IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Business failure and change: an Australian perspective

Listed author(s):
  • Ian Bickerdyke

    (Productivity Commission)

  • Ralph Lattimore

    (Productivity Commission)

  • Alan Madge

    (Productivity Commission)

Registered author(s):

    „h Contrary to common perceptions, most Australian businesses survive for a considerable time ¡V for example, around two¡Vthirds of businesses are still operating after five years and almost one¡Vhalf are still operating after ten years. „h Around 7.5 per cent of businesses exit each year ¡V cessations account for around 80 per cent of exits (changes in ownership account for the remainder) ¡V but most exits are not firm failures. „h Each year, cessations account for, at most, between 9¡V10 per cent of total job losses and 3¡V4 per cent of GDP ¡V however, in net terms, these impacts are outweighed by the corresponding gains from new business start¡Vups. „h Less than 0.5 per cent of businesses exit each year due to ¡¥catastrophic¡¦ failure (bankruptcy or liquidation). The failure rate has fallen significantly in the past decade ¡V the estimated failure rate was 3.6 failures per 1000 enterprises in 1999-00, one¡Vthird of the rate in 1991-92 ¡V the decline is attributable to fewer company liquidations, rather than any fall off in unincorporated business bankruptcies.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by EconWPA in its series Labor and Demography with number 0105002.

    in new window

    Date of creation: 21 May 2001
    Handle: RePEc:wpa:wuwpla:0105002
    Note: Type of Document - PDF; prepared on IBM PC; to print on HP;
    Contact details of provider: Web page:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpla:0105002. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.