48% of all WA businesses close within four years of starting up, according to the Australian Bureau of Statistics.
We are all familiar with seeing businesses close down, however the actual number is staggering. Data from the Australian Bureau of Statistics reveals that of the 36,122 WA (new) businesses that began in 2007-08, only 17,554 were still operating in June 2011. WA Chamber of Commerce and Industry economist John Nicolaou said the 48 per cent survival rate was not surprising, given the unusual trading conditions in the current economic climate.
Mr Nicolaou pointed to labour, electricity costs and tax rates increases and consumer confidence being still relatively low after the global financial crisis as key factors.
"Business has been dealt a double whammy in terms of difficult trading conditions in the market, and at the same time there are higher costs of doing business." said Mr Nicolaou.
Of the TOTAL 211,745 WA businesses operating in mid-2007, there were 126,716 still in business by the middle of last year (just under 60%). Amazingly, not only a large number of new businesses close but a good portion of longer operating businesses do too.
This goes to show HOW important good marketing, sales and business management is to business survival and success.