AUSTRALIAN INDUSTRY BUSINESS ENTRIES AND EXITS
This section provides counts and details of the flow of Australian businesses into and out of the Australian economy, including the survival rates of entries. Data was sourced from the ABS Business Register and only includes businesses which actively traded in goods and services during the reference period, rather than all entities registered on the Australian Business Register (ABR). Businesses classified to ANZSIC Division M, Government administration and defence are excluded from the statistics. In addition, entities classified to the general government institutional sector are excluded for most industries. This exclusion particularly affects data for the Education, and Health and community services industries, where details relate only to private sector businesses. The term 'total selected industries' is used to refer to the aggregate of the industries included in this section.
Table 15.7 shows the number of actively trading businesses in Australia at the beginning and end of 2005-06. The number of businesses operating in the total selected industries at June 2006 was 1,963,907. This compares with 1,939,088 businesses operating at the beginning of 2005-06 (a growth of 1.3% during the period). The Property and business services industry had the greatest number of businesses at June 2006, 492,453 (or 25% of the total), followed by Construction (16%), and Retail trade and Agriculture, forestry and fishing (both 11%).
15.7 OPERATING BUSINESSES - 2005-06 |
| ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | Operating at start of year | Entries(a) | Exists(b) | Operating at
end of year | Change | ![](/icons/ecblank.gif) |
ANZSIC Division | no. | no. | no. | no. | no. | % | ![](/icons/ecblank.gif) |
| ![](/icons/ecblank.gif) |
Agriculture, forestry and fishing | 213 250 | 30 029 | 28 400 | 214 879 | 1 629 | 0.8 | ![](/icons/ecblank.gif) |
Mining | 6 563 | 1 467 | 1 033 | 6 997 | 434 | 6.6 | ![](/icons/ecblank.gif) |
Manufacturing | 108 177 | 12 702 | 14 101 | 106 778 | -1 399 | -1.3 | ![](/icons/ecblank.gif) |
Electricity, gas and water supply | 1 950 | 501 | 394 | 2 057 | 107 | 5.5 | ![](/icons/ecblank.gif) |
Construction | 303 048 | 53 385 | 48 028 | 308 405 | 5 357 | 1.8 | ![](/icons/ecblank.gif) |
Wholesale trade | 84 516 | 12 151 | 12 034 | 84 633 | 117 | 0.1 | ![](/icons/ecblank.gif) |
Retail trade | 216 960 | 34 401 | 33 677 | 217 684 | 724 | 0.3 | ![](/icons/ecblank.gif) |
Accommodation, cafes and restaurants | 54 686 | 10 358 | 9 378 | 55 666 | 980 | 1.8 | ![](/icons/ecblank.gif) |
Transport and storage | 114 264 | 18 956 | 17 578 | 115 642 | 1 378 | 1.2 | ![](/icons/ecblank.gif) |
Communication services | 23 581 | 4 504 | 4 894 | 23 191 | -390 | -1.7 | ![](/icons/ecblank.gif) |
Finance and insurance | 129 143 | 22 337 | 21 834 | 129 646 | 503 | 0.4 | ![](/icons/ecblank.gif) |
Property and business services | 480 936 | 80 770 | 69 253 | 492 453 | 11 517 | 2.4 | ![](/icons/ecblank.gif) |
Education | 14 954 | 3 072 | 2 739 | 15 287 | 333 | 2.2 | ![](/icons/ecblank.gif) |
Health and community services | 86 946 | 10 836 | 8 554 | 89 228 | 2 282 | 2.6 | ![](/icons/ecblank.gif) |
Cultural and recreational services | 45 404 | 7 833 | 7 700 | 45 537 | 133 | 0.3 | ![](/icons/ecblank.gif) |
Personal and other services | 54 710 | 11 276 | 10 162 | 55 824 | 1 114 | 2.0 | ![](/icons/ecblank.gif) |
Total selected industries | 1 939 088 | 314 578 | 289 759 | 1 963 907 | 24 819 | 1.3 | ![](/icons/ecblank.gif) |
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(a) Businesses which were actively trading on the Business Register at June 2006 but were either not included or not actively trading at June 2005. |
(b) Businesses which were actively trading on the Business Register at June 2005 but were either not included or not actively trading at June 2006. |
Source: Counts of Australian Businesses, including Entries and Exits (8165.0). |
Graph 15.8 shows that in 2005-06, business entry rates exceeded business exit rates in all but two industries (Communication services and Manufacturing). Electricity, gas and water supply (26%) and Mining (22%) had the highest entry rates, although these were the two smallest industries in terms of the total number of businesses. Over the same period, exit rates were highest for Communication services (21%) and Electricity, gas and water supply (20%).
15.8 Business entry and exit rates(a) - 2005-06
![Graph: 15.8 Business entry and exit rates(a)—2005–06](/AUSSTATS/ABS@.NSF/7d12b0f6763c78caca257061001cc588/d553a039b0a18032ca2573d20010a474/Body/0.33DC!OpenElement&FieldElemFormat=gif)
Graph 15.9 shows survival rates at June 2005 and June 2006 for business entries during 2003-04. Survival rates at June 2005 and June 2006 were highest for businesses in Health and community services, and Agriculture, forestry and fishing (both 80% and 67% respectively). Their survival rates at June 2005 and June 2006 are notably higher than the total selected industries average (75% and 58% respectively). Survival rates at June 2005 and June 2006 for business entries during 2003-04 were lowest for Cultural and recreational services, Communication services and Electricity, gas and water supply.
15.9 Business survival rates(a) - June
![Graph: 15.9 Business survival rates(a)—June](/AUSSTATS/ABS@.NSF/7d12b0f6763c78caca257061001cc588/d553a039b0a18032ca2573d20010a474/Body/0.56E0!OpenElement&FieldElemFormat=gif)