Births and Deaths
SMEs account for the majority of all births and deaths
Enterprise births and deaths are dominated by firms employing less than 5 FTEs, accounting for over 90 percent of total number of births and deaths to 2002, as well as in previous years.
Given that new small businesses were the single greatest contributor to job creation over 1995 to 1997, a high rate of enterprise births amongst small firms should be encouraged. In addition, a high number of deaths is not in itself cause for concern, as long as deaths of economically viable firms are minimised.
Figure 12: Enterprise Births 2002
| FTE Size Category | No. of Births |
| 0-5 | 47,300 |
| 6-9 | 1,870 |
| 10-19 | 970 |
| 20-49 | 280 |
| 50-99 | 70 |
| 100 + | 50 |
Figure 13: Enterprise Deaths 2002
| FTE Size Category | No. of Deaths |
| 0-5 | 39,860 |
| 6-9 | 1,840 |
| 10-19 | 970 |
| 20-49 | 350 |
| 50-99 | 70 |
| 100 + | 55 |
Enterprise births outnumbered deaths in 2002
The period 1999-2002 was a time of unusual activity for enterprise births and deaths. In 1999, the number of births fell, almost matching the number of deaths, before increasing sharply in 2000 when deaths fell slightly. In 2001, the number births fell again as deaths increased, resulting in a net decrease in the number of enterprises operating. In 2002 the series diverged resulting in a net increase in the number of enterprises, albeit much less pronounced than that which occurred in 2000.
Figure 14: Enterprise Births and Deaths, February 1998-2002
| | Births | Deaths |
| 1998 | 58,220 | 38,700 |
| 1999 | 50,730 | 47,820 |
| 2000 | 66,860 | 42,010 |
| 2001 | 47,320 | 48,280 |
| 2002 | 50,520 | 43,140 |
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