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 were sourced from the ABS Business Register (ABR) and only include businesses which actively traded in goods and services during the reference period, rather than all entities registered on the 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 2006-07. The number of businesses operating in the total selected industries at June 2007 was 2,011,770. This compares with 1,963,907 businesses operating at the beginning of 2006-07 (a growth of 2% during the period). The Property and business services industry had the greatest number of businesses at June 2007 (507,508 or 25% of the total), followed by Construction (16%), Retail trade and Agriculture, forestry and fishing (both 11%). There was a marked decline (4%) in businesses within the Electricity, gas and water supply industry during the period under review.
15.7 BUSINESSES BY INDUSTRY DIVISION - 2006-07 |
|
 | Operating at start of financial year | Entries(a) | Exists(b) | Operating at end of financial year | Change | Percentage change |
| no. | no. | no. | no. | no. | % |
|
| Agriculture, forestry and fishing | 214 879 | 24 532 | 24 616 | 214 795 | -84 | - |
| Mining | 6 997 | 1 251 | 1 043 | 7 205 | 208 | 3.0 |
| Manufacturing | 106 778 | 13 918 | 14 131 | 106 565 | -213 | -0.2 |
| Electricity, gas and water supply | 2 057 | 273 | 362 | 1 968 | -89 | -4.3 |
| Construction | 308 405 | 62 035 | 48 036 | 322 404 | 13 999 | 4.5 |
| Wholesale trade | 84 633 | 13 115 | 12 350 | 85 398 | 765 | 0.9 |
| Retail trade | 217 684 | 35 876 | 34 252 | 219 308 | 1 624 | 0.8 |
| Accommodation, cafes and restaurants | 55 666 | 10 712 | 9 700 | 56 678 | 1 012 | 1.8 |
| Transport and storage | 115 642 | 19 292 | 17 611 | 117 323 | 1 681 | 1.5 |
| Communication services | 23 191 | 5 419 | 4 612 | 23 998 | 807 | 3.5 |
| Finance and insurance | 129 646 | 27 188 | 20 247 | 136 587 | 6 941 | 5.4 |
| Property and business services | 492 453 | 86 097 | 71 042 | 507 508 | 15 055 | 3.1 |
| Education | 15 287 | 3 713 | 2 735 | 16 265 | 978 | 6.4 |
| Health and community services | 89 228 | 11 702 | 8 612 | 92 318 | 3 090 | 3.5 |
| Cultural and recreational services | 45 537 | 8 800 | 7 529 | 46 808 | 1 271 | 2.8 |
| Personal and other services | 55 824 | 10 766 | 9 948 | 56 642 | 818 | 1.5 |
| Total selected industries | 1 963 907 | 334 689 | 286 826 | 2 011 770 | 47 863 | 2.4 |
|
| - nil or rounded to zero (including null cells) |
| (a) Businesses which were actively trading on the business register at June 2007 but were either not included or not actively trading at June 2006. |
| (b) Businesses which were actively trading on the business register at June 2006 but were either not included or not actively trading at June 2007. |
| Source: ABS Counts of Australian Businesses, including entries and exits, Australia, June 2003 to June 2007 (8165.0). |
Graph 15.8 shows that in 2006-07, there were three industries (Agriculture, Forestry and Fishing, Manufacturing and Electricity, Gas and Water Supply) where business exit rates exceeded business entry rates. This was the first year, since the business counts records commenced in 2003, that the Agricultural Industry recorded more exits than entries. The remaining thirteen industries reported more entrants. Of particular note were the Education, Finance and insurance and Construction industries. Between June 2003 and June 2007, the Education industry grew from 15,172 businesses to 16,265 businesses, an increase of 1,093 (7%). In the same period, the Finance and insurance industry grew by 6,588 businesses (5%).
15.8 business entry and exit rates(a) - 2006-07
Graph 15.9 shows survival rates at June 2006 and June 2007 for business entries during 2003-04. Survival rates at June 2006 and June 2007 were highest for businesses in Health and community services and Agriculture, forestry and fishing (71% and 65% respectively). Their survival rates at June 2006 and June 2007 are notably higher than the total selected industries average (65% and 58% respectively). Survival rates at June 2006 and June 2007 were lowest for Communication services (53% and 45%), Education (56% and 49%), and Personal and other services (58% and 51%).
15.9 2003-04 business entries, survival rate(a)
- June 2006 and June 2007
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