BUSINESS FINANCE


Business finance sought

All businesses were asked if they sought any debt and/or equity finance during the year ended 30 June 2015. If finance was sought, the business was also asked to identify the type and status of finance sought (i.e. whether it had been obtained, not obtained or was still in progress). For the purposes of the Business Characteristics Survey (BCS), debt finance includes any finance the business must repay, and equity finance includes finance provided in exchange for a share in the ownership of the business. Businesses could report more than one type of finance and more than one type of status.

Business finance sought, by employment size, by type and status(a), 2014-15
		0-4 persons	5-19 persons	20-199 persons	200 or more persons	Total
		%	%	%	%	%
Businesses that sought debt or equity finance(b)		14.0	19.2	27.7	37.7	16.8
Type of finance sought by businesses(c)(d)
	Debt	91.9	94.8	95.5	^90.9	93.4
	Equity	26.8	25.0	23.9	^36.7	25.9
Debt finance that was:(e)
	obtained	83.6	86.4	93.3	^89.7	85.9
	not obtained	4.9	3.6	1.5	0.9	3.9
	in progress(f)	11.5	10.7	8.6	^10.4	10.8
Equity finance that was:(g)
	obtained	^44.6	^43.4	^43.5	^54.0	44.3
	not obtained	^41.6	^49.1	^53.3	^29.9	45.3
	in progress(f)	13.8	7.7	5.8	*16.5	10.8
^ estimate has a relative standard error of 10% to less than 25% and should be used with caution.
* estimate has a relative standard error of 25% to 50% and should be used with caution.
(a) Businesses were asked to identify if they had sought any debt or equity finance and, if so, the type of finance sought and whether it was obtained.
(b) Proportions are of all businesses in each output category.
(c) Proportions are of all businesses that sought finance (either debt or equity) in each output category.
(d) Businesses could identify more than one type of finance and more than one status.
(e) Proportions are of all businesses that sought debt finance in each output category.
(f) As at the end of the reference period, 30 June 2015.
(g) Proportions are of all businesses that sought equity finance in each output category.

Overall, 17% of businesses sought debt or equity finance, of which 93% sought debt finance and 26% sought equity finance. More than four in five of those businesses that sought debt finance reported that they had obtained debt finance (86%). In contrast, less than half of businesses that sought equity finance reported that they had obtained equity finance (44%).

The Mining industry recorded the highest proportion of businesses that sought debt or equity finance (30%), followed by Agriculture, forestry and fishing (29%). In contrast, only one in ten businesses in the Health care and social assistance industry sought debt or equity finance (10%), the lowest proportion across all industries.

Almost twice the proportion of innovation-active businesses (22%) reported having sought debt or equity finance as non-innovation active businesses (12%).

Further statistics relating to business finance sought can be accessed via the Downloads tab.


Reasons for seeking debt or equity finance

Businesses that sought debt or equity finance during the year ended 30 June 2015 were asked the reasons for having sought finance, regardless of whether finance was obtained. Businesses were provided with a list of options and could select more than one reason.

Reasons for seeking debt or equity finance, by employment size(a), 2014-15
			0-4 persons	5-19 persons	20-199 persons	200 or more persons	Total
			%	%	%	%	%
Businesses that sought debt or equity finance(b)			14.0	19.2	27.7	37.7	16.8
Reasons for seeking debt or equity finance(c)(d)
	Ensure survival of business		36.2	29.1	^24.8	^21.9	32.0
	Maintain short-term cash flow or liquidity		35.6	41.1	48.0	^52.4	39.4
	Replacement of:
		IT hardware	3.4	7.9	13.7	11.1	6.4
		other equipment or machinery	22.9	33.3	^40.6	^26.8	28.9
	Upgrade of:
		IT hardware or software	5.7	5.6	14.5	^29.7	7.0
		other equipment or machinery	11.4	14.7	24.1	^20.0	14.3
	Purchase of additional:
		IT hardware or software	5.0	6.7	10.9	^27.3	6.6
		other equipment or machinery	12.4	23.5	25.4	^28.9	18.2
		assets not related to expansion	6.2	7.6	8.2	^16.4	7.1
	Expand business		13.3	16.4	24.9	^40.3	16.2
	To introduce new or improved goods, services, processes or methods		7.8	13.2	12.1	^20.5	10.5
	Other reasons businesses sought debt or equity finance		10.0	15.5	8.3	9.5	11.8
^ estimate has a relative standard error of 10% to less than 25% and should be used with caution.
(a) Only businesses that sought debt or equity finance were asked the reason(s) for seeking finance.
(b) Proportions are of all businesses in each output category.
(c) Proportions are of all businesses that sought finance (either debt or equity) in each output category.
(d) Businesses could identify more than one reason.

The most common reason reported by businesses for seeking finance was to maintain short-term cash flow or liquidity (39%), followed by ensure survival of business (32%). The least common reason was the replacement of IT hardware (6%).

For businesses with 200 or more persons employed, the most common reason for seeking finance was to maintain short-term cash flow or liquidity (52%), while for businesses with 0-4 persons employed it was to ensure survival of business (36%).

For nine of the 17 selected industries, the most common reason reported for seeking finance was to maintain short-term cash flow or liquidity. The Retail trade industry had the highest proportion of businesses that sought finance to ensure survival of business (52%).

A higher proportion of innovation-active businesses reported to expand business (20%) and purchase additional IT hardware or software (10%) as reasons to seek finance than non innovation-active businesses (10% and 2% respectively).

Further statistics relating to reasons for seeking debt or equity finance can be accessed via the Downloads tab.


Government financial assistance

Businesses were asked whether they received financial assistance from Australian government organisations (excluding tax deductions for normal business expenses) during the year ended 30 June 2015. Government organisations include federal, state/territory and local governments.

Government financial assistance received, by employment size(a)(b), 2014-15
		0-4 persons	5-19 persons	20-199 persons	200 or more persons	Total
		%	%	%	%	%
Type of government financial assistance(c)
	Grants	2.2	4.8	9.2	22.3	3.7
	Ongoing funding	0.2	1.4	4.3	11.1	0.9
	Subsidies	0.7	2.4	5.8	12.1	1.7
	Tax concessions	1.0	2.5	3.9	13.8	1.7
	Rebates	3.6	6.2	9.1	20.1	4.9
	Other government financial assistance received	1.7	2.4	3.9	5.5	2.1
Any government financial assistance received		7.7	15.6	26.0	52.0	11.8
(a) Proportions are of all businesses in each output category.
(b) Government includes federal, state/territory and local government.
(c) Businesses could identify more than one type of financial assistance.

Overall, 12% of businesses received some type of financial assistance from Australian government organisations. Rebates were the most common type of government financial assistance (5%).

The proportion of businesses that received at least one type of government financial assistance increased with each successive employment size range, from 8% of businesses with 0-4 persons employed to 52% of businesses with 200 or more persons employed.

The Health care and social assistance industry had the highest proportion of businesses that reported at least one type of government financial assistance (26%). The Agriculture, fishing and forestry industry recorded the highest proportion of businesses that received rebates (18%).

Further statistics relating to government financial assistance can be accessed via the Downloads tab.