Industry data

Small business statistics

The numbers behind Australian small business: how many businesses there are and how big they are, how many join and leave the ABS count each year and how long they keep trading, company insolvencies, the small business share of jobs and value added, equipment investment and business lending, and counts of cafes, restaurants and gyms. Each figure links to the agency that published it and shows the period it applies to.

Reviewed 30 October 2026

Key figures

How many businesses there are

How many businesses are actively trading, how many of them are small businesses, and how they split by size and industry. The ABS counts a business when it is registered for GST and remitting it, so a business with an ABN but no GST registration is not counted.

2,741,087

small businesses actively trading

30 June 2026 · Small Business Ombudsman

Businesses with fewer than 20 employees, including those with none, which is the ABS size definition of a small business. Up 84,618 (3.2%) on 30 June 2025. Counted by the Small Business Ombudsman from ABS data.

Link to this figure

97%

of actively trading businesses are small businesses

30 June 2026 · Small Business Ombudsman

Small businesses have fewer than 20 employees, including those with none.

Link to this figure

2,814,778

businesses actively trading

30 June 2026 · ABS

Up 85,130 (3.1%) on the year. Covers businesses in the market sector that are registered for GST and remitting it, plus large businesses the ABS profiles directly.

Link to this figure

996,203

businesses with employees

30 June 2026 · ABS

Employing in ABS terms: an active payroll withholding role with a remittance to the ATO in the past five quarters, or three years for annual remitters, plus all large businesses the ABS profiles directly.

Link to this figure

1,818,575

businesses with no employees

30 June 2026 · ABS

Non-employing in ABS terms: no active payroll withholding role with a remittance to the ATO in the past five quarters, or three years for annual remitters. Up 4.8% on the year.

Link to this figure

9,020,389

Australian Business Numbers on the register that have not been cancelled

June 2026 · ABS

Of these, 5,993,998 had no active GST role or had stopped remitting GST, and the ABS does not count them as actively trading businesses.

Link to this figure
Businesses by number of employees 30 June 2026 · ABS
Employees Businesses
No employees 1,818,575
1 to 4 689,600
5 to 19 232,912
20 to 199 68,325
200 or more 5,366

Small businesses are those with fewer than 20 employees, including those with none. Employee numbers are the ABS's annualised estimates, derived from payroll data reported to the ATO. For most businesses the estimate uses payee data from the previous financial year. The no employees bar is the ABS non-employing count, based on payroll withholding roles and remittances rather than a head count.

Link to this chart
Businesses by industry 30 June 2026 · ABS
Industry Businesses
Construction 478,651
Professional, scientific and technical services 366,289
Rental, hiring and real estate services 319,717
Transport, postal and warehousing 261,109
Health care and social assistance 227,702
Agriculture, forestry and fishing 170,185
Retail trade 156,143
Financial and insurance services 139,417
Other services 138,735
Administrative and support services 130,330
Accommodation and food services 114,369
Manufacturing 90,879
Wholesale trade 82,448
Education and training 44,236
Arts and recreation services 40,792
Information media and telecommunications 26,250
Electricity, gas, water and waste services 9,168
Mining 8,755
Public administration and safety 7,908

Industry divisions of the ANZSIC classification. The 1,695 businesses whose industry is currently unknown are left out.

Link to this chart

How many businesses start and close

How many businesses joined and left the ABS count of trading businesses over the year, and how many were still trading years later. An exit is not always a failure: the ABS counts a business as exiting in cases including when its ABN is cancelled, when it stops remitting GST for an extended period, or when its ABN changes in a merger or acquisition.

460,461

businesses joined the ABS count of trading businesses

2025-26 · ABS

Includes 316,178 business births, which are new registrations, and 144,283 other entries, such as businesses that reactivated a cancelled ABN or started remitting GST again.

Link to this figure

16.9%

business entry rate

2025-26 · ABS

The ABS's entry rate for the year. For businesses with no employees it was 20.4%.

Link to this figure

375,331

businesses left the ABS count of trading businesses

2025-26 · ABS

Includes 297,588 cancellations, where an ABN was cancelled or a large business unit ceased, and 77,743 other exits, such as businesses that stopped remitting GST for an extended period.

Link to this figure

13.8%

business exit rate

2025-26 · ABS

The ABS's exit rate for the year. For businesses with no employees it was 17.2%.

Link to this figure

61.9%

of businesses trading at the start of the period were still trading at the end

June 2022 to June 2026 · ABS

Businesses actively trading in June 2022 that were still actively trading at 30 June of each year to June 2026.

