Backgrounder

(Attachment to GalaxC.com News Release 20th August 2008)

Services Businesses in Australia

GalaxC.com’s analysis of the latest data from the Australian Bureau of Statistics shows that of two million businesses in Australia, just over 1.6 million are small businesses that provide services to either consumers or other businesses.  Of this 1.6 million, 72% are sole traders and the self-employed.

It’s a hard time to be a sole-trader or small business looking for new customers. According to the Reserve Bank of Australia retail sales are falling, non-farm economic growth is now just 2 percent (less than half the 2007 figure), and consumer sentiment among Australian households has fallen to the lowest levels since the early 1990s. (Reference: Statement on Monetary Policy, Reserve Bank of Australia, August 11th 2008.)

There were 2,011,770 businesses in Australia as at June 2007, up 2.4% on the previous year.

Australia’s business community mainly consists of small businesses: 1.93 million businesses (96% of the total) employed less than 20 people.  (This includes 1.2 million businesses that did not employ staff.) 

1.89 million businesses (94% of the total) had an annual turnover of less than $2 million.

Most small businesses are service providers.  A total of 1.6 million businesses are small businesses (or self employed people) in service sectors relevant to GalaxC.com, and of these, 72% are sole traders and the self employed. 

By sector, the 1.6 million are in the following categories:

Source: GalaxC Online Pty Ltd, based on Australia Bureau of Statistics, ABS 8165.0 Counts of Australian Businesses, including entries & exits, Jun2003 to Jun2007

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Related News Release:

Creating a GalaxC of Opportunities for Small Business (Aug 08)