There are upcoming changes to the Characteristics of Australian Business release.
See ‘Survey impacts and changes’ for more information.
Characteristics of Australian Business
Latest release
Statistics in this release include business use of information and communication technologies, business performance, finance, markets, and skills.
Reference period
2021-22 financial year
Released
22/06/2023
Key statistics
- During the year ended 30 June 2022, 38% of businesses reported having experienced a skills shortage, compared to 24% for the year ended 30 June 2020.
- 22% of businesses reported having experienced a cyber security incident(s), compared to 8% for the year ended 30 June 2020.
- 70% of businesses reported having a preventative measure in place to address cyber security threats.
Characteristics of Australian Business 2021-22 is the first redeveloped General Characteristics of Australian Business and Business Use of Information and Communication Technology (ICT) module. The first innovation related release, “Innovation in Australian Business” was published on 8 July 2022.
The Characteristics of Australian Business and Business Use of ICT module will be run every two years as a stand-alone survey with a one-year reference period.
Factors hampering general business activities or performance
During the year ended 30 June 2022, more than two thirds of businesses (68%) reported a factor that significantly hampered general business activity or performance.
- Proportions are for all businesses in each output category.
- Businesses could report more than one factor.
Skills used / skills shortages experienced
In the 2021-22 BCS questionnaire, the survey question relating to the types of skills used by businesses in undertaking core business activities, and whether the businesses experienced any skill shortages, was significantly redeveloped.
Previously separate questions for “Skills used” and “Skills shortages” were combined into a single question. Significant changes were also made to the question response options. The re-developed response options reflect the terminology used by the National Skills Commission in the Australian Skills Classification.
| Skills - Used | Skills - Shortages | |
|---|---|---|
| % | % | |
| Financial | 49 | 5 |
| Business management | 48 | 5 |
| Project management | 24 | 4 |
| Supply chain management | 17 | 6 |
| Environmental management | 10 | 2 |
| Digital technologies and electronics | 35 | 6 |
| Customer service | 49 | 10 |
| Data, analytics and databases | 21 | 4 |
| Material transportation | 15 | 5 |
| Human resources | 21 | 8 |
| Sales and marketing | 32 | 6 |
| Science and mathematics | 8 | 3 |
| Other skills | 14 | 12 |
- Proportions are of all businesses in each output category.
- Businesses could identify more than one type of skill used.
- Businesses could identify more than one type of skill shortage.
While not directly comparable due to question changes, for the year ended 30 June 2022, 38% of businesses reported having skills shortage(s), compared to 24% of businesses for the year ended 30 June 2020.
During the year ended 30 June 2022, 12% of businesses reported other skills shortages experienced, higher than any specific skill listed.
The following word cloud presents the types of other skills shortage(s) reported by businesses. The more common responses are bigger and bolder. From most common to least, these other skill shortages include Trades, Labouring, Caring/Support, Hospitality, Nursing, Other medical, Engineering, Cleaning and Driving.
Other skill shortages experienced by businesses (a)(b), year ended 30 June 2022
Image
Description
The image presents the types of other skills shortage(s) experienced by businesses (a)(b), year ended 30 June 2022. The more common responses are bigger and bolder. From most common to least, these other skill shortages include Trades, Labouring, Caring/Support, Hospitality, Nursing, Other medical, Engineering, Cleaning and Driving.
- The most common responses to Other skills shortages, are displayed in larger text.
- Businesses could identify more than one type of skill shortage.
- Proportions are of all businesses that reported having experienced a skills shortage(s).
- Businesses could identify more than one type of skill shortage.
For the first time businesses were asked about measures used to address skills shortages during the year ended 30 June 2022.
- Proportions are of all businesses that reported experiencing a skills shortage in each output category.
- Businesses could report more than one measure.
Finance sought
Debt or equity finance sought
Businesses were asked if they sought debt or equity finance during the year ended 30 June 2022:
- 15% of businesses reported having sought debt or equity finance.