Link to this figure

49.2%

of businesses that joined the count were still trading at the end of the period

Entered in 2022-23, to June 2026 · ABS

Businesses that entered the ABS count in 2022-23 and were still actively trading in June 2026. Entries include businesses re-entering the count, not only new businesses.

Link to this figure
Businesses still trading after joining the count, by year Businesses that entered in 2022-23 · ABS
Still trading in Share still trading
June 2024 75.9%
June 2025 58.1%
June 2026 49.2%

Businesses that entered the ABS count in 2022-23, and the share of them still actively trading in June of each later year. Entries include businesses re-entering the count, not only new businesses.

Link to this chart
Businesses still trading, by number of employees June 2022 to June 2026 · ABS
Employees Share still trading
No employees 55.3%
1 to 4 68.6%
5 to 19 77.9%
20 to 199 85.1%
200 or more 89.3%

Businesses trading in June 2022 that were still trading in June 2026, grouped by their number of employees in June 2022.

Link to this chart

Company insolvencies

Companies entering external administration, such as liquidation, voluntary administration or restructuring, or having a receiver or other controller appointed, from ASIC's insolvency statistics. ASIC counts each company once, at its first appointment, unless the company is taken out of external administration and later re-enters it. The figures cover companies only, not unincorporated businesses.

14,153

companies entered external administration or had a controller appointed for the first time

2025-26 · ASIC

Down from 14,722 in 2024-25. Each company is counted once, at its first appointment, unless it leaves external administration and later re-enters it. Members' voluntary liquidations, which wind up solvent companies, are not included.

Link to this figure

6,386

companies entered external administration for the first time through a creditors' voluntary liquidation

2025-26 · ASIC

A liquidation of an insolvent company, started by its directors and shareholders. Counted by the company's first appointment, so a company that moves into liquidation from voluntary administration is counted as a voluntary administration.

Link to this figure

3,144

companies entered external administration for the first time through a court liquidation

2025-26 · ASIC

A court liquidation starts with a court order, usually after an application by a creditor. Counted by the company's first appointment, so a company placed in court liquidation after a provisional liquidator or another appointment is not counted here.

Link to this figure

1,714

companies entered external administration for the first time through a small business restructuring

2025-26 · ASIC

In a small business restructuring, a restructuring practitioner helps the directors of an eligible company develop a plan to repay its debts, and oversees the plan if creditors accept it. Down from 2,918 in 2024-25.

Link to this figure
Companies entering external administration each year 2019-20 to 2025-26 · ASIC
Financial year Companies
2019-20 7,362
2020-21 4,235
2021-22 4,912
2022-23 7,942
2023-24 11,053
2024-25 14,722
2025-26 14,153

Each company is counted once, at its first appointment, unless it leaves external administration and later re-enters it. ASIC prefers this series for explaining trends in corporate failures. Includes companies that had a receiver or other controller appointed.

Link to this chart
Companies entering external administration by industry 2025-26 · ASIC
Industry Companies
Construction 3,472
Accommodation and food services 2,078
Other services 1,384
Retail trade 1,006
Professional, scientific and technical services 993
Transport, postal and warehousing 813
Administrative and support services 745
Manufacturing 667
Rental, hiring and real estate services 527
Health care and social assistance 464
Financial and insurance services 433
Arts and recreation services 281
Information media and telecommunications 263
Wholesale trade 250
Mining 193
Agriculture, forestry and fishing 184
Electricity, gas, water and waste services 159
Education and training 141
Public administration and safety 64

Industry as recorded in the external administrator's or controller's notice to ASIC. The 36 companies with no industry recorded are left out. Includes companies that had a receiver or other controller appointed.

Link to this chart

Small business share of jobs and value added

How much of the private sector's employment and industry value added comes from small businesses, as calculated by the Australian Small Business and Family Enterprise Ombudsman from ABS figures. Both cover the private sector industries the ABS publishes these figures for, which leave out financial and insurance services.

39%

of private sector employment was in small businesses

2023-24 · Small Business Ombudsman

The Small Business Ombudsman's calculation from ABS Australian Industry, Table 5. Small businesses have 0 to 19 employees. Covers private sector industries other than financial and insurance services, with employment at the end of June 2024. The ABS revised its figures for this year and published 2024-25 figures on 19 June 2026. This share was calculated from the earlier ABS release.

