Business Trends Report June 2014
Introduction The Bankwest Business Trends Report tracks working trends for people that run a business either as an employer or as an own account worker. The report looks at trends in the number of people running a business by industry, state, gender and age, as well as for full time and part time workers. Data has been sourced from the Australian Bureau of Statistics (ABS) Labour Force survey. The report was prepared for Bankwest by CoreData. This research was prepared by: CoreData Consulting Introduction 2
Key Findings Employment growth half of long-term trend Total employment growth has been positive in the year to February 2014, however at only 0.8% it is below the same point in 2013 (1.4%), and is well below the average rate of 2.0% recorded over the past 10 years. The number of Australians running their own businesses has stagnated in the past 12 months, with numbers falling by 0.2% to 1,160,200. Workers running their own business include 913,400 own account workers, and 246,800 employers. There are an additional 8,900 employers in the Australian workforce in February 2014, compared to 12 month earlier, an increase of 3.8%. The growth in employer numbers has been offset by a reduction in own account workers, with numbers falling by 1.2%, or 11,300 fewer workers. Victoria, Youth lead nation s Growth Victoria has led the nation in growth of new businesses in the past year with business owner numbers increasing by 8.4% in the past year to 308,100, while in the ACT numbers have increased by 2.8% to 12,100. Over 10 years Victoria is the only state to have recorded an increase with numbers growing by 12.2%, or an additional 33,400 business owners over the. Growth in workers running their own businesses has been highest among those aged 25-34 in the past year, with an increase of 8.5% leading to an increase of 15,300 business owners in this age group. This is despite the fact that this group is the second least likely to be running their own business. Part-time workers drive employment growth The number of people running their own businesses on a part time basis has grown by 17.9% over the past 10 years. Male business owners working part time have led the growth in this, with their numbers increasing by 29.9% to 180,300. In comparison the growth for females has been 10.2%. Over the longer term the number of people running businesses full time has fallen by 14.5% over the past 10 years, equivalent to a reduction of 125,425 people. While the majority of women in the workforce work full time (54.3%), the majority of women who run their own business do so on a part time basis (57.7%). This is in stark contrast to male business owners, of which 75.9% work full time. Strongest growth in Health & Social Assistance There are an additional 10,300 workers running health and social assistance businesses compared to 12 months ago, a 13.9% increase and the strongest growth by industry. Manufacturing business prospects have been mixed across Australia, with the number of Victorian workers running businesses growing by 18.5% to 17,500. Conversely, in NSW the number has declined by 38.3% in the past year to 13,200. Status of employment No. workers 000s Employment trends* % of total employment over 1 yr over 5 yr over 10 yr Employee 10,271.4 89.6% 0.9% 8.4% 26.3% Employer 246.8 2.2% 3.8% -13.9% -17.8% Own account worker 913.4 8.0% -1.2% -3.7% -0.9% Contributing family worker 25.8 0.2% 15.6% -2.7% -25.5% Total 11,457.3 100.0% 0.8% 6.7% 22.0% Running own business** 1,160.2 10.1% -0.2% -6.0% -5.1% * average of four quarters to Feb 2014 **Employers plus own account workers Vast majority of new workers are employees In the year to February 2014 the total number of Australians employed has grown by 0.8% compared to the same point in 2013 to take the total number people in the workforce to 11,457,300, or 95,300 more than in 2013. The vast majority of this growth has come from growth in the number of employees, which while only growing by 0.9% over the year, accounted for 98.8% of the increase in employment. Key Findings 3
