smh.com.au
Regional WA Businesses Outperform Perth in First-Year Survival Rates
A Brainiact study using Australian Bureau of Statistics data shows that small businesses in regional Western Australia, particularly in towns like Gnowangerup, have a higher first-year survival rate than those in Perth, due to factors such as community support, tourism, and lower operating costs; only 74% of 365,000 businesses launched nationally in 2021 survived their first year, with half remaining three years later.
- How do industry type and location affect the likelihood of a small business surviving past its first year in Western Australia?
- The success of regional businesses, particularly in the Wheatbelt (82.2% survival rate), is attributed to lower operational costs, strong community networks, and fewer competitors. Conversely, Perth's north-east and south-west suburbs show lower survival rates due to high competition, increased costs, and limited local spending. These areas are also dominated by industries with statistically higher failure rates for new businesses.
- What factors contribute to the significantly higher survival rates of small businesses in regional Western Australia compared to those in Perth?
- A study by Brainiact reveals that small businesses in regional Western Australia exhibit higher survival rates beyond their first year compared to those in Perth. Gnowangerup, a small town, recorded the highest success rate in WA and the third-highest nationally. This success is linked to factors such as strong community support and tourism.
- What measures could be implemented to enhance the survival prospects of small businesses in areas like Perth's north-east and south-west suburbs, given the challenges they face?
- The disparity in small business survival rates highlights the significant influence of location and industry on business viability. Regional areas benefit from factors that mitigate risks associated with new ventures. Future studies should investigate the long-term sustainability of these trends and explore strategies to improve survival rates in high-risk areas.
Cognitive Concepts
Framing Bias
The article's framing emphasizes the positive aspects of regional business success and the negative aspects of Perth business failure. The headline itself highlights the disparity. The inclusion of positive quotes from regional business owners and negative quotes from a Perth business owner further reinforces this framing. This framing could lead readers to oversimplify the situation and underestimate the challenges faced by regional businesses or the successes of Perth businesses.
Language Bias
While largely neutral, the article uses language that subtly favors regional businesses. Phrases like "thrived," "strong industries," and "bolstering their ability to endure" are used to describe regional areas, while terms like "lowest survival rates," "high failure rates," and "limited local consumer spending" describe Perth. More neutral language could be used to maintain objectivity.
Bias by Omission
The article focuses heavily on the success of regional businesses and the struggles of Perth businesses, but it omits discussion of other factors that might contribute to business survival rates, such as access to funding, government support programs, and the overall economic climate. It also doesn't explore the types of businesses that succeed or fail in each region. While it mentions tourism and agriculture, a broader analysis of industry types and their influence would be beneficial. The limited data on online businesses (such as Erin Follington's) does not fully represent the challenges and opportunities facing all business types.
False Dichotomy
The article presents a somewhat false dichotomy by contrasting the success of regional businesses with the failure of Perth businesses, without acknowledging the diversity within both regions. Not all regional areas are equally successful, and there are certainly thriving businesses within Perth. The focus on a contrast between "country" and "city" simplifies a complex issue.
Gender Bias
The article features two women business owners, Kayla Groves and Erin Follington. While both are given voice, their experiences are used to illustrate the broader points of regional vs. Perth business success/failure. There is no overt gender bias in the language used to describe them or their businesses, although the sample size is small, and a larger study would be needed to make conclusive statements about gender representation within the data.
Sustainable Development Goals
The article highlights the higher survival rate of small businesses in regional Western Australia compared to Perth. This positive trend contributes to decent work and economic growth in these regions by supporting local employment, fostering entrepreneurship, and boosting economic activity. The success of businesses in sectors like agriculture, forestry, and tourism further strengthens economic growth in these areas. Conversely, the lower survival rate in Perth's suburbs indicates challenges to decent work and economic growth in those areas.