 2017-18, Households continued to be the largest Institutional Sector (55.4%; 1,280,627 businesses).
    • During 2017-18, all Institutional Sectors recorded growth.
    • Financial Corporations (up 3.8%; or 7,215 businesses) showed the largest percentage increase over this period.
    • Households had the highest entry rate (16.3%) and exit rate (13.1%) in 2017-18.
    • Of those businesses operating at 30 June 2014, Financial Corporations had the highest survival rate (72.7%) at 30 June 2018.


Graph Image for Australian Businesses by Institutional Sector



TYPE OF LEGAL ORGANISATION
    Key Findings
    • Over one-third of all businesses in Australia are Companies (Total companies: 870,064 or 37.6%).
    • Sole Proprietor businesses showed the largest annual increase in number of businesses (up 7.3% or 42,841 businesses).
    • Both Partnerships (down 3.8%; or 10,230 businesses) and Public Sector businesses (down 4.6%; or 18 businesses) showed an annual decrease in 2017-18.
    • Sole Proprietor businesses had the highest entry (23.8%) and exit (16.5%) rates in 2017-18.
    • Of those businesses operating in June 2014, Trusts had the highest survival rate at 30 June 2018 (71.8%).


Graph Image for Australian Businesses by Type of Legal Organisation



EMPLOYMENT SIZE RANGES
    Key Findings
    • In 2017-18, almost two-thirds of businesses in Australia (62.1%; or 1,435,547 businesses) were non-employing. Non-employing businesses also had the largest increase (up 4.8%; or 65,496 businesses) in 2017-18.
    • Over one-third of all businesses in Australia in 2017-18 were employing (37.9%; or 877,744 businesses).
    • The most common employing businesses had between 1 and 4 employees (71.5%; or 627,932 businesses).
    • The least common employing businesses had 200 or more employees (0.4%; or 3,855 businesses).
    • Businesses with 1-4 employees showed the largest annual increase of all employing businesses (up 3.2% or 19,199 businesses).
    • Businesses in the larger employment size ranges all decreased. Businesses with 5-19 employees showed the largest decrease (down 3.8%, or 7,732 businesses).
    • During 2017-18, there was a net movement of businesses away from all employing size categories; 1-4 (-8,442), 5-19 (-4,895), 20-199 (-1,089) and 200+ (-12), to the Non-employing category (14,438).
    • In 2017-18, non-employing businesses had both the highest entry (19.0%) and exit (15.2%) rates, while businesses with 20-199 employees had both the lowest entry (2.2%) and exit (3.7%) rates.
    • Of those businesses operating in June 2014, non-employing businesses had the lowest survival rate at 30 June 2018 (59.6%); while businesses with 200+ employees had the highest survival rate (85.6%) at 30 June 2018.
    • In terms of survival, for businesses that entered the market sector during 2014-15, non-employing businesses had the lowest survival rate (50.6%), whilst businesses employing 200+ employees had the highest survival rate (73.9%).


Graph Image for Australian Businesses by Employment Size Range



ANNUAL TURNOVER SIZE RANGES
    Key Findings
    • Of the 2,313,291 actively trading businesses operating at the end of 2017-18, most (93.1% or 2,152,884) had annual turnover of less than $2m.
    • Businesses with annual turnover $2m to less than $5m had the largest annual percentage increase (5.3%) in 2017-18, while businesses with turnover of $50k to less than $200k had the smallest annual percentage increase (2.1%).
    • In 2017-18, businesses with turnover from $50k to less than $200k had the highest entry rate (20.6%) and businesses with less than $50k had the highest exit rate (19.4%).
    • During 2017-18, the largest net movement was away from businesses in the $50k to less than $200k turnover size range (-36,869).
    • Of those businesses operating in June 2014, survival rates at June 2018 generally increased with increasing annual turnover. The exception to this is businesses with turnover of $10m or more. The survival rate of these businesses (83.5%) is lower than for businesses with a turnover of $5m to $10m (84.2%).
    • For businesses that entered the market sector during 2014-15, businesses in the two lowest turnover size ranges (Zero to less than $50k and $50k to less than $200k) had the lowest survival rate (51.8%). Businesses with turnover of $5m to less than $10m had the highest survival rate (66.8%).

Graph Image for Australian Businesses by Turnover Size Range