A decline in new business registrations sent the number of actively trading businesses in Australia 1 per cent lower in 2008/09, according to data released today by the Australian Bureau of Statistics (ABS).

While new business entry rates declined, the business exit rate remained steady during the same period, at 15.4 per cent for both the 2007/08 and 2008/09 financial years.

In June 2009, Australia had more than 2 million businesses. The greatest number of Australian businesses were in the construction industry (17 per cent), followed by professional, scientific and technical services (11 per cent). Rental, hiring and real estate services accounted for 10 per cent of all Australian businesses.

The type of legal structures used by Australian business operators in June 2009 showed a 5 per cent drop in the number of partnerships and a 2.5 per cent drop in sole proprietors. In contrast, there was a 3.3 per cent increase in trusts. The number of companies remained stable compared to the previous year.

The vast majority of Australian businesses are small businesses. In June 2009, almost two million businesses employed less than 20 staff, and almost two million businesses had an annual turnover of less than $2 million.

Of those businesses that survived from June 2008 to June 2009, most businesses retained relatively steady staffing levels. Of the businesses with fluctuating staffing levels, a slightly higher number of businesses decreased staffing numbers than increased staffing numbers.

Similarly, annual turnover remained relatively steady for most businesses. Of the few that fluctuated, similar numbers grew to those that shrank.