High new business growth rate in Australia
Australian new business growth amongst world's best
Wednesday 8th February 2012
Over the last five years Australia had a higher new business growth rate than all but two G8 countries and ranked sixth on a list of 19 developed nations, according to a new study (pg 2).
The research, conducted by respected international accounting and consultancy network - UHY looked at new business registrations for a five years period in 19 countries across UHY's international network (including the G8 and key emerging BRIC economies of Brazil, Russia, India and China).
In the countries examined, the study revealed Australia was one of the best performing nations for creating new business during the global financial crisis with a new business startup growth rate 6.5 percent above the global non-BRIC average.
It also highlighted the negative effect the GFC had on developed countries in new business creation. On an international scale Australia out performed every G8 nation except France and Russia and recorded over 13 percent higher rates of new business growth than two of the world's biggest economies - the U.S and Japan - who both experienced negative new business startup growth rates along with the UK, Italy and Germany in the five year period.
Business Advisory Specialist with UHY Haines Norton Australia, Rowan Wallace said the data exposed a staggering difference between developed countries and emerging economies with only France, Australia and Russia bucking the trend with noteworthy new business growth among developed economies.
"Australia has been largely insulated from the financial crisis which as cut funding lifelines to small businesses in so many other industrialised nations," he said.
"couples with the natural resources boom, the Australian economy continues to be resilient to global pressures, but that is not to say more could be done to boost our business competitiveness. As ever taxes and red tape are the major concerns small businesses have.
"A successful new business growth policy can be found in France - one of the best performing countries in the study. It saw a sizeable increase in new business creation following the introduction of business tax exemptions for the first two years for small business startups."
Whilst Australia does have some tax concessions for micro businesses, they are not to the same extent of providing tax exemptions for startups.