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 business survival rates for business entries. Data were sourced from the ABS Business Register (ABSBR) and only include businesses that actively traded in goods and services during the reference period. Entities classified to the general government institutional sector were excluded for most industries. This exclusion particularly affects data for the Public administration and safety, Education and training and Health care and social assistance 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 start and end of 2010–11. The number of businesses operating in the total selected industries at June 2011 was 2,132,412. This compares with 2,124,650 businesses operating at June 2010 (an increase of 0.4% during the period). Construction had the greatest number of businesses at June 2011 (351,890 or 17% of the total). This was followed by Professional, scientific and technical services with 250,613 (12%), Rental, hiring and real estate services with 226,157 (11%) and Agriculture, forestry and fishing with 198,163 (9%). There was a marked decline (–3%) in businesses within the Agriculture, forestry and fishing industry during the period.

15.7 BUSINESSES BY INDUSTRY DIVISION—2010–11
	Operating at start of financial year	Entries	Exits	Operating at end of financial year	Change	Percentage change	Entry rate	Exit rate
ANZSIC Division(a)	no.	no.	no.	no.	no.	%	%	%
Agriculture, forestry and fishing	203 713	13 747	19 297	198 163	–5 550	–2.7	6.8	9.5
Mining	7 828	1 226	899	8 155	327	4.2	15.7	11.5
Manufacturing	91 593	9 285	10 650	90 228	–1 365	–1.5	10.1	11.6
Electricity, gas, water and waste services	5 702	888	728	5 862	160	2.8	15.6	12.8
Construction	350 366	52 867	51 343	351 890	1 524	0.4	15.1	14.6
Wholesale trade	78 938	10 398	10 089	79 247	309	0.4	13.2	12.8
Retail trade	143 681	20 919	20 921	143 679	–2	—	14.6	14.6
Accommodation and food services	80 127	14 444	12 831	81 740	1 613	2.0	18.0	16.0
Transport, postal and warehousing	135 045	18 148	21 128	132 065	–2 980	–2.2	13.4	15.7
Information media and telecommunications	18 635	2 969	2 750	18 854	219	1.2	15.9	14.8
Financial and insurance services	160 936	21 944	18 442	164 438	3 502	2.2	13.6	11.5
Rental, hiring and real estate services	224 499	22 912	21 254	226 157	1 658	0.7	10.2	9.5
Professional, scientific and technical services	246 285	36 664	32 336	250 613	4 328	1.8	14.9	13.1
Administrative and support services	81 518	14 697	14 096	82 119	601	0.7	18.0	17.3
Public administration and safety	7 840	1 344	1 402	7 782	–58	–0.7	17.1	17.9
Education and training	25 799	3 952	3 621	26 130	331	1.3	15.3	14.0
Health care and social assistance	97 611	11 404	8 004	101 011	3 400	3.5	11.7	8.2
Arts and recreation services	27 962	3 904	4 169	27 697	–265	–1.0	14.0	14.9
Other services	88 920	12 736	12 165	89 491	571	0.6	14.3	13.7
Currently unknown(b)	47 652	19 762	20 323	47 091	–561	np	np	np
All industries	2 124 650	294 210	286 448	2 132 412	7 762	0.4	13.9	13.5
np not available for publication but included in totals where applicable, unless otherwise indicated — nil or rounded to zero (including null cells)
(a) Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 (1292.0). (b) This category consists of businesses that are yet to be coded to an industry.
Source: Counts of Australian Businesses, including Entries and Exits, June 2007 to June 2011 (8165.0).

Graph 15.8 shows that in 2010–11, there were five industries (Agriculture, forestry and fishing; Manufacturing; Transport, postal and warehousing; Public administration and safety; and Arts and recreation services) where the business exit rates exceeded business entry rates. For Retail trade, the number of entries and exits were about equal, while for the remaining industries there were more entrants than exits.

Of particular note, was the growth of the Mining and Health care and social assistance industries between June 2010 and June 2011. In that period, the Mining industry grew from 7,828 businesses to 8,155 businesses, an increase of 327 (4.2%). In the same period, the Health care and social assistance industry grew by 3,400 businesses (3.5%).




Graph 15.9 shows survival rates at June 2009, June 2010 and June 2011 for business entries in 2007–08. Survival rates of business entries in 2007–08 at June 2011 were highest for businesses in the Health care and social assistance and the Rental, hiring and real estate services industries. Survival rates for these industries (62% and 56% respectively) were both higher than the total of all industries average (49%). Survival rates at June 2011 were lowest for Public administration and safety and Administrative and support services (38% and 41% respectively).

 

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