Key Facts and Figures You Need to Know About Small Businesses
According to a recent write-up published by the Australian Bureau of Statistics, the small business arena is integral to the present-day economy:
- As of this past year, there are roughly 2.2 million private sector companies operating within Australia, which marks a considerable 35% increase over the figures reported in the year 2000.
- Of these entities, upwards of 97% are categorised as small or medium-sized businesses, which means that they employ anywhere from 0-249 people.
- A massive subsection of the organisations in Australia are actually classified as micro businesses, with more than 1.2 million companies employing less than nine individuals in total.
As such, the contemporary economic landscape revolves around the productivity and value of smaller companies and sole proprietorships.
Understanding the Lifecycle of Small Businesses
A particularly troubling finding, on the other hand, was the fact that approximately 30,000 new businesses were formed in Australia during the past 12 months, but nearly 25,000 companies dissolved or went bankrupt during the same timespan. This distressing trend can be largely attributed to the unprecedented level of competition for market share across every industry, but it’s important to delve into the specifics in order to understand exactly what causes businesses to fail:
- Believe it or not, only 30-40% of newly created businesses will survive for more than 24 months, and this harrowing rate is present in every single service niche in Australia, New Zealand, and other Pacific regions.
- Several financial studies have determined that about eight in 10 businesses go under due to avoidable solvency problems, such as lacklustre bookkeeping, inequitable contractual agreements, exorbitant facility leases, litigation, and other avertible complications.
- 74% of today’s managers, supervisors, and proprietors say that their number-one problem is being able to adapt to changes in financial reporting, corporate regulations, employment codifications, and licensing rules.
- Based on a recent analysis of 289 small businesses that have been operating for at least eight years, the most profitable entities had partnerships with external consulting and accounting firms, which underscores the crucial role of third-party expertise nowadays.
Thus, it’s in your best interests to contact a time-tested, versatile consulting firm – such as Barrett and Partners in Vanuatu, for example – to help you take your scope of operations to the next level and avoid the most common impediments.
How Can a Team of Consultants Help Me?
Irrespective of the nature of your business or the size of your company, the best-rated consulting specialists can provide dexterous assistance with a vast array of necessities:
- Advanced accounting, bookkeeping, and auditing services to ensure compliance and fiscal accuracy throughout the year.
- In-depth corporate support with forming trusts, facilitating valuations, and conducting mergers, and other complex undertakings.
- Obtaining licenses and permits to adhere to local laws and stipulations.
- Managing and regulating strata titles with regard to leases and corporate management.
- Sector-specific guidance, advice, and counselling to help you maintain a healthy bottom line.
With an adaptable consultant by your side, you’ll be able to resolve a seemingly infinite number of issues in a streamlined, cost-conscious manner, so be sure to reach out to a professional panel of advisors sooner rather than later.