Australia’s net new businesses growth rate up 0.4 per cent

RSM_Bird_Cameron_Logo@2xJune 17, 2014 – Australia’s net rate of business creation grew by just 0.4 per cent in the year to 2013*, with the creation of 9,000 new companies, according to a global survey of official data by RSM, the seventh largest global network of independent audit, tax and advisory firms.

Enterprise births and deaths in Australia diverged in 2008-09, producing net company formation of over 74,000 companies. Rates then converged on a downward trend, with new company entries marginally surpassing exits between 2010 and 2012.

Neil Cribb, Partner and National Head of the Turnaround & Insolvency Group of RSM Bird Cameron, said: “Notwithstanding an economic environment with falling interest rates to historical lows in the first quarter of 2013/14, going forward we would expect to see a continuing decline in net business creation.  This comes as a result of the continuing pressure of high operating costs for most Australian businesses (particularly when compared to our Asian neighbours). A particular case in hand the manufacturing sector as evidenced by the necessary restructure of the Australian motor vehicle industry, which has struggled to be competitive over an extended period even with extensive industry and government consultation and support.”

Construction was the leading source of business churn in Australia from 2008-2012, with more than 400,000 company births and deaths. Manufacturing registered the lowest aggregate business churn with 83,000 births and deaths.

Financial services accounted for the highest level of net business formation (nearly 18,500 organisations) from 2008-2012, a noteworthy achievement given the weak performance of financial start-ups in other OECD countries.

Measured by company size, micro enterprises (1-4 employees) exhibited the highest level of new business formation in Australia in 2008-12. Sole proprietorships (no employees) and small enterprises (20-199 employees) incurred net company losses
during the period. Large enterprises (200+ employees) displayed virtually no change in net business formation.

New company survival rates in Australia show considerable differences between
industries. One-year survival rates of Australian companies founded in 2008 ranged from 89.3 per cent in agriculture to 81.9 per cent in hospitality. Industry survival rates then diverged. By 2012, only 53.6 per cent of hospitality companies formed in 2008 had survived against 73.1 per cent of health care companies.

In 2011-12, the G7** countries were led by France in term of net new business births. France exhibited a 16.7 percent growth rate (588,000 new companies), the fastest of the 38 countries RSM reviewed. A major contributor to this success was France’s “Auto Entrepreneur” programme, launched in 2009 to stimulate company start-ups.

The USA, Japan, Germany and the UK all showed modest growth rates of 0.6 per cent, 0.8 per cent, 1.1 per cent and 1.2 per cent respectively, while Italy declined by 0.3 per cent and Canada dropped by 13.6 per cent, the worst performance all 38 countries.

RSM’s research also shows that the net rate of business creation among the G7 economies has increased relative to the BRICS*** countries. Between 2011 and 2012, the G7 countries posted a 1.9 per cent growth in the active company register, an addition of 531,000 businesses, versus a CAGR of only 0.8 percent from 2007-2011. By comparison, the BRICS generated 1.2 million new enterprises from 2011-2012, a growth of 4.9 per cent compared to a CAGR of 5.8 per cent net new business growth rate from 2007-2011.

The BRICS were led by China (9.1 percent). Brazil grew by 3.4 per cent but the other economies all showed negative growth: Russia (-0.4 percent), India (-3.2 percent) and South Africa (-10.0 percent).

Jean Stephens, Chief Executive of RSM, comments: “Entrepreneurs all over the world are continuing to start businesses, the most active sectors being wholesale and retail trade, and professional services, which have relatively low barriers to entry. However, nearly a third of the countries we reviewed exhibited a decline in the number of active enterprises. Creative destruction and the reallocation of capital to more efficient existing and new businesses will have a large part to play in this process but the global economy remains fragile. The watch phrase for the next year must be no more than cautious optimism as individuals and companies respond carefully to government actions and macro indicators.”

ENDS

* 2012 (most recent globally comparable data available; Australia data from the Australian Bureau of Statistics)
** Canada, France, Germany, Italy, Japan, UK and US
** Brazil, Russia, India, China and South Africa

About RSM International
RSM International is the seventh largest network of independent audit, tax and advisory firms, encompassing over 100 countries, 700 offices and 32,000 people internationally. The network’s total fee income is US$3.7 billion.