The number of workers running their own business has fallen slightly in the past 12 months by 0.2% to 1,160,200. This is also down by 6.0% over five years, and 5.1% over 10 years. The decline has been driven by a reduction in own account workers which fell by 1.2%, offsetting the 3.8% increase in employers. Changes in the number of business owners and employees over the past 10 years Employment growth less than half of trend Total employment growth has been positive in the year to February 2014, however at only 0.8% it is below the same point in 2013 (1.4%), and is well below the average annual rate of 2.0% recorded over the past 10 years. The number of workers who run their own businesses (employers and own account workers) has fallen by 0.2% in the past year, which is a considerably smaller decline than in 2013, when numbers fell by 5.4% compared to the previous year. Employment trends over 1, 5 and 10 years Key Findings Employers rebound in past year The trend of an employee dominated work force over the long term has continued in 2014, with the number of employees growing by 26.3% in 10 years, compared to a reduction in the number of employers (17.8%), own account workers (0.9%) and those running own business (5.1%). 4
Compared to 2013 the strongest growth has come from employers, which have increased by 3.8% to 246,800. In contrast the number of own account workers has fallen by 1.2% in the past year. Over five years only employees have recorded growth, with numbers increasing by 8.4%, while employer numbers have seen a big decline (13.9%), and own account workers have fallen by 3.7%. Part time/full time employment growth over 1 year Additional part time workers drive employment growth Overall employment growth has remained positive due to the 2.3% increase in the number of part time workers to 3,448,600, while the number of full time workers has only grown by a marginal 0.2% to 8,008,700 in the year to February 2014. Part time worker growth has been driven by a 2.7% increase in the number of part time employees, and by a 3.3% increase in employers. Numbers have been tempered by a reduction in the number of own account workers, which fell by 1.4%. The number of full time employers grew by 3.9% over the past year, with an additional 7,400 employers in the workforce compared to 2013. Employment trends for full-time/part-time workers Employed Full Time ( 000) No. workers 000s (yr to May % of total employment over 1 yr over 5 yr over 10 yr Employee - FT 7,262 63.4% 0.2% 6.3% 24.3% Employer - FT 197.2 1.7% 3.9% -16.6% -20.6% Own account worker - FT 544.9 4.8% -1.1% -10.8% -12.0% Contributing family worker - FT 4.5 0.0% 35.6% -12.3% -16.7% Total - FT 8,008.7 69.9% 0.2% 4.3% 19.3% Running own business - FT 742.1 6.5% 0.2% -12.4% -14.5% Status of employment No. workers 000s (yr to May % of total employment over 1 yr over 5 yr over 10 yr Employee - PT 3,009.2 26.3% 2.7% 13.8% 31.2% Employer - PT 49.6 0.4% 3.3% -1.4% -4.3% Own account worker - PT 368.6 3.2% -1.4% 9.2% 21.8% Contributing family worker - PT 21.2 0.2% 11.7% -0.8% -27.2% Total - PT 3,448.6 30.1% 2.3% 13.0% 28.8% Running own business - PT 418.2 3.6% -0.9% 7.8% 17.9% Key Findings 5
Part time workers running businesses increase over 10 years There is a clear disconnect between the full time and part time workforce over the longer term, with the number of people running businesses full time falling by 14.5% over the past 10 years, equivalent to a reduction of 125,425 people running businesses full time. In contrast the number of workers running businesses part time has grown by 17.9% or equivalent to an extra 63,625 new businesses. Part time workers more likely to run businesses The proportion of people running businesses part time represents only 3.6% of the total workforce, compared to 6.5% of the workforce who run businesses full time. However, when looked at as a proportion of the part time workforce the 418,200 people running businesses is 12.1% of all part time workers, compared to the 742,100 running businesses full time which represent 9.3% of all full time workers. Workers running a business as a % of all workers Long term decline in business owners As a proportion of the total workforce, the number of people running a business has been steadily falling in Australia over the past 20 years. In 1993, 15.2% of all workers ran a business, compared to only 10.1% of workers in 2014. In contrast, the proportion of employees in the workforce has grown from 83.7% in 1993 to 89.6% in 2014. Key Findings 6
