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  • 29 Jul 2016

Business Numbers Are Up - Especially Accommodation and Food Services

Encouraging news for those buying or selling a business with the release of new figures from the Australian Bureau of Statistics (ABS). And Accommodation businesses and Food Services are topping the bill.

The number of actively trading businesses in Australia has increased for the second year in a row, according to the figures. Although there was a small drop in the number of new business registrations, fewer businesses closed, giving a total rise of one per cent in business numbers, representing an additional 21,000 businesses for 2014-15.

Mike Booth from the ABS said Victoria saw the largest number of new businesses, while Tasmania was the only state to see a fall in total business numbers.

"Tasmania's fall was influenced by the agricultural sector; Tasmania has the highest proportion of agricultural businesses, and agricultural business numbers have been in a prolonged decline," he said.

"South Australia and Queensland also have a high proportion of agricultural businesses, and they, like Tasmania, have recorded falls in business numbers since 2011.

"Finance and insurance services were the fastest growing sector, but this was almost entirely driven by superannuation funds."

Companies and trusts continue to be highly represented in Australian business structures, making up over 60% of all businesses.

Construction continues to have the most businesses operating, with 345,479 in operation in 2014-15. Health care and social assistance has the highest rate of business survival, with nearly 75% of businesses surviving over a four year period.

Electricity, Gas, Water and Waste Services had the fewest businesses operating in Australia in June 2015, while Accommodation and Food Services had the highest business entry rate in 2014-15.

In June 2015, most actively trading businesses had annual turnover under $200,000.