- The highest proportion of businesses that sought finance was recorded in Mining (37%), followed by Agriculture, forestry and fishing (28%).
Barriers to accessing finance
During the year ended 30 June 2022, 18% of businesses reported one or more factors having prevented or limited the business from accessing finance.
- Proportions are of all businesses in each output category.
- Businesses could report more than one limiting factor.
Internet connection type, speed and performance
Almost a third (31%) of businesses reported having a 5G mobile wireless internet connection during the year ended 30 June 2022, compared to 10% of businesses in the year ended 30 June 2020. Anecdotal information collected from businesses during the conduct of this survey suggests that the increased uptake of this connection type is related to its increased availability across geographic areas.
- Proportions are of all businesses in each output category.
- Businesses could select more than one type of connection.
For the first time, businesses were asked to provide information about their maximum contracted download speed of their fastest fixed internet connection. Businesses were also asked to assess the performance of the business’ internet connection during the year ended 30 June 2022.
- Proportions are of all businesses that reported an internet connection in each output category.
Over half of all businesses (52%) reported that the performance of their internet connection was sufficient.
- Proportions are of all businesses that reported an internet connection in each output category.
Business use of ICT
For the 2021-22 BCS, changes were implemented to the question relating to the types of Information and Communication Technologies (ICTs) used by businesses.
A number of response options were redeveloped and additional response options introduced to better reflect technological advancements.
During the year ended 30 June 2022, 85% of businesses reported using ICTs, compared to 69% of businesses for the year ended 30 June 2020. The most prominent ICTs were cyber security software, cloud technology and digital platforms.
- Proportions are of all businesses in each output category.
- Businesses could identify more than one type of ICT used.
- Nil or rounded to zero.
Importance of ICTs used to achieve selected outcomes
- Proportions are of all businesses in each output category.
- Businesses could identify more than one importance factor.
- Nil or rounded to zero.
Factors that prevented or limited businesses from using ICTs
Businesses were asked to report factors preventing or limiting them from using ICTs during the year ended 30 June 2022.
38% of businesses reported a factor that limited or prevented them from using ICTs.
- Proportions are of all businesses in each output category.
- Businesses could identify more than one factor.
E-commerce
For the 2021-22 BCS, changes were implemented to the business e-commerce related questions, both in structure and to better align with the OECD definition. The e-commerce questions now exclude email as a method for receiving or placing orders over the internet; as such, comparison with data from previous years is not appropriate.
Orders received and orders placed via the internet for any goods or services (a)(b), year ended 30 June 2022
Image
Description
The image presents orders received and orders placed via the internet for any goods or services (a)(b), year ended 30 June 2022: 30% of businesses reported having received online orders (a)(b): 20% received orders via an on-line ordering facility on their website or app, 12% received orders via a third-party website, platform, app or online marketplace, 6% received orders via an Electronic Data Interchange (EDI). 61% of businesses reported placing online orders (a).
- Proportions are of all businesses in each output category.
- Businesses could identify more than one type of online ordering facility.
For the first time businesses were asked whether the electronic invoices they issued during the year ended 30 June 2022 where suitable for automatic processing:
- 58% of businesses reported having issued electronic invoices not suitable for automatic processing.
- 13% of businesses reported having issued eInvoices in a standard structure suitable for automatic processing.
- Proportions are of all businesses in each output category.
- Businesses could identify more than one type of electronic invoice.
Cyber security incidents, impact and prevention
For the 2021-22 BCS, changes were implemented to the cyber security incidents question. Previously businesses were only asked if a cyber security incident had occurred. The question now includes descriptions of eight types of cyber security incidents and more than one option may be selected.
While not directly comparable due to question methodological changes; during the year ended 30 June 2022, 22% of businesses reported having experienced an internet security incident(s), compared to 8% for the year ended 30 June 2020.
- Proportions are of all businesses in each output category.
- Businesses could select more than one type of cyber security incident.