Business Trends by State No. workers 000s Business owners by state % of all state workers over 1 yr over 5 yr over 10 yr New South Wales 355.2 9.9% -3.5% -7.7% -5.9% Victoria 308.1 10.8% 8.4% 10.2% 12.2% Queensland 231.3 10.0% -3.3% -16.3% -14.4% South Australia 90.8 11.3% -1.5% -11.7% -8.6% Western Australia 126.4 9.5% -1.7% -9.2% -14.4% Tasmania 27.9 12.1% -2.7% -7.2% -4.0% Northern Territory 8.5 6.6% -16.0% -1.7% -6.8% Australian Capital Territory 12.1 5.7% 2.8% -9.6% -18.7% Australia 1,160.2 10.1% -0.2% -6.0% -5.1% Victoria leads nation in new business growth While the number of workers running businesses has dropped across Australia overall, this has not been consistent across all states. Workers running businesses in Victoria have increased by 8.4% in the past year to 308,100, while the number of business people in the ACT has increased by 2.8% to 12,100. However, in remaining states the figures have not been so positive, with the number of NSW workers running businesses falling by 12,900 or 3.5% in the past year. The Northern Territory has seen the largest decrease proportionally, with a 16.0% decline. Victoria only state with business owner increase over 10 years Over 10 years Victoria is the only state to have recorded an increase in the number of business owners, with numbers growing by 12.2%, or an additional 33,400 business owners, during the. Queensland suffers largest 10-year decline The number of workers running businesses in Queensland has fallen by 38,800, or 14.4%, representing the largest decline in absolute numbers of all states and territories. Significant declines have also been seen in NSW, with 22,300 fewer workers running businesses, and Western Australia, with 21,300 fewer workers running a business. Business Trends by State 7
Business Trends by Industry Agriculture industry has highest proportion of people running own business Agriculture, forestry and fishing has the highest proportion of people running their own business at 39.5%. As a proportion of workers in that industry this has grown slightly compared to 2013 (38.8%), however, in absolute terms there has been no movement in the past 12 months. 10,000 additional workers running health care and social assistance businesses The number of workers running healthcare and social assistance businesses has increased by 13.9% in the past 12 months, representing an additional 10,300 workers running businesses in this industry. This has been driven by business owners in NSW, Western Australia and Victoria. The next highest growth has been in information, media and technology which increased by 13.6% and public administration and safety which increased by 12.0%. Fall in utility businesses The number of workers running electricity, gas, water and waste service businesses has fallen by 40.9% in the past 12 months, the largest decline in any industry. Other significant declines in the last year include wholesale trade with 17.1% fewer business owners, mining (15.3% fewer), financial and insurance services (9.9%) and rental hiring and real estate services (6.4%). Employment trends by industry No. workers 000s % of total workers in over 1 over 5 industry running yr yr own business 000s over 10 yr Agriculture, Forestry and Fishing 120.7 39.5% 0.0% -31.1% -30.7% Mining 1.8 0.7% -15.3% 89.5% -14.3% Manufacturing 58.3 6.3% 0.0% -11.1% -18.0% Electricity, Gas, Water and Waste Services 2.4 1.6% -40.9% -32.2% 131.0% Construction 242.7 23.9% 0.5% -12.4% -2.8% Wholesale Trade 21.4 5.3% -17.1% -18.9% -33.6% Retail Trade 74.3 6.1% -3.1% -19.2% -29.6% Accommodation and Food Services 49.7 6.5% -3.2% 4.7% -20.7% Transport, Postal and Warehousing 64.1 10.9% -2.8% -16.7% -17.1% Information Media and Telecommunications 12.5 6.2% 13.6% 19.6% 10.9% Financial and Insurance Services 13.6 3.2% -9.9% -19.2% -13.8% Rental, Hiring and Real Estate Services 20.4 10.5% -6.4% -6.7% -16.9% Professional, Scientific and Technical Services 126.1 14.1% -5.2% 6.5% 21.6% Administrative and Support Services 86.6 22.5% 1.4% 37.1% 35.5% Public Administration and Safety 4.0 0.5% 12.0% -12.6% -71.5% Education and Training 44.4 5.0% 6.2% 16.4% 38.0% Business Trends by Industry Health Care and Social Assistance 84.8 6.1% 13.9% 32.3% 47.8% Arts and Recreation Services 33.5 16.0% -0.1% -1.4% 0.1% Other Services 99.0 21.0% 2.7% 0.5% 9.7% Total 1,160.3 10.1% -0.2% -6.0% -5.1% 8
