Failure rates

In 2011, 96% of the 2.1 million active business in Australia were small businesses  – with less than 20 staff – and accounted for nearly half of all employment…

The bad news is that survival rates for small businesses are very poor. In the period 2007-2011:

60% of sole proprietor (no staff) businesses failed;

40% of 1-4 person businesses failed;

35% of 5-19 person businesses failed; and

40% of small businesses were not profitable

Reserve Bank of Australia

Small Business: An Economic Overview, May 2012