According to estimates, Australia currently has around 2.3 million small Businesses. Sadly, one in three newly established small businesses in Australia fail in the first year, followed by two out of four by the end of the second year, and three out of four by the end of the fifth. To know more about small business news Australia follow The Aussie Way business blogs.
A recent study by the University of Technology, Sydney shows that the factors are frequently cited as the cause of business failure are poor financial management, bad management, bad record-keeping, issues with sales and marketing, issues with staffing, failure to seek outside counsel, general economic conditions, and personal factors.
Some Interesting Facts About Australia Small Businesses
- A company that employs fewer than 20 people is considered a small business. They make up nearly 98% of all businesses.
- Australia’s small Business sector has been the fastest-growing sector, that aged between 45 and 59, 61% of small business owners.
- Australia’s gross domestic product is composed of 35% of small businesses (GDP).
- 44% of the workforce in Australia is employed by small businesses.
- The main industries employing people are farming, forestry, and fishing.
- The second-highest number of workers are employed by small rental, hiring, and real estate businesses.
- There are more apprentices and trainees than in any other industry, with construction ranking third in terms of employment.
According to the Australian Small Business and Family business Ombudsman’s July 2019 report, a business’ survival percentage increases with size. The success percentage of 0–19 employee small businesses is 59.7%. Businesses with between 20 and 199 employees succeed at a rate of 75.8%.
This is consistent with a previous Australian Bureau of Statistics analysis that found that from 2010 to 2014, the survival percentage for small businesses with no employees was 56%. The percentage rose to 68% for companies with 1-4 employees.
Read full article here – Why Australian Small Businesses Are Failing In Early Stages
