8167.0 - Selected Characteristics of Australian Business, 2012-13 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 18/09/2014   
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BUSINESS MARKETS AND COMPETITION


GEOGRAPHIC MARKETS IN WHICH BUSINESSES SOLD GOODS OR SERVICES

These data provide information about the geographic markets businesses operated in during the year ended 30 June 2013.

Geographic markets in which businesses sold goods or services, by employment size(a)(b), 2012-13

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

Local(c)
81.6
83.5
84.3
84.8
82.5
Outside of local area but within the state/territory
33.0
40.6
46.7
67.0
36.7
Outside of state/territory but within Australia
20.6
25.1
36.7
65.5
23.5
Overseas
6.3
8.5
14.6
32.6
7.8

(a) Proportions are of all businesses in each output category.
(b) Businesses could report more than one geographic market.
(c) The local market is defined as 'the immediate area, town or city in which the business is located'.


More than 80% of all businesses sold goods or services within their local geographic market. Businesses with 200 or more persons employed were three times more likely to sell goods or services outside of state/territory but within Australia than businesses with 0-4 persons employed (66% and 21% respectively). Although businesses were least likely to sell goods or services in overseas markets, almost a third of businesses with 200 or more persons employed sold goods or services in these geographic markets, compared to 6% of businesses with 0-4 persons employed.

The Information media and telecommunications industry had the highest proportion of businesses that sold goods or services outside of state/territory but within Australia (54%) and overseas (28%), while the Agriculture, forestry and fishing industry had the highest proportion of businesses that sold goods or services
outside of local area but within state/territory
(55%).

Innovation-active businesses were more than twice as likely to sell goods or services overseas as non innovation-active businesses


Innovation-active businesses were more than twice as likely to sell goods or services overseas as non innovation-active businesses (11% compared to 5%) and almost twice as likely to sell goods or services
outside of state/territory but within Australia
(32% compared to 17%).

Further data relating to geographic markets in which businesses sold goods or services can be accessed via the Downloads tab.


GOVERNMENT PROCUREMENT

Results show the proportion of businesses that entered into a formal agreement or contract to supply goods or services to any government agency during the year ended 30 June 2013. This is the first time data for government procurement have been collected.

Government procurement, by level of government, by employment size range(a)(b), 2012-13

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

Businesses that reported agreements or contracts with:
Federal government
2.0
1.4
4.7
20.8
2.1
State/Territory or local government
4.4
7.8
13.3
28.5
6.3
Any government agency
6.0
8.4
14.8
33.8
7.6

(a) Proportions are of all businesses in each output category.
(b) Businesses could identify as both federal government and state/territoty or local government.


Overall, 8% of businesses entered into a formal agreement or contract to supply goods or services to any government agency. Businesses were most likely to have agreements or contracts with state/territory or local government agencies (6%).

Businesses in the Information media and telecommunications industry were the most likely to have agreements or contracts to supply goods or services to federal government agencies (7%), while the businesses in the Electricity, gas, water and waste services industry were most likely to have agreements or contracts with state/territory or local government agencies (13%).

Innovation-active businesses are more likely to have formal agreements or contracts with government agencies than non innovation-active businesses in 2012-13

Businesses of all sizes were more likely to have any agreements or contracts to supply goods or services to government agencies if they were innovation-active. Innovation-active businesses with 20-199 persons employed were almost three times as likely to have any government procurement than their non innovation-active counterparts (19% and 7% respectively).

Further data relating to government procurement can be accessed via the Downloads tab.


AMOUNT OF COMPETITION EXPERIENCED BY BUSINESSES

Results are presented for the amount of competition experienced by businesses during the year ended 30 June 2013.

Amount of competition experienced by businesses, by employment size(a)(b)(c), 2012-13

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

Amount of competition experienced by businesses:
none/captive market/no effective competition
18.0
9.8
8.2
11.0
14.6
one or two competitors
11.4
12.7
12.7
7.0
11.9
three or four competitors
10.9
14.8
19.3
16.7
12.8
five or more competitors
59.8
62.9
60.1
65.3
60.9

(a) Proportions are of all businesses in each output category.
(b) Businesses were asked to identify which one of four options best described the degree of competition experienced during the year.
(c) The sum of the component items may not equal 100% due to rounding and/or provision of multiple responses. Refer to Explanatory Note 30 and the Quality Declaration.


Consistent with previous results, 61% of businesses had five or more competitors, while 15% had none/captive market/no effective competition.

Businesses with 0-4 persons employed were most likely to have none/captive market/no effective competition (18%), while businesses with 200 or more persons employed were most likely to have five or more competitors (65%).

Almost three quarters of businesses in the Construction and the Financial and insurance services industries had five or more competitors (both 74%), while businesses in the Agriculture, forestry and fishing industry were most likely to have none/captive market/no effective competition (41%).

Further data relating to amount of competition experienced by businesses can be accessed via the Downloads tab.


SIZE OF COMPETITORS

These results provide information about the size of the majority of competitors that businesses had during the year ended 30 June 2013.

Size of competitors, by employment size(a)(b)(c), 2012-13

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

Competitors that were:
smaller in size than this business
6.4
10.6
13.0
14.5
8.4
same size as this business
51.1
54.1
51.3
50.7
52.1
larger in size than this business
45.1
38.8
37.0
36.7
42.3

(a) Proportions are of businesses reporting amount of competition in each output category.
(b) Businesses were asked to identify the size of their competition and were asked to nominate one only.
(c) The sum of the component items may not equal 100% due to rounding and/or provision of multiple responses. Refer to Explanatory Note 30 and the Quality Declaration.


Of those businesses that experienced some form of competition, over half indicated that the majority of their competitors were the same size as the business (52%), while over two in five indicated that the majority were larger in size (42%).

Businesses in the Administrative and support services industry were more likely to have competitors smaller in size (16%), while businesses in the Wholesale trade industry were most likely to have competitors larger in size (55%).

Further data relating to size of the majority of competitors can be accessed via the Downloads tab.