Small business continues to be a crucial part of Tasmania’s economy, representing 95 per cent of total businesses1. A small business is categorised as one that employs 20 or fewer people and is independently owned and operated2. Small businesses are important vehicles for income generation and wealth creation, and the self-employment these businesses generate is an important contribution to employment levels in the Tasmanian economy. Over the past decade, small business growth has increased approximately 37 per cent from 23 700 in 2001 to 36 000 now3. There are approximately 5 000 business entries in Tasmania each year. The survival rate of Tasmanian business is higher than in any other state or territory in Australia, with 76 per cent of businesses that were operating in June 2007 surviving to June 20094. Approximately 106 000 people are employed by small businesses in Tasmania5.
Table 1 provides a summary of the key characteristics and statistics of small business in Tasmania.
The economic impacts of the Global Financial Crisis (GFC) and the resources boom, combined with competition and changing consumer behaviour, have created a difficult operating environment in Tasmania for small businesses.
1 ABS, Counts of Australian Businesses, Including Entries and Exits, Cat No 8165.0, June 2009.
2 ABS, Small Businesses in Australia, Cat No 1321.0, 2001.
3 Ibid..
4 ABS 2010 Counts of Australian Businesses, Including Entries and Exits, Cat no 8165.0
5 Modelled from ABS, Counts of Australian Businesses, Including Entries and Exits, Cat No 8165.0, June 2009.
6 Ibid.
7 ABS, Characteristics of Small Business, Australia, Cat No 8127.0, 2004.
