Number of Australian businesses increases in recent months
Australian business performance is continuing to trend up in recent months, with the country seeing an expansion in the number of enterprises. That's according to the Australian Bureau of Statistics (ABS), which has released figures on the growth in the number of companies.
The research tracked the number of businesses that opened between June 2013 and 2014. In this time, the entry rate of companies – expressed as a percentage of total firms – rose from 11.2 per cent to 13.7 per cent.
The exit rate for companies also declined, dropping from 14 per cent in the previous year to only 12.7 per cent in these most recent findings.
With these two trends coming into force, the overall effect has been an increase in the number of companies operating in Australia. In fact, this figure was 1 per cent higher as a result of more start-ups and fewer closures.
All of the main states saw a steady or increasing number of businesses, with NSW seeing the largest increase and Victoria also recording a substantial expansion in the number of new companies.
While the number of firms opening was concentrated in the sole trader category, companies with staff on the books also recorded strong growth. What's more, there was a direct correlation between the number of staff a company has and the likelihood they would still be trading throughout the period of time the research covered.
For companies that are looking to realise the benefits of greater sales, it is important for individuals to consider the tools they can use to better drive growth and achieve long-term success. Effective productivity software is just one of the ways to ensure that companies are maximising their payroll as the business grows.
With this latest generation of Australian start-ups likely to make a major contribution to the ongoing demand for recruitment, having the expertise and advice to handle these developments is going to be essential for future growth.