|Page tools: Print Page Print All|
BUSINESS MARKETS AND COMPETITION
Just over eight in every ten businesses sold goods or services within the Local area. Although in total, 9% of businesses sold their goods or services to Overseas markets (representing approximately 63,000 businesses), half of these businesses (approximately 30,000) employed 0-4 persons.
By industry, businesses in Mining were more likely to have sold goods or services to Overseas markets (26%), while those in Construction were lowest (2%).
Market share of businesses
Businesses were asked to assess their market share based on their perception of the market in which they operated. Guidance as to how businesses could make this assessment was not specified. Businesses could choose from three broad ranges.
The majority of businesses (64%) reported their market share as being Less than 10%. Businesses with 0-4 persons employed had the highest proportion of businesses reporting Less than 10% of market share (72%), as opposed to 36% of businesses with 200 or more employees.
At the industry level, 80% of businesses in Financial and Insurance Services reported having Less than 10% of market share. Businesses in Accommodation and Food Services were most likely to report a market share Greater than or equal to 10% and less than or equal to 50%. Market share of Greater than 50% ranged from 4% for Construction to 18% for businesses in Transport, Postal and Warehousing.
Main source of business income
Businesses were asked to identify their main source of income from the sales of goods and services during the year ended 30 June 2007. A list of sources was supplied, however, definitions for Large businesses or organisations and Small and/or medium businesses or organisations were not specified.
Just under half of all businesses reported the Australian General public as their main source of income, with Small and/or medium businesses or organisations within Australia as the second highest source of income (38%). Businesses in the 200 or more person employment group reported their main source of income being from Large businesses or organisations (44%).
Businesses in the Accommodation and Food Services industry were most likely to report the Australian
General public as their main source of income (86%). Overall, 2% of businesses reported Overseas sources as their main source of income. This was most prevalent for businesses in Mining (13%).
Reliance on clients, customers and buyers
Businesses were asked whether they relied on a small number of clients, customers or buyers to generate a significant proportion of their income. Definitions of what constitutes a small number of clients, customers or buyers and what is significant were not specified. Businesses that did have a reliance on a small number of clients, customers or buyers were then asked to indicate the potential impact of losing one of these.
Just under half of all businesses reported a reliance on a small number of clients, customers or buyers to generate a significant proportion of their income, with the proportion decreasing with each successive employment size range.
Of the businesses that reported relying on a small number of clients, customers or buyers, 44% indicated there would be a Moderate to large impact on business income if one of these clients was lost. An Extremely large impact was reported by 14% of businesses.
At the industry level, businesses in Construction were most likely to rely on a small number of clients, customers or buyers to generate a significant proportion of their income. Of these, 49% reported that they would have experienced Little or no impact on income if they lost one of those clients. Businesses within the Administrative and Support Services; and Electricity, Gas, Water and Waste Services industries were the most likely to experience an Extremely large impact on their income in the event of losing one of these clients.
The prospect of losing one of these clients would be more likely to have a Moderate to large impact on innovation-active businesses (50%) than non innovation-active businesses (40%).
Number of competitors
Businesses were asked to indicate the number of competitors they had during the year ended 30 June 2007. Guidance as to how businesses could make this assessment was not specified. Businesses could choose from three response options.
Almost three quarters of businesses reported having Three or more competitors. No effective competition was reported by 14% of all businesses and was most prevalent in businesses with 0-4 persons employed, at 18%, twice the proportion of large businesses.
Three or more competitors was the most common selection by businesses across all industries, ranging from 56% of businesses in Transport, Postal and Warehousing to 82% of businesses in Wholesale Trade. Businesses in the Manufacturing industry were most likely to report having One or two competitors (20%), compared to 6% of businesses in Financial and Insurance Services.
Non innovation-active businesses were more than twice as likely than innovation-active businesses to have operated in an environment with No effective competition.
Nature and size of competitors
Businesses that reported operating in a competitive environment were asked to identify the nature and size of their competitors. Businesses could identify multiple responses for each nature and size of competitors.
Similar in nature to this business means that the goods or services provided or the activity undertaken are similar. Different in nature to this business means that the goods or services provided or the activity undertaken include some similar goods, services or activities as part of a much wider range or a much smaller range. For example, if two retailers are both selling clothing only, then they are similar in nature. However, if one sells clothing only while the other is a department store, then they are different in nature.
Just over six in every ten businesses with at least one competitor, reported their competitors as being both
Similar in nature to the business and About the same size as the business. This combination of nature and size was the most commonly reported, followed by competitors Similar in nature and Larger than the business (52%) and competitors Different in nature to the business and Larger than the selected business (33%).
Similar in nature to the business and About the same size as the business was reported by 70% of businesses in the Accommodation and Food Services industry, the highest among all industries.
These documents will be presented in a new window.