26 Jun 2014
Agricultural start-ups beat the history of small biz failure
Less than half of the firms that commenced operation in 2009 are still operating today. Data released by the Australian Bureau of Statistics in June shows the average survival rate of firm entrants from 2009 is just 47.5 per cent in 2013.
Industry wide, the lowest survival rates are firms operating in ‘Public Administration and Safety’, the highest in ‘Health Care and Social Assistance’. The Public Administration and Safety industry had the second highest rate of entrants for 2012-13 at 12.4 per cent.
Recognisably struggling sectors such as manufacturing had only a 49 per cent survival rate. The big surprise is more than 55 per cent of agricultural firms entering in 2009 are still operating today.
The chances of survival for a firm increases as time goes on however. For example, of the entrants in 2009, only 74.4 per cent survived through to 2011, according to the ABS. Of those still around in 2011, 79 per cent survived through to 2012 and of those operating in 2012, 82.3 per cent continued to survive until 2013.
The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.