Mining business owners increase most in five years Over a five year workers running businesses in mining has grown fastest, with numbers jumping by 89.5%. However, with only 1,800 workers who run mining businesses in Australia these figures only represent a small proportion of the wider workforce. In contrast, administrative and support services which grew by 37.1% and health care and social assistance which grew by 32.3% added a combined 44,100 workers running businesses to the labour force over this. Long-term decline continues for farming, forestry and fishing industry In absolute terms the agriculture, forestry and fishing industry has seen the largest decline in workers running businesses over the past 10 years, with more than 50,000 fewer workers in 2014 compared to 2004. The industries that have grown the most proportionally over the past 10 years are the professional, scientific and technical services, which grew by 21.6% over this to add 22,400 more workers running businesses and the administrative and support services sector, which grew by 35.5%, increasing the number of own account workers and employers by 22,700. Business Trends by Industry 9
Industry Trends by State Industry Trends by State Top ten industries for workers running businesses - NSW No. workers 000s % of all state business owners over 1 yr over 5 yr over 10 yr Construction 72.6 20.4% -2.8% -3.5% -5.1% Professional, Scientific and Technical Services 40.0 11.3% -15.9% -0.9% 24.7% Agriculture, Forestry and Fishing 35.0 9.9% 0.4% -23.1% -24.6% Health Care and Social Assistance 29.0 8.2% 30.9% 22.6% 55.9% Other Services 28.8 8.1% 10.3% -6.9% 8.7% Administrative and Support Services 24.5 6.9% -0.8% 18.8% 11.1% Retail Trade 24.3 6.8% -14.0% -26.2% -26.8% Transport, Postal and Warehousing 20.2 5.7% -4.6% -11.7% -27.2% Accommodation and Food Services 17.0 4.8% -9.2% -24.4% -32.3% Education and Training 15.7 4.4% 26.4% 16.3% 44.4% Seven thousand more healthcare and social assistance businesses The number of workers in NSW running healthcare and social assistance businesses has increased by 30.9% over the past year, adding an additional 6,850 to the state s workforce. This also represents an increase of 55.9% over the past decade. Education and training in NSW has also seen a strong increase in the number of workers running businesses, growing by 26.4% in the past year or an additional 3,275 business owners, and by 44.4% over 10 years. Large decline in number of manufacturing businesses Manufacturing has fallen out of the top 10 industries for workers running businesses in NSW, with a dramatic drop of 38.3% in the past year, representing 8,200 fewer manufacturing business people in the state. This decline has largely been led by fewer workers running furniture, textiles, machinery and metals businesses. The professional, scientific and technical services industry has also seen a large decline in numbers in the past year (15.9%), with 7,550 fewer businesses. Construction is the industry with the most business owners in NSW, with one in five workers running businesses coming from this sector. However, over the past year the number of construction business owners has fallen by 2.8%. Agriculture, forestry and fishing was the largest industry in terms of workers running their own businesses prior to the 1990s. However over the past two decades the number of business owners in this industry has fallen by 49.0% or by 33,600. 10
Top ten industries for workers running businesses Victoria No. workers 000s % of all state business owners over 1 yr over 5 yr over 10 yr Construction 61.4 19.9% 9.8% -7.5% 5.9% Professional, Scientific and Technical Services 40.1 13.0% 23.7% 39.1% 47.0% Agriculture, Forestry and Fishing 33.6 10.9% 10.6% -27.1% -9.8% Other Services 24.3 7.9% 1.1% 15.9% 10.6% Administrative and Support Services 22.7 7.4% 8.5% 66.9% 67.5% Health Care and Social Assistance 22.1 7.2% 13.6% 41.8% 54.5% Retail Trade 17.9 5.8% -1.5% 2.7% -23.0% Manufacturing 17.5 5.7% 18.5% 19.5% 1.2% Accommodation and Food Services 14.0 4.5% -5.3% 107.0% 0.7% Transport, Postal and Warehousing 12.9 4.2% -3.9% -27.1% -4.8% Increase in number of Victorian businesses driven by professional services and construction The 8.4% increase in the number of Victorian workers running businesses has been driven by a 23.7% uplift in the number of professional, scientific and technical service business owners, and a 9.8% increase of those in the construction industry. Together these two industries represent an additional 13,175 business owners, or 55.3% of the state s total growth over the past year. Victorian agriculture, forestry and fishing businesses have made a recovery over the past year, with the number of workers running businesses increasing by 10.6%. However, this short-term increase has not been enough to arrest a long term decline of 9.8% compared to 2004. Manufacturing businesses increase in Victoria In contrast to NSW, the number of workers running manufacturing businesses has grown strongly by 18.5% over the past 12 months to 17,500 in the state. The past year s growth has seen manufacturing business numbers recover to now be slightly higher than they were 10 years ago in 2004. While none of the top 10 industries saw a major decline in the number of workers running businesses, there was a fall in accommodation and food services, transport, postal and warehousing and a slight in decline in retail. Industry Trends by State 11
