Business Exits — methodology

What this metric measures

Total number of businesses that ceased trading each year, including voluntary closures, mergers, and all other forms of exit. This is distinct from insolvency — most business exits are voluntary.

Why it matters: Fewer business exits signal a healthier environment for businesses to survive and grow. Combined with entries, net formation shows whether the business population is growing or shrinking.

Source & provenance

Publisher

ABS

Update frequency

annual

Licence

CC BY 4.0

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How the score is computed

The score is a 0–100 normalisation of the latest observation, compared to a baseline window. The traffic-light rating (RAG) reflects both the absolute level and the recent trend.

Direction

Lower is better

Trend window

120 months

Baseline

Last 10 years

{
  "red_min_pct_of_baseline": 110,
  "amber_max_pct_of_baseline": 110,
  "green_max_pct_of_baseline": 95
}