It’s well known the majority of new businesses fall over in their early years of trading.
But these stats from the Australian Bureau of Statistics show just how hard it can be for businesses in their infant years.
At the end of June 2013 there were almost 2.08 million trading businesses in Australia, a two per cent drop year-on-year.
For the 2012-13 financial year the entry rate of new businesses in Australia of 11.2 per cent, was lower than the exit rate of 14.1 per cent.
This graph shows more businesses were shutting up shop compared to new businesses entering the market last financial year.
Year-on-year, there were 2.3 per cent fewer new businesses trading in the 2012-13 financial year compared to the previous financial year.
The exit rate also increased year on year from 13.1 to 14.1 per cent in 2012-13.
In terms of the 342,753 new businesses which began trading in the 2009-10 financial year at the end of the 2013 financial year only 47.5 per cent were still operating.
The data doesn’t equate an exit to a business failure and also includes businesses that were sold from one owner to another, and in the processes changed its ABN.
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