The Aussie state where small businesses have the highest ‘survival rate’

• AnyBusiness analysis shows that fewer than half of businesses that entered the Australian market in 2022/23 were still active by June 2026.
• NSW recorded the lowest survival rate at 48.0 per cent, with Queensland, Victoria and the Northern Territory also falling below half.
• South Australia, Western Australia and the Australian Capital Territory kept more than half of their entrants active, at 52.8, 51.2 and 50.4 per cent respectively.

Fewer than half of the businesses that entered the Australian market in 2022 were still active by June this year, with New South Wales (NSW) recording the lowest “survival rate” in the country.

Just 66,241 of NSW’s 138,093 entrants made it through, a rate of 48.0 per cent, according to a statement from business sales marketplace AnyBusiness, which analysed Australian Bureau of Statistics (ABS) data.

Tasmania topped the ladder, with 3,279 of 5,990 entrants surviving, the highest rate in the country at 54.7 per cent.

For Australians eyeing a business for sale, the gap is a prompt to dig into how a listing has actually traded and what will be left once the current owner walks away.

Survival requires a business to remain active at each annual check, and non-survival is not a count of insolvencies or failures, as exits can also reflect a sale, restructure, inactivity or a change in scope.

Nationally, 199,742 of 406,365 entrants were still active, a survival rate of 49.2 per cent, roughly three to four years after entry.

“A business can look attractive on paper, but buyers need to understand what keeps its customers coming back,” an AnyBusiness spokesperson said.

“If those relationships depend entirely on the current owner, the handover deserves just as much attention as the asking price.”

South Australia came second at 52.8 per cent, ahead of Western Australia at 51.2 per cent and the Australian Capital Territory (ACT) at 50.4 per cent.

Subscribe here for our FREE Tuesday and Thursday newsletter

Email address

Subscribe

Queensland, Victoria and the Northern Territory all finished below 50 per cent, at 49.5, 48.6 and 48.1 per cent respectively.

The ranking draws on the ABS’s Counts of Australian Businesses, including Entries and Exits, July 2022 to June 2026, released in August.

“These figures are a reason to ask better questions,” the spokesperson said.

“A state’s ranking cannot answer those questions for an individual business.”

Before you sign on the dotted line

AnyBusiness suggested buyers start with the financial records, going through the accounts, tax returns and cash flow with an accountant to get a clear picture of earnings and costs.

The platform also advised checking the lease and any contracts for expiry dates, transfer conditions and approvals required before a takeover.

Buyers should also map out the handover, including how customers, key staff and the owner’s daily duties will be managed once the sale goes through, AnyBusiness noted.