Solo ventures struggle
Figures show Cairns enterprises thriving
MORE people are starting their own businesses and failing, but Cairns’ transport, postal and warehousing sector is booming, adding 233 businesses in two years.
The growth spurt, which saw Cairns add another 281 businesses to the local economy, was linked to the nation’s 6 per cent jump in total business numbers between 2016 and 2018.
Yet that growth was not universal, with an astonishing 155 local government areas punished with a net loss in their total business numbers, according to the ABS business survival audit.
The Cairns local government area has 13,927 businesses, 6001 of them turning over more than $200,000 a year.
Of those, 319 turn over more than $5 million and another 603 turn over between $2 million and $5 million.
The region’s worst performed sector was rental, hiring and real estate services, which lost 110 businesses since 2016.
Nationally, that sector’s four-year survival rate is 72 per cent, with 12,872 exiting in the past year.
The rate of new business start-ups – and failures – were both higher than the previous year (15.1 per cent and 12 per cent, respectively).
Almost two-thirds of businesses in Australia (1.4 million) were non-employing, growing 4.8 per cent, which left just 877,000 businesses hiring people and paying them wages.
But it’s a volatile game out on your own.
The ABS Counts of Australian Businesses reveals 40 per cent of all non-employing businesses that operated in 2014 have closed.
Among them, the accommodation and food services sector posted the lowest survival rate across all categories at 53.8 per cent.
Banking and business entrepreneur Mark Bouris says new business owners must be a bit selfish to survive in a highly competitive marketplace.
“I think you need it to succeed on your own,” Mr Bouris told news.com.au on the eve of the data release.
“You’ve got to be singleminded. A bit selfish. You have to have a strong sense of self and put that first,” he said.
“It’s harder because of increased competition. You’re almost never the only one to have thought of something. You can be sure someone else has. And don’t think you’re the only one with drive.
“The pool of people who can compete with you is bigger than ever, thanks to the digital landscape. And also, consumers have much more to choose from. You have to be strategic to stand out.”
This is reflected on the jobs front, where most Cairns businesses don’t actually employ people beyond the current owners or partners. Those that do are most likely to employ 1-19 employees.