Link to this figure

32%

of private sector industry value added came from small businesses

2023-24 · Small Business Ombudsman

The Small Business Ombudsman's calculation from ABS Australian Industry, Table 5. Small businesses have 0 to 19 employees. Industry value added is the market value of what businesses produce, less the materials and expenses used to produce it. Wages are not deducted. Covers private sector industries other than financial and insurance services. The ABS revised its figures for this year and published 2024-25 figures on 19 June 2026. This share was calculated from the earlier ABS release.

Link to this figure

Equipment investment and business lending

How much private businesses invest in new equipment, plant and machinery, and the value of new finance leases businesses take on for plant, equipment and vehicles, from an ABS survey of businesses and figures reported by lenders. Investment is shown in volume terms, which take out the effect of price changes.

$25,124 million

private new capital expenditure on equipment, plant and machinery, in volume terms

June quarter 2026 · ABS

Chain volume measure (reference year 2023-24), seasonally adjusted. Down 8.9% on the March quarter 2026. Excludes agriculture, forestry and fishing, public administration and safety, superannuation funds, the public sector and micro non-employing businesses.

Link to this figure

18.7%

rise in private investment in equipment, plant and machinery over the year

June quarter 2025 to June quarter 2026 · ABS

Seasonally adjusted, in volume terms.

Link to this figure

2,943.2 million dollars

in new finance leases to businesses for plant and equipment

June quarter 2026 · ABS

Seasonally adjusted value of new finance lease commitments accepted by businesses, from lenders covering approximately 95% of business lending. A finance lease passes substantially all the risks and rewards of owning the asset to the business.

Link to this figure

821.3 million dollars

in new finance leases to businesses for road vehicles

June quarter 2026 · ABS

Seasonally adjusted value of new finance lease commitments accepted by businesses, from lenders covering approximately 95% of business lending.

Link to this figure

Cafes, restaurants and gyms

How many cafe and restaurant, takeaway food and gym businesses are trading, from the ABS count of businesses by industry class. The ABS counts cafes and restaurants together, so there is no separate count of cafes or coffee shops, and it counts businesses rather than venues.

56,305

cafe and restaurant businesses trading

30 June 2025 · ABS

ANZSIC class 4511: businesses that mainly serve food and drink for customers to eat on the premises, usually seated with table service. A business with several venues is counted once. The ABS may slightly perturb class counts to protect confidentiality.

Link to this figure

27,415

takeaway food businesses trading

30 June 2025 · ABS

ANZSIC class 4512: businesses where customers order and pay before eating, including takeaway shops, food courts, juice bars and food vans. A business with several venues is counted once. The ABS may slightly perturb class counts.

Link to this figure

7,961

gym and fitness centre businesses trading

30 June 2025 · ABS

ANZSIC class 9111, health and fitness centres and gymnasia operation, which also covers health clubs. A business with several venues is counted once. The ABS may slightly perturb class counts.

Link to this figure

Common questions

How many small businesses are there in Australia?

2,741,087 (30 June 2026, Small Business Ombudsman) small businesses were actively trading, according to the Small Business Ombudsman's count from ABS data. That is 97% (30 June 2026, Small Business Ombudsman) of all actively trading businesses.

How many businesses are there in Australia?

2,814,778 (30 June 2026, ABS) businesses were actively trading. 1,818,575 (30 June 2026, ABS) of them had no employees and 996,203 (30 June 2026, ABS) had employees. The register holds more ABNs, 9,020,389 (June 2026, ABS), because it also includes ABNs that are not actively trading and ABNs outside the market sector the ABS counts.

What percentage of businesses in Australia are small businesses?

Small businesses make up 97% (30 June 2026, Small Business Ombudsman) of actively trading businesses. The ABS size definition of a small business is based on its number of employees, and the count includes businesses with none.

What percentage of Australians are employed by small businesses?

Small businesses employed 39% (2023-24, Small Business Ombudsman) of the private sector workforce, according to the Small Business Ombudsman's calculation from ABS figures. That share leaves out the public sector and financial and insurance services, so it is not a share of all working Australians.

How many new businesses start in Australia each year?

460,461 (2025-26, ABS) businesses joined the ABS count of actively trading businesses over the year, a business entry rate of 16.9% (2025-26, ABS). Not every entry is a new business: the count also includes businesses that reactivated a cancelled ABN or started remitting GST again.

How many businesses close in Australia each year?

375,331 (2025-26, ABS) businesses left the ABS count of actively trading businesses over the year, an exit rate of 13.8% (2025-26, ABS). Not every exit is a closure: the count also includes businesses that were sold or merged, and businesses that stopped remitting GST for an extended period.

What is the small business failure rate in Australia?