In March 2013, RSM was awarded the prestigious Editor’s Special Award for Global Initiative of the Year at the International Accounting Bulletin annual awards. The award recognises the outstanding achievement of the RSM network for its global initiative – RSM World Day – which was praised for being a unique and powerful cross-network initiative that enhanced both employee and client engagement. The judges highlighted the campaign as a shining example of how to successfully connect independent member firms around the world under a common vision and set of values.

RSM International actively engages in promoting and celebrating the very best in entrepreneurship, championing the role of the entrepreneur in today’s world economy. RSM International is the lead sponsor and corporate champion of the European Business Awards promoting commercial excellence and recognition of entrepreneurial brilliance.

RSM International is a member of the Forum of Firms. The objective of the Forum of Firms is to promote consistent and high quality standards of financial and auditing practices worldwide

RSM is the brand used by a network of independent accounting and advisory firms each of which practices in its own right. RSM International Limited does not itself provide any accounting and advisory services. Member firms are driven by a common vision of providing high quality professional services, both in their domestic markets and in serving the international professional service needs of their client base.

2014 marks an exceptional year for RSM International as it celebrates its 50th Anniversary.

www.rsmi.com

RSM Bird Cameron celebrates with its global network, RSM International, on their 50th anniversary

RSM_Bird_Cameron_Logo@2xMay 22, 2014RSM Bird Cameron, the Australian independent member firm of leading audit, tax and advisory network, RSM International, is joining in the global celebrations in honour of the network’s 50th anniversary.

Since its foundation in 1964, RSM has grown to become a network with member and correspondent firms in 108 countries who employ over 32,000 people across more than 700 offices. RSM is the sixth largest provider of tax services globally and has top ten member firms in all key economies, including the USA where it is the 5th largest firm, and in China where its member firm is part of the country’s third biggest national firm. RSM also recently announced the admission of Baker Tilly, the 7th largest firm in the UK, to its network.

Running from May through to the RSM World Conference at the end of October, the Global 50th Anniversary Tour will see celebratory events taking place at the network’s regional conferences in Asia Pacific, Middle East and North Africa, Latin America, and Europe, as well as at the RSM Academy and RSM ITAX Academy.

On 18 September, RSM World Day – the network’s annual day of internal and external activities, events and CSR initiatives focused on ‘Connected for Success’ – will see over 70 countries commemorating the occasion with special 50th Anniversary party activities.

Jean Stephens, CEO of RSM International, said: “Celebrating RSM International’s 50th anniversary this year is an important milestone for our network and members. I am honoured and delighted to work with such a strong group of professionals and firms across the world. This is a time for us to thank our clients and colleagues of the past and present for the contributions that every single person has made to the success of the RSM network.”

Jean continued: “We are very proud of the enormous diversity of cultures and backgrounds of people within RSM and of the driving force within the network to provide the very best services to our clients. What makes this possible and binds us together is our relentless focus on having the right people, providing high quality solutions, developing cross-border business opportunities and continuing to build our brand globally.”

For the year ending 31 December 2013, RSM member firms’ total fee income was US$3.7billion, representing a 5% like-for-like increase in local currency terms on its 2012 results. In the past year the network has grown its cross-border referrals by 17%.

RSM has seen significant expansion in the past twelve months with new member firms and correspondents in Brazil, Dominican Republic, Estonia, Finland, Ghana, Isle of Man, Japan, Qatar, Swaziland, Sweden and the UK.

The network accepted the 350th graduate into its RSM Academy programme in 2013 and launched the RSM ITAX Academy, a two-year programme aimed at developing future leaders in international tax.

Stephens added: “We are committed to helping our client base prosper, whether it is a young entrepreneurial business, or a leading multi-national organisation, and look forward to building our network into new countries in order to be in the best position to serve our clients at the highest level wherever they have business needs.”

Kim Hutchinson, national chairman, RSM Bird Cameron, added, “As a founding member, we are very proud to be part of the RSM network and look forward to continuing to play our role in its continued success over the coming years.”