Industry Trends by State Top ten industries for workers running businesses Queensland No. workers 000s % of all state business owners over 1 yr over 5 yr over 10 yr Construction 49.6 21.4% 1.5% -23.5% -7.1% Agriculture, Forestry and Fishing 23.8 10.3% 0.8% -38.9% -42.2% Administrative and Support Services 22.4 9.7% 13.3% 63.8% 51.4% Other Services 20.9 9.0% -1.6% -9.6% 14.7% Professional, Scientific and Technical Services 20.5 8.9% -20.1% -19.0% -10.7% Health Care and Social Assistance 15.3 6.6% -6.4% 54.8% 32.4% Retail Trade 14.5 6.2% -4.0% -32.5% -34.9% Transport, Postal and Warehousing 14.1 6.1% -5.4% -25.1% -20.5% Manufacturing 11.4 4.9% 20.3% -31.0% -35.5% Education and Training 8.4 3.6% -6.2% -2.0% 30.9% Number of Queenslanders running admin and manufacturing businesses increases Over the past year the number of business owners in administrative and support services has increased by 13.3%, adding an additional 2,625 businesses to the Queensland economy. This has continued a long term trend with numbers also increasing by 63.8% over five years. The other major growth industry in Queensland has been manufacturing, where unlike its southern neighbour NSW, the number of workers running manufacturing businesses has increased by 20.3% to 11,400 in the past year. Construction remains the top industry for workers running businesses in the state, with 49,600 business owners. Compared to five years ago, the number of construction business owners is 23.5% lower in 2014. However, the slight (1.5%) increase in numbers over the past year suggests this trend may be reversing. Queensland professional services businesses take a hit The number of workers running professional, scientific and technical services has dropped by 20.1% in the past year, resulting in 5,150 fewer business owners. This industry represents the majority of the overall decline in Queensland business owner numbers. Other industries with fewer business owners year-on-year include healthcare and social assistance, transport, postal and warehousing, retail trade and education and training. 12
Top ten industries for workers running businesses Western Australia Western Australia No. workers 000s % of all state business owners over 1 yr over 5 yr over 10 yr Construction 29.7 23.5% -4.0% -18.9% -5.9% Other Services 13.2 10.4% 20.6% 17.9% 16.1% Professional, Scientific and Technical Services 12.4 9.8% -14.8% 10.2% 7.3% Health Care and Social Assistance 9.6 7.6% 49.8% 62.6% 81.0% Transport, Postal and Warehousing 9.3 7.3% 6.0% 4.5% -11.9% Retail Trade 9.2 7.3% 16.4% 7.3% -31.7% Administrative and Support Services 9.2 7.2% -16.4% 22.8% 52.5% Agriculture, Forestry and Fishing 8.3 6.6% -27.0% -50.4% -61.9% Manufacturing 7.5 5.9% 13.3% -13.9% -18.8% Education and Training 4.2 3.3% 3.1% 80.4% 25.8% Strong growth in Healthcare business numbers in past year The number of Western Australian workers running healthcare and social assistance businesses has increased by 49.8% in the past year, taking the total number to 9,600 in the state. This industry has seen a steady increase over the longer term, with numbers increasing by 62.6% over five years, and by 81.0% over 10 years. Other services, which covers a broad range of services such as religious and interest group services, repair and maintenance and household services, has also seen a big increase, growing by 20.6% to become the second largest industry behind construction in terms of business owners in Western Australia. Decline in agriculture businesses drives overall business owner decline The number of workers running agricultural, forestry and fishing businesses has dropped by 27.0% in the past year, representing a decline of 3,075 businesses. This has continued a long term trend of decline, with numbers 50.4% down in comparison to 2009, and 61.9% lower than in 2004. Other industries which have seen business owners decline include professional, scientific and technical services (14.8%), administrative and support services (16.4%) and construction (4.0%). Industry Trends by State 13
