Australian business is thriving, especially in NSW
Three consecutive years of business growth down under.
The latest research shows more businesses opened in New South Wales than any other state or territory in 2015/16, while industry construction experienced the largest growth in business counts nationwide.
The Australian Bureau of Statistics (ABS) released its Counts of Australian Businesses report revealing a moderate annual increase (2.4%) in the number of actively trading businesses operating in the market.
The number of actively trading businesses in Australia has increased for three years in a row.
As of June 2016, there were 2,171,544 businesses in Australia. Between 2014/15 and 2015/16 there was a modest rise in business entry rates (1.2%) and a slight decrease in business exit rates (-0.1%).
All states and territories experienced increased business counts in 2015/16 but New South Wales recorded the largest annual increase (3.0%).
The Australian Capital Territory (2.9%) and Victoria (2.8%) weren't far behind, and while Tasmania (0.4%) endured the lowest annual growth rate, it was the first positive result for the state in years.
The Australian Capital Territory had the best business entry rate (16.3%) and the highest exit rate (13.4%).
Nationally, the construction industry accounted for the most significant growth in business counts, up 3.5% year-on-year in 2015/16. Financial and insurance services businesses grew at the fastest rate (4.7%), partly due to the role of the superannuation funds industry class. Agriculture, forestry and fishing suffered the greatest total losses in business numbers, while mining had the largest percentage decrease (-2.7%).
The stats also reveal health care and social assistance businesses were the most likely to survive (74.2%) over the last four years. Accommodation and food services were least likely to last the distance (53.3%).
There are many challenges facing small businesses in Australia, whether just starting or established. A recent government issue paper highlights one of the most formidable - late payments.
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