- Nil or rounded to zero.
Businesses that reported having experienced a cyber security incident(s) were asked about the impacts of the incident(s). For the year ended 30 June 2022, 56% of businesses reported having experienced an impact from a cyber security incident(s), compared to over 8 in 10 businesses (81%) for the year ended 30 June 2020.
- Proportions are of all businesses that reported a cyber security incident.
- Businesses could select more than one impact.
For the first time businesses were asked about security measures in place to prevent cyber security incidents during the year ended 30 June 2022.
70% of businesses reported having used cyber security measures.
Measures in place to prevent cyber security incidents (a)(b), during the year ended 30 June 2022
Image
Description
The image contains eight circles representing measures put in place by businesses to prevent cyber security incidents (a)(b), during the year ended 30 June 2022. The circles are sized and coloured according to the proportions of businesses that had reported each measure. "Regularly updated virus checking or protection software"(62%) was the most reported measure and is the largest circle and shaded in rose. "Regular backup of data critical to operations" (37%) is a smaller sized circle shaded in azure blue. "Restriction of administrative privileges to operating systems and applications" (24%) is a smaller circle again and is shaded in chartreuse green. The next two circles are the same size and represent "Identity and access management through the use of authentication software or hardware" (20%) shaded in azure blue, and "Regular patching of operating systems, software and applications" (20%) shaded in brownish orange. "Use of specific tools designed for security monitoring (15%) is the circle next size down and shaded in brownish orange. "Cyber security awareness and training for staff" (13%) is the second smallest circle shaded in dark green. The smallest circle represents "A formal policy or policies in place to manage cyber security risks" (8%) and is shaded in dark grey.
- Proportions are of all businesses in each output category.
- Businesses could select more than one measure.
Changes in this issue
A review of the Business Characteristics Survey (BCS) was undertaken in response to a number of considerations including:
- Feedback from key stakeholders about the utility of BCS data.
- Recommendation from the Innovation Metrics Review (IMR).
- ABS’ commitment to make it easier for businesses to provide data.
- Need for greater granularity in estimates (State and Territory and location data).
As a result, the BCS was redeveloped into two separate collections to capture more detailed information on the two principal topics (i.e., general characteristics of Australian businesses and business use of IT, and innovation).
Data downloads
Data cube spreadsheets
Data files
Business profile
Business performance and arrangements
Business interaction with government
Skills
Internet connectivity
Online presence and e-commerce
Use and management of ICT and cloud computing
Cyber security
Data Explorer datasets
Caution: Data in Data Explorer is currently released after the 11:30am release on the ABS website. Please check the reference period when using Data Explorer.
For information on Data Explorer and how it works, see the Data Explorer user guide.
Business profile, Performance and arrangements, year ended 30 June 2022
Business interaction with government and Skills, year ended 30 June 2022
Internet connectivity, Online presence and E-commerce, year ended 30 June 2022
Use and management of ICT, Cloud computing and Cyber security, year ended 30 June 2022
Survey impacts and changes
Upcoming changes to ‘Characteristics of Australian Business’ release
The ABS reviews and makes changes to its Forward Work Program to ensure it continues to appropriately measure the Australian economy, environment and society. The increasing appreciation of the value of data is generating significant additional demand for services of the ABS. As the growth in opportunities exceeds the capacity of the ABS, statistical outputs are prioritised. As a result of prioritisation, there will be changes to the Characteristics of Australian Business release.
From 2024-25 the Business Characteristics Survey will move to a biennial frequency, that is, collecting and publishing data every second year, rather than every year.
Given the change in frequency, the ABS is currently reviewing what data will be collected in the survey, as well as publication content, to ensure we can continue to provide high quality business characteristics data that is important to users, on the new biennial frequency.
The ABS invites feedback through the ABS Consultation Hub, and will make decisions on changes to the collection based on the information gathered in this consultation.
Previous catalogue number
This release previously used catalogue number 8167.0