Industry Trends by State South Australia Top ten industries for workers running businesses South Australia No. workers 000s % of all state business owners over 1 yr over 5 yr over 10 yr Construction 19.5 21.5% -1.4% -5.9% 2.6% Agriculture, Forestry and Fishing 15.4 16.9% 1.3% -29.7% -24.1% Professional, Scientific and Technical Services 7.9 8.7% 2.3% -0.9% 37.4% Other Services 7.8 8.6% -22.0% -8.2% -0.6% Health Care and Social Assistance 5.6 6.2% -1.3% -7.0% 9.8% Manufacturing 5.6 6.2% 47.4% 28.7% -11.1% Transport, Postal and Warehousing 5.1 5.6% -1.5% -25.6% -6.0% Accommodation and Food Services 5.0 5.5% 62.6% 119.8% 29.0% Retail Trade 4.9 5.4% 12.6% -35.9% -41.7% Administrative and Support Services 4.6 5.0% -22.5% -16.1% -5.2% Number of accommodation and food services business jump in South Australia The number of workers running accommodation and food services businesses has increased by 62.6% over the past year, leading to an additional 1,925 businesses in the state. This has continued a longer term trend of growth, with numbers in 2014 some 119.8% higher than at the same point five years ago. Manufacturing is the other industry which has seen considerable year-on-year growth, with the number of business owners increasing by 47.4% in the past year. There have been large declines in the number of workers running businesses in other services, and administrative and support services, with numbers dropping by 22.0% and 22.5% respectively in the past 12 months. 14
Business Trends by Gender Status of employment Workers running businesses by gender No. workers 000s % of total employment over 1 yr over 5 yr over 10 yr Males 747.8 12.1% 0.1% -8.7% -9.3% Females 412.4 7.9% -0.8% -0.8% 3.7% Total 1,160.2 10.1% -0.2% -6.0% -5.1% Growth in number of business owners for both genders well behind overall growth The proportion of working men who run their own business has remained stable at 12.1%, with numbers growing only 0.1% in the past year. In contrast, the number of women running businesses has fallen by 0.8% compared to the same point in 2013 and 2009, while remaining 3.7% higher than in 2004. The growth in numbers for both men and women running businesses is particularly poor when compared to the growth in the total number of people employed, with growth of 19.5% in the number of men employed over the past decade, and 25.0% in the number of employed women. Most women run their businesses part time While the majority of women in the workforce work full time (54.3%), the majority of women who run their own business do so on a part time basis (57.7%). This is in stark contrast to male business owners, of which 75.9% work full time. Two in five women (41.5%) who are classed as employers only work part time, indicating that businesses which are run part time are a likely source of growth in the rest of the workforce. Employment trends by gender % working full time % working part time Employers show highest growth level across genders Employers have had the highest level of growth for all categories of workers for both genders, with the number of women employers increasing by 5.8% in the past year, and male employers growing by 2.7%. In contrast, the number of own account workers has fallen by 2.4% for females and 0.6% for males, offsetting the growth in the number of workers running their own business. Business Trends by Gender 15
Business Trends by Gender Employment growth by gender over 1 year Business owners fall over five years Over five years the number of workers running their own business has fallen. Males have been hit hardest with a decline of 8.7% over this, while the number of females running a business has fallen by 0.8%. The number of male employers has experienced the largest decline over this, falling by 15.3%, compared to a decline of 11.1% for females. In contrast, the number of employees has grown by 8.3% for males and 8.6% for females. As the largest category of the workforce, employees have been the driving force of keeping overall employment growth levels positive. Employment growth by gender over 5 years 16
Number of Male business owners declines over 10 years Over a 10 year, the number of men running a business has fallen by 9.3%, however the number of male employees has risen by 25.1%. In contrast, growth for women over this has been positive, with the number of females running a business growing by 3.7%. However, this growth is much smaller than the growth in the number of women working as employees which has increased by 27.6% over the. The number of both male and female employers has dropped considerably over 10 years, falling 18.8% and 15.9% respectively. The number of own account workers has fallen for men by 6.2%, while growing by 10.3% for women. Employment growth by gender over 10 years Business Trends by Gender 17
