5675.0 - Experimental Estimates, Regional Small Business Statistics, Australia, 1995-96 to 2000-01  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 02/02/2004   
   Page tools: Print Print Page Print all pages in this productPrint All

SUMMARY OF FINDINGS

This summary of findings is based on experimental estimates and therefore should be used with care. Note, there have been revisions made to previously published data for 1995-96 to 1999-2000.

National Findings

From 1995-96 to 2000-01 the number of small businesses grew by 3.4% to 1,505,924. Over the same period the increase in total income for small business was 18.0%, expenditure 18.6% (including wages 29.9%) and profit 13.4%.

The average income for small business increased by 14.1% to $279,270 while average expenses rose 14.7% to $247,292.

Capital City and Regional Findings

    From 1995-96 to 2000-01, the number of small businesses in capital cities increased by 6.4% to 945,320. The only capital city to record a decrease in the number of small businesses was Hobart.

    Outside of the capital cities the number of small businesses decreased by 1.0% to 611,476 between 1995-96 and 2000-01. Of the 50 SDs outside the capital cities, 15 recorded an increase in the number of small businesses over the period.

    In capital city SDs the largest increases in total income for small business were recorded in Sydney and Melbourne, with a growth of over 22% from 1995-96 to 2000-01. Greater Hobart SD and Darwin SD were the slowest growing capital city SDs, with a growth in income of 3.0% and 7.9%, respectively.

    Outside the capital cities, 10 SDs experienced growth in income greater than 22% between 1995-96 and 2000-01. Of these, Queensland and South Australia contained three each, while Victoria and Western Australia contained two each. The highest growth regions outside the capital cities were the South West SD in Queensland (42.4%), Kimberley SD in Western Australia (41.7%), Outer Adelaide in South Australia (37.4%) and the Central West SD in Queensland (31.2%).

    A decline in total income to small business was recorded in four SDs. Three of these regions were in Western Australia: the Midlands SD (change in income was -1.1%), the South Eastern SD (-3.9%) and the Upper Great Southern SD (-8.8%). The Northern SD in South Australia was the fourth region, with a change in income of -4.8% over the period.

    Between 1995-96 and 2000-01, the average income of small business grew in all regions. In the capital city SDs average income grew 12.9% to $307,532 while average expenses increased by 14.2% to $270,091. At the same time, in regions outside the capital cities, average income grew 15.3% to $235,364 while average expenses rose by 14.7% to $211,946.
      EXPERIMENTAL ESTIMATES: NUMBER OF SMALL BUSINESSES AND TOTAL INCOME BY INDUSTRY, FOR SELECTED STATISTICAL DIVISIONS, 2000-01
      Melbourne
      Gippsland
      Victoria
      Business
      Income
      Business
      Income
      Business
      Income
      no.
      $m
      no.
      $m
      no.
      $m
      Agriculture, forestry and fishing
      7,736
      1,274
      4,767
      759
      49,209
      8,274
      Mining
      317
      170
      22
      15
      564
      275
      Manufacturing
      22,908
      10,510
      735
      190
      28,862
      12,440
      Construction
      44,720
      9,053
      2,164
      384
      61,527
      12,226
      Wholesale trade
      10,371
      7,711
      333
      170
      13,582
      9,415
      Retail trade
      29,408
      12,792
      1,588
      642
      42,181
      18,150
      Accommodation, cafes and restaurants
      5,371
      2,520
      435
      133
      9,421
      3,776
      Transport and storage
      15,977
      3,318
      683
      154
      21,713
      4,804
      Communication services
      3,664
      612
      118
      12
      4,595
      706
      Finance and insurance
      25,799
      12,520
      452
      82
      30,008
      13,330
      Property and business services
      58,425
      15,467
      1,477
      255
      70,799
      17,768
      Education
      2,066
      318
      52
      4
      2,525
      352
      Health and community services
      13,481
      3,454
      446
      101
      17,153
      4,364
      Cultural and recreational services
      9,133
      1,452
      262
      39
      11,492
      1,730
      Personal and other services
      13,860
      2,187
      585
      89
      18,879
      2,881
      Not specified(a)
      6,607
      1,576
      232
      16
      8,286
      1,777
      Total
      269,843
      84,934
      14,351
      3,043
      390,778
      112,267
      (a) Not specified includes records which could not be allocated an ANZSIC code as well as businesses coded to the industries 'Government administration and defence' and 'Electricity, gas and water supply'.
      Source: ATO files for companies, partnerships and trusts and individuals for 2000-01.

      EXPERIMENTAL ESTIMATES: AVERAGE ANNUAL GROWTH IN TOTAL INCOME OF SMALL BUSINESSES BY STATISTICAL DIVISION,
      1995-96 to 2000-01

      MAP - EXPERIMENTAL ESTIMATES: AVERAGE ANNUAL GROWTH IN TOTAL INCOME OF SMALL BUSINESSES BY STATISTICAL DIVISION, 1995–96 to 2000–01

      Source: ATO files for companies, partnerships and trusts and individuals for 1995-96 to 2000-01



      SOURCE OF DATA

      The data have been compiled using files provided to the ABS by the ATO. These files cover completed tax returns for companies, partnerships and trusts, and individuals declaring business income.


      THE DEFINITION OF SMALL BUSINESS

      The nature of the ATO data does not allow multi-location businesses to be identified and disaggregated. To enable regional estimates to be produced for a subset of the economy, the ABS created a small business definition designed to capture businesses which operate from only one location. A key assumption is that these small businesses are single location, or all locations are within the one region.

      For the purposes of this publication and the experimental estimates provided within it, the definition of small business refers to those businesses whose total income or expenses were between $10,000 and $5m in the financial year.

      LIMITATIONS OF DATA

      The number of businesses operated by individuals and partnerships or trusts decreased in 2000-01. This decrease is against the trend of economic growth and is contrary to expectations. It may reflect a different focus from the ATO during 2000-01 with the introduction of The New Tax System and the implementation of the Goods and Services Tax. A lower number of business tax submissions may have been received by the due date and as a result this may have impacted on the number of business returns on the 2000-01 file. Users are advised that this movement should be interpreted with care.

      STANDARD TABLES AVAILABLE FOR PURCHASE

      Table 1: Number and total income for employing and non-employing small businesses by statistical division, 1995-96 to 2000-01.

      Table 2: Total and averages for income, expenses and profit, for employing and non-employing small businesses by statistical division, 1995-96 to 2000-01.

      Table 3: Number of small businesses, total income, total expenses and profit by industry division by statistical division, 1995-96 to 2000-01.

      Table 4: Selected expenses as a percentage of total expenses for employing and non-employing small businesses, by statistical division, 1995-96 to 2000-01.

      Table 5: Ratio of current assets to current liabilities for small businesses by industry division by statistical division, 1995-96 to 2000-01.