With an entry rate of 15.8% and an exit rate of 15%
As of June 30, actively trading businesses in the Australian economy numbered 2,589,873 – that’s an increase of 0.8%, or 19,973, in 2022-23, fresh ABS figures showed.
The latest count of Australian businesses shows that 406,365 businesses have set up across the country, or a 15.8% rate of entry to the economy’s market sector, and 386,392 businesses have folded, or a 15% exit rate.
Over the 2022-23 period, the three industries that posted the largest net increases in businesses were healthcare and social assistance, which was up by 10,721 to 185,260 businesses; transport, postal, and warehousing, with an increase of 5,040 to 218,662 businesses; and professional, scientific, and technical services, which saw an increase of 4,960 to 336,214 businesses.
In contrast, the industry with the largest net decrease in businesses in 2022-23 was retail trade, with 2,211 exiting the sector, bringing the total to 155,755.
Queensland had the largest net increase in any state/territory in 2022-23, with an 11,031 increase in the number of businesses. On the other end of the spectrum was Victoria, with a 7,606 decrease in the number of businesses and was the only state/territory to post a decline.
Over the same period, financial corporations rose by 5.1% (4,659) to a total 96,082 entities and non-financial corporations up by to 3.3% (35,095) to 1,109,777. Households, which was the largest of any institutional sector at 53.4% of all businesses, dipped 1.4% (19,713) to 1,381,741.
In terms of the type of legal organisations, total companies had the largest net growth in 2022-23, lifting by 42,246 businesses, or 4%, to 1,094465, driven by births of total companies, with 137,164 business formed. Partnerships, meanwhile, dropped 3.8% (8,790) to 223,048, and sole proprietors slipped 1.7% (42,246) to 784,744.
In 2022-23, the number of non-employing businesses grew by 2.3%, or 35,542, with a net 35,509 surviving businesses making the shift from employing to non-employing. ABS figures also showed an 8.8% (5,204) rise in businesses with 20-199 employees to 64,559, an 8% (362) increase in businesses with 200+ employees to 4,895, and a 3.5% (25,292) drop in businesses with one to four employees to 703,467.
In the June quarter, the number of businesses increased by 1.5%, or 37,06 businesses, with a 4.8% entry rate (122,749) and 3.4% exit rate (85,686). Non-employing businesses were up 0.9% (13,781), while employing businesses were down 0.2% (-2,432).
In seasonally adjusted terms, there was a 0.8%, or 19,875, increase in the number of businesses in the June quarter, comprising of a 3.8% entry rate (122,477) and -5.1% exit rate (106,074).
Over the three months to June, the industry with the largest quarterly net increase in business was construction services, which was up 1.4%, or 4,527 businesses. This was followed by professional, scientific, and technical services (except computer system design and related services), with a 1.5% (3,987 businesses) increase, and postal and courier pick-up and delivery services, up 7.3% (3,350 businesses), ABS statistics showed.
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