Weekly Economic Thought Starter
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74.2% of businesses in the Health Care and Social Assistance Sector that were operating in June 2012 survived until June 2016.
The Australian Bureau of Statistics released its Counts of Australian Businesses, include Entries and Exits, June 2012 and June 2016 on 21 February this year showing that more businesses are entering the Australian marketplace and fewer businesses are exiting today than was the case in 2012. In fact, overall, around 310,000 new business entered the market in 2015-16 compared to just 239,000 in 2012-13. While exits declined from just over 300,000 in 2012-13 to 260,000 in 2015-16.
This strength of this change depends on the industry you are in of course with Health Care and Social Assistance exhibiting an exit rate of just 8.4 percent in 2015-16. Health Care and Social Assistance also had the highest rate of survival over the 2012 to 2016 period with just under three quarters of all businesses operating in June 2012 still operating in June 2016.
In contrast, the Accommodation and Food Service sector experienced the lowest survival rate with just over half of businesses operating in June 2012 still operating four years later in 2016.