Businesses Trends by Age Workers running businesses by age No. workers 000s % of total employment in age group over 1 yr over 5 yr over 10 yr 15-24 45.5 2.5% 0.6% -11.6% -9.8% 25-34 194.8 7.6% 8.5% -0.2% -12.2% 35-44 270.1 10.6% -5.7% -15.9% -19.0% 45-54 282.4 11.6% -4.1% -11.4% -13.2% 55-64 255.8 16.0% 3.8% 3.3% 12.5% 65 and over 111.6 29.0% 1.1% 11.2% 75.1% Total 1,160.2 10.2% -0.2% -6.0% -5.1% Quarter lifers leading growth in people running businesses People aged 25-34 have seen the highest growth in workers running their own businesses in the past year, with an increase of 8.5% accounting for 15,300 more business owners in this age group. This is despite the fact that this group is the second least likely to be running their own business. Other age groups which have recorded an increase in business owners include people aged 55 64 (3.8%), people aged over 65 (1.1%) and workers aged 15 to 24 (0.6%). In contrast, for those aged 35 to 44 and those aged 45 to 54, the number of business owners has fallen by 5.7% and 4.1% respectively. Long term growth with over 55s Over the longer term older workers have been the only ones to record growth in the number of business owners in the past 10 years. There has been a 75.1% increase in those aged over 65 owning a business, leading to an increase of 47,900 business owners in this. In addition the 12.5% increase in business owners aged 55 to 64 has led to an additional 28,500 business owners in this age bracket. Construction drives growth in younger workers There are an additional 2,280 workers aged 15-24 running their own construction businesses over the past year, representing an increase of 18.1%. This has been tempered by a decline in the number of workers in this age group running education and training businesses, the number falling by 21.6%. 3,000 new healthcare businesses run by quarter lifers There has been a 35.8% increase in the number of transport, postal and warehousing businesses run by workers aged 25-34 over the past year, taking the total number of these businesses to 11,600. Other industries which have also seen large increases in business owners include healthcare and social services, with an additional 2,900 businesses, and information, media and telecommunications, which has increased by 2,350 in the past 12 months. Business Trends by Age The number of workers aged 25-35 and running their own agricultural business has fallen by 21.5% over the past 12 months to 8,100, while accommodation and food services has also seen a decline of 25.6% to 5,800. Healthcare businesses increase due to middle-aged workers Over the past 12 months the number of workers aged 35-44 running healthcare and social assistance businesses has increased by 29.2% to 24,700. However, this has been offset by a 15.0% reduction in the number of those running professional, scientific and technical services. 18
Overall drop in middle-aged workers owning businesses Middle aged workers have become less likely over the past year to running their own business, with the number of business owners aged 35-44 falling by 5.7%, and those aged 45-54 falling by 4.1%. Over the long term both these groups have also seen declines, with the number of business owners falling by 19.0% and 13.2% respectively for each group over 10 years. Business Trends by Age 19
Editor s Notes Editor s Notes The information in this report has been prepared using data from the Australian Bureau of Statistics (ABS) Labour Force publication, Labour Force Australia Detailed Quarterly, February, (code 6291.0.55.003). The number of people running a business equals the sum of the number of employers and the number of people working on their own account. Data quoted in the report is an average of the four quarterly results in each i.e. data for the year to February 2014 is an average of the four quarters to February 2014. Please note that tables may not sum due to rounding throughout the report. In addition there are some small statistically insignificant differences in the overall totals dependent on the data splits. This is an artefact of the ABS process of data aggregation in which various estimations are made which do not affect the overall findings. 20