ENDS

About RSM Bird Cameron
RSM Bird Cameron is the largest mid-tier accounting firm in Australia with national ownership and profit sharing and offers a full range of specialist advisory services, including business consulting and advisory, assurance and advisory, taxation consulting, corporate consulting and turnaround and insolvency. RSM Bird Cameron is a core member firm of RSM International, the seventh largest network of independent accounting and consulting firms in the world.

About RSM International
RSM International is the seventh largest network of independent audit, tax and advisory firms, encompassing over 100 countries, 700 offices and 32,500 people internationally. The network’s total fee income is US$3.7 billion.

In March 2013, RSM International was awarded the prestigious Editor’s Special Award for Global Initiative of the Year at the International Accounting Bulletin annual awards. The award recognises the outstanding achievement of the RSM network for its global initiative – RSM World Day – which was praised for being a unique and powerful cross-network initiative that enhanced both employee and client engagement. The judges highlighted the campaign as a shining example of how to successfully connect independent member firms around the world under a common vision and set of values.

RSM International actively engages in promoting and celebrating the very best in entrepreneurship, championing the role of the entrepreneur in today’s world economy. RSM is the lead sponsor and corporate champion of the European Business Awards promoting commercial excellence and recognition of entrepreneurial brilliance.

RSM International is a member of the Forum of Firms. The objective of the Forum of Firms is to promote consistent and high quality standards of financial and auditing practices worldwide.

RSM International is the brand used by a network of independent accounting and advisory firms, each of which practices in its own right. RSM International Limited does not itself provide any accounting and advisory services. Member firms are driven by a common vision of providing high quality professional services, both in their domestic markets and in serving the international professional service needs of their client base.

www.rsmi.com

RSM International moves up to sixth place in Global Industry Rankings

RSM is one of only two of the top 10 accountancy networks to report growth

Sydney, February 17, 2010 – RSM International, a worldwide network of independent accounting and consulting firms, which includes Australian member firm RSM Bird Cameron, has risen to sixth place in the global accountancy industry league tables according to a survey released by the International Accounting Bulletin.

Measured on fee data, RSM International reported a growth rate of 8 per cent in 2009, with a total fee income of US$3.87 billion.

Kim Hutchinson, CEO, RSM Bird Cameron and board member of RSM International, said, “RSM Bird Cameron has been a proud member of RSM International since 1985, and we are thrilled that the group has moved up in international rankings – a result that can only be attributed to the network’s strong leadership and aggressive growth strategies.”

Jean Stephen, CEO, RSM International, added, “Our new ranking demonstrates the hard work of all member firms during a challenging year for the global economy.”

New RSM member firms in Japan, Ireland, Poland, Tanzania and Kenya, along with a recent UK merger, which formed RSM Tenon, helped the network move up one space into sixth place.

Organic growth from existing member firms, particularly in the Asia Pacific region, further boosted revenues. Singapore and China led the way, reporting growth figures of 31 per cent and 17 per cent, respectively.

RSM is currently represented by independent members in 76 countries and brings together the talents of 3,150 partners and over 32,000 individuals in 736 offices worldwide.

About RSM International
RSM International is a worldwide network of independent accounting and consulting firms. RSM International and its member firms are separate and independent legal entities. RSM International does not itself provide accounting or consultancy services. All such services are provided by affiliate members practising on their own account.

The network’s total fee income of US$3.8 billion places it amongst the top six international accounting organisations worldwide. Affiliate member firms are driven by a common vision of providing high quality professional services, both in their domestic markets and in serving the international professional service needs of their client base.

RSM International is a member of the Forum of Firms. The objective of the Forum of Firms is to promote consistent and high quality standards of financial and auditing practices worldwide.

About RSM Bird Cameron
RSM Bird Cameron is the largest mid-tier accounting firm in Australia serving the middle market with technical and commercial expertise over the full range of specialist corporate and business advisory services including assurance and advisory, corporate finance, taxation consulting and turnaround and insolvency.

RSM Bird Cameron is a core member firm of RSM International, the sixth largest accounting and consulting organisation in the world.