8165.0 - Counts of Australian Businesses, including Entries and Exits, June 2015 to June 2019 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 20/02/2020   
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Key statistics

At June 30 2019 there were 2,375,753 actively trading businesses in the Australian economy.

In 2018-19 there was a:
2.7%, or 62,462, increase in the number of businesses.
15.4% entry rate, with 355,722 entries.
12.7% exit rate, with 293,260 exits.

Three industries accounted for more than half of total annual growth in businesses, these were:
Construction
Transport, postal and warehousing
Professional, scientific and technical services

Business entries and exits, 2015-16 to 2018-19, Australia
Graph. Shows counts of business entries, exits and net change between 2015-16 and 2018-19 financial years.



Main contributors to change

Industry

Annual change in business counts, by industry


Industry Division
2017-18
2018-19
Change
Change (%)

Agriculture, Forestry and Fishing
175,539
173,932
-1,607
-0.9
Mining
8,002
8,045
43
0.5
Manufacturing
85,510
86,428
918
1.1
Electricity, Gas, Water and Waste Services
7,020
7,376
356
5.1
Construction
385,273
394,575
9,302
2.4
Wholesale Trade
80,388
81,627
1,239
1.5
Retail Trade
131,478
132,835
1,357
1.0
Accommodation and Food Services
94,584
95,301
717
0.8
Transport, Postal and Warehousing
176,477
189,982
13,505
7.7
Information Media and Telecommunications
22,198
23,249
1,051
4.7
Financial and Insurance Services
206,820
211,644
4,824
2.3
Rental, Hiring and Real Estate Services
254,752
259,290
4,538
1.8
Professional, Scientific and Technical Services
284,674
294,471
9,797
3.4
Administrative and Support Services
91,193
96,249
5,056
5.5
Public Administration and Safety
7,737
7,922
185
2.4
Education and Training
31,451
33,055
1,604
5.1
Health Care and Social Assistance
135,252
141,628
6,376
4.7
Arts and Recreation Services
28,576
29,743
1,167
4.1
Other Services
98,127
102,053
3,926
4.0
Currently Unknown
8,240
6,348
-1,892
-

All Industries
2,313,291
2,375,753
62,462
2.7


Transport, postal and warehousing +7.7%

In 2018-19 this industry accounted for 21.6% of total annual growth in businesses.

This industry had a:
7.7% increase in the number of businesses, the largest of any industry, with an increase of 13,505 to 189,982 total.
27.2% entry rate, the highest of all industries, with 90.9% of entries being non-employing.
12.3% increase in sole proprietors, which now account for 63.1% of the industry.
45.7% three year survival rate of business entries, the second lowest of any industry.

The three classes that accounted for most of the growth in this industry were:
Other transport services n.e.c. (ANZSIC 5299)
Taxi and other road transport (ANZSIC 4623)
Courier pick-up and delivery services (ANZSIC 5102)

Construction +2.4%

In 2018-19 this industry accounted for 16.6% of all businesses and had the largest number of business counts across all industries.

This industry had a:
2.4% increase in the number of businesses, with an increase of 9,302 to 394,575 total.
16.5% entry rate, with 63,617 business entries, the most of any industry.

The three classes that accounted for most of the growth in this industry were:
House construction (ANZSIC 3011)
Carpentry services (ANZSIC 3242)
Total other construction services n.e.c. (ANZSIC 3200)

In two of these classes, Carpentry services and Total other construction services n.e.c., sole proprietors accounted for almost two-thirds of businesses in this period.

Agriculture -0.9%

In 2018-19 this industry had a:

    0.9% decrease in the number of businesses, the only industry to decline, with a decrease of 1,607 to 173,932 total.
    6.9% entry rate, the lowest of any industry, with 12,128 entries.
    7.8% exit rate, the lowest of any industry, with 13,735 exits.

The three classes that accounted for most of the decline in this industry were:
Beef cattle farming (specialised) (ANZSIC 0142)
Sheep farming (specialised) (ANZSIC 0141)
Forestry (ANZSIC 0301)

This was offset by increases in:
Sheep-beef cattle farming (ANZSIC 0144)
Grain-sheep or grain-beef cattle farming (ANZSIC 0145)
n.e.c. = not elsewhere classified

States and territories

In 2018-19 there was a:
5.2% increase in the number of businesses in the ACT, the largest of any state/territory, with an increase of 1,488 to 30,051 total.
3.6% increase in the number of businesses in Victoria, with an increase of 22,527 to 640,736 total.
1.0% increase in the number of businesses in Western Australia, the lowest of any state, with an increase of 2,363 to 232,967 total.

Annual percent change in businesses by Main State, 2018-19
Graph. Shows annual percentage change in counts of businesses by main state during 2018-19 financial year.

Institutional sector

In 2018-19 households accounted for 55.6% of all businesses, the largest of any institutional sector

There was a:
3.7% increase in non-financial corporations, the largest of any institutional sector, with an increase of 29,900 to 846,709 total.
2.4% increase in financial corporations, with an increase of 4,789 to 201,807 total.

65% of businesses in the household institutional sector were in the following industries:
Agriculture, forestry and fishing
Construction
Transport, postal and warehousing
Rental, hiring and real estate services
Professional, scientific and technical services

Financial corporations account for more than 95% of businesses in the financial and insurance services industry.

Type of legal organisation (TOLO)

In 2018-19 companies accounted for 37.9% of all businesses, the largest of any type of legal organisation, while sole proprietors accounted for 55.9% of total growth in businesses.

There was a:
5.5% increase in sole proprietors, the largest of any TOLO, with an increase of 34,890 to 664,279 total.
3.5% decrease in partnerships, the only TOLO to decline, with a decrease of 9,080 to 248,132 total.
23.2% entry rate for sole proprietors, the largest of any TOLO, with 146,240 entries.

Five industries accounted for 81.1% of growth in sole proprietors, these were:
Construction
Transport, postal and warehousing
Professional, scientific and technical services
Administrative and support services
Health care and social assistance

Employment size

In 2018-19 non-employing businesses accounted for 62.8% of all businesses, while 69.1% of employing businesses had 1-4 employees.

There was a:
3.9% increase in non-employing businesses, increasing by 55,385 to 1,490,932 total.
0.8% increase in employing businesses, increasing by 7,077 to 884,821 total.
4.8% increase in businesses with 200 or more employees, with an increase of 195 to 4,271 total.

Non-employers accounted for more than 70% of businesses in four industries, these were:
Agriculture, forestry and fishing
Transport, postal and warehousing
Financial and insurance services
Rental, hiring and real estate services

Turnover size

In 2018-19:
93.0% of businesses had turnover of less than $2 million.
25.0% of businesses had turnover of less than $50,000.
74.5% of entries had turnover of less than $200,000.

There was a:
4.7% increase in businesses with turnover of $10 million or more, with an increase of 1,666 to 37,464 total.

Five industries accounted for more than 60% of growth in businesses with turnover of $10 million or more, these were:
Manufacturing
Construction
Wholesale trade
Financial and insurance services
Professional, scientific and technical services