Both business failure and start-up numbers are maintaining their 2010 highs signalling that while the macro-economic environment is enticing entrepreneurs into the marketplace poor management of business fundamentals is causing financial distress. Key Findings on business failures:
2,340 firms failed in the March quarter 2011
- This compares to the total number of failures in 2010 of 10,039
- The manufacturing sector had the greatest percentage of failures in the March quarter 2011 followed by the mining and wholesale trade sectors
- New South Wales had the greatest percentage of failures on a state by state basis
While natural disasters such as Cyclone Yasi had an impact on business failures in the March quarter 2011, state by state analysis indicates the impact was not disproportionate with nearly half of all business failures originating in New South Wales. This suggests that general economic and business conditions were the key factors in business failure.
37,910 new businesses commenced operations in the March quarter 2011
- New South Wales experienced the largest number of start-ups
To read the full analysis click on the attachment: Business start-ups and failures analysis March quarter 2011
Source: Dun & Bradstreet Australia
