The Australian business landscape has experienced dynamic shifts in the period from July 2019 to June 2023, according to the recently released “Counts of Australian Businesses, including Entries and Exits” report.
As of June 30, 2023, Australia boasted a total of 2,589,873 actively trading businesses, representing a 0.8% increase (19,973 businesses) compared to the previous year. The market witnessed a noteworthy entry rate of 15.8%, with 406,365 new businesses entering the sector, accompanied by an exit rate of 15%, resulting in 386,392 business closures.
Industry Growth and Decline In the realm of industry growth, Health Care and Social Assistance saw the most substantial rise, with 10,721 new businesses, bringing the total to 185,260. Transport, Postal, and Warehousing followed closely, increasing by 5,040 to reach 218,662, while Professional, Scientific, and Technical services expanded by 4,960, totaling 336,214 businesses.
However, the Retail Trade industry encountered a decline, experiencing a reduction of 2,211 businesses, settling at 155,755.
Regional Variances The state of Queensland showed remarkable growth, gaining 11,031 businesses, making it the leader in net increase. In contrast, Victoria experienced a decrease of 7,606 businesses, marking it as the only state/territory with a decrease in business count.
Business Types and Sizes The data also revealed insights into the types and sizes of businesses. The number of non-employing businesses surged by 2.3% (35,542 businesses), with a transition of 35,509 surviving businesses from employing to non-employing status. Companies experienced the most significant net growth, rising by 42,246 businesses or 4.0%, while partnerships and sole proprietors experienced decreases of 3.8% and 1.7%, respectively.
The employment size distribution saw an 8.8% increase (5,204 businesses) in the 20-199 employee category, and an 8.0% increase (362 businesses) in the 200+ employee category. Conversely, the 1-4 employee category experienced a decrease of 3.5% (25,292 businesses).
Quarterly Trends The June quarter of 2023 showcased a 1.5% increase in the number of businesses, with an entry rate of 4.8% and an exit rate of 3.4%. The non-employing sector saw an increase of 0.9% (13,781), while a decrease of 0.2% (-2,432) was observed in total employing businesses.