The ABS publishes survival rates: the share of businesses still trading after a period. They cover businesses of every size, not only small ones. Of businesses that joined the count, 49.2% (Entered in 2022-23, to June 2026, ABS) were still trading at the end of the period. Of all businesses trading at the start of the period, 61.9% (June 2022 to June 2026, ABS) were still trading at the end. A business that stops trading has not always failed, because it may have been sold or merged. A chart above shows the rate for each business size.

How many businesses go insolvent in Australia?

14,153 (2025-26, ASIC) companies entered external administration or had a controller appointed for the first time, according to ASIC. These figures cover companies only, not unincorporated businesses. The charts above show the trend by year and the split by industry.

How many cafes, coffee shops and restaurants are there in Australia?

The ABS counted 56,305 (30 June 2025, ABS) cafe and restaurant businesses and 27,415 (30 June 2025, ABS) takeaway food businesses. Cafes and restaurants are counted together, so there is no separate figure for cafes or coffee shops, and each business is counted once however many venues it runs.

How many gyms are there in Australia?

7,961 (30 June 2025, ABS) businesses were running gyms, health clubs or fitness centres. The ABS counts these as businesses rather than venues.

Using these figures

You are welcome to quote any figure on this page. Please credit the original publisher named beside it, and link to this page if it saved you time. Each figure has its own link, so you can send readers straight to it.

How these figures are put together

Every figure on this page comes from the published source linked beside it and applies to the period shown with it. Figures are copied as published. Nothing is estimated, adjusted or combined from different sources.

Each figure is checked against its source when the page is reviewed, and the review date is shown at the top of the page. If a source publishes a newer figure before then, or you spot an error, let us know through the contact page.

Contact us about a figure

Sources

  1. Australian Bureau of Statistics: Counts of Australian Businesses, including Entries and Exits, July 2022 to June 2026 (data cube 1). ABS Business Register, built from Australian Business Register and ATO data. Data cube 1, tables 1 to 16, released 18 August 2026. Updates: Annual. Counts are released each August and industry class detail each December. Retrieved 30 October 2026.
  2. Australian Bureau of Statistics: Counts of Australian Businesses, including Entries and Exits methodology, July 2022 to June 2026. Derivation of the ABS business count from the Australian Business Register, June 2026. Updates: Annual, with each release. Retrieved 30 October 2026.
  3. Australian Small Business and Family Enterprise Ombudsman (ASBFEO): Small business population and key issues, Small Business Data Portal. ABS Counts of Australian Businesses, including Entries and Exits, July 2022 to June 2026, Table 13. Updates: No schedule published. Retrieved 30 October 2026.
  4. Australian Small Business and Family Enterprise Ombudsman (ASBFEO): Contribution to Australian Employment, July 2025. ABS Australian Industry 2023-24, Table 5, and ASBFEO calculations. Updates: No schedule published. Retrieved 30 October 2026.
  5. Australian Small Business and Family Enterprise Ombudsman (ASBFEO): Contribution to Australian Gross Domestic Product, July 2025. ABS Australian Industry 2023-24, Table 5, and ASBFEO calculations. Updates: No schedule published. Retrieved 30 October 2026.
  6. Australian Securities and Investments Commission (ASIC): Australian insolvency statistics, Series 1 and 2, released 26 October 2026. Appointment notices lodged with ASIC by external administrators and controllers, data to 11 October 2026. Updates: Weekly, two weeks in arrears. Retrieved 30 October 2026.
  7. Australian Bureau of Statistics: Private New Capital Expenditure and Expected Expenditure, Australia, June 2026. ABS quarterly Survey of New Capital Expenditure, released 27 August 2026. Updates: Quarterly. Retrieved 30 October 2026.
  8. Australian Bureau of Statistics: Lending Indicators, June Quarter 2026 (Table 28, business finance leases). Loan and finance lease commitments reported by lenders to APRA for the ABS, released 14 August 2026. Updates: Quarterly. Retrieved 30 October 2026.
  9. Australian Bureau of Statistics: Counts of Australian Businesses, including Entries and Exits, July 2021 to June 2025 (data cube 2). ANZSIC classes 4511 cafes and restaurants, 4512 takeaway food services and 9111 health and fitness centres and gymnasia operation, released 16 December 2025. Updates: Annual. Industry class detail is released each December. Retrieved 30 October 2026.

More reading: Asset finance brokers: the complete guide for operators

Financing equipment for your business?

One form, and free quotes matched to your kind of asset. Business and commercial use only.

Get free quotes