I recently received an email with a snap shot of some statistics on the Capricorn Coast and Rockhampton region, particularly with you were looking to invest in the region. Amongst the statistics was the figure 8034, being the number of registered businesses in the region.
The same source, Australian Bureau of Statistics, indicated 24.3% of these reported a turnover of $0-$50K. Thus I calculated 1952 registered businesses in the region have an annual turnover of less than $50000, nearly 1 in 4. That’s not profit, just sales before the cost of goods sold and expenses are deducted. My first reaction was only 8034 businesses in the whole Rockhampton and Livingstone Council area and 1952 of which could fall over any day, scary!
Don’t know why I initially thought negatively about a business with turnover of less than $50K, after all it could be a healthy sign of new businesses just starting up buoyed by the promise of better times ahead, like the two I met last week. The snap shot figures didn’t elaborate. The 8034 registered businesses though didn’t seem right (high enough) and led me to dig, well click, a bit deeper. Apparently there are 26678 entities in the Capricorn Coast and Rockhampton region with an active Australian Business Number (ABN). 8024 (not 8034) in 2016-17 were registered businesses. 25.2 (not 24.3%) of these reported turnover $0 to $50000, 2020 businesses, just over 1 in 4. Still not sure if this is a good or bad sign of the economy. Of these 2020 businesses, the top 3 sectors were 459 in Agriculture, forestry and fishing, 265 in Construction and 250 in Financial and insurance services. Let’s hope all these businesses are in the growth stage of their business not in decline. The number of total registered businesses dropped from the year previous, but the number with a $0 to $50K turnover grew. Maybe a positive amongst the negative!
What these figures highlight is how fragile small business is and brave or stupid the owners are (I say this as a small business owner). Consider, nearly 60% of businesses in Capricorn Coast and Rockhampton regions have a turnover of less than $200K. The average annual employee income for the region was $58885. Possibly most local business owners would be currently financially better working for someone else. Yet there were 114 more of these local businesses (<$200k T/O) then the year before, providing diversity and opportunity for the local population. Good reasons to support them.
This possible increase (confidence) in new entrepreneurial activity could trigger further investment in the region, generating more diversity and opportunity, maybe even in the >$200k turnover businesses, where more employment opportunities are likely to be created.
Nearly all businesses start with a dream, an idea; sometimes it is just to buy an existing business, maybe start a similar business or create something completely new. Growth in the number of businesses is generally a sign of a healthy economy and needs to be encouraged.
On July 26-28 the SmartHub Rockhampton is holding another of its Startup Weekends to help develop new business ideas. If you have an entrepreneurial interest stirring within register now with the SmartHub. You will be amazed what can be achieved within 48 hours.
While I may have bored you with statistics consider what would happen if one-quarter of local businesses just pulled up stumps today, what an impact that would have, yet without support be it financial, advice, even encouragement there are that many businesses out there that could easily fold, imagine the repercussions. Support local.