Number of Townsville businesses grows 4.5 per cent to 12,486 in 2021-22

A North Queensland economist has revealed how many businesses have opened this year, but there is a looming issue which could spoil the party.

A lot of new businesses have opened and are looking for employees.

Statistics showing a 4.5 per cent increase in the number of businesses operating in Townsville in the past year is a positive sign for the economy and jobs, economist Colin Dwyer says.

But the recent hikes in interest rates with the possibility of more to come will impact on sentiment which could flow on to reduced business activity, Prof Dwyer said.

“There’s still a lot of businesses opening in Healthcare and Social Assistance — that’s the influence of the National Disability Insurance Scheme — and Construction is doing very well,” Prof Dwyer said.

The Australian Bureau of Statistics has released data on business entries and exits for 2021-22 compared with the previous year.

It shows Townsville had 12,486 businesses at June 30, up by 539 or 4.5 per cent on the previous year.

Prof Dwyer said a range of business sectors contributed to the increase.

Economist Colin Dwyer with his book Our Fair Share. Picture: Alix Sweeney

In Healthcare and Social Assistance, the business count increased by 105 to 1265, while 93 additional businesses traded in Construction which also had the highest count of 2482 businesses.

The next highest sector by number was in Rental, Hiring and Real Estate Services which was 1422, 62 higher than the previous year.

Prof Dwyer said the business count reduced in just one sector — Transport, Postal and Warehousing — where it reduced by 49 to 947.

Of businesses with annual turnover of $10m or more, Construction dominated with 35, followed by Retail Trade with 31 and Professional, Scientific and Technical 15.

On turnover between $5m and $10m, 51 were in Construction and 40 Retail Trade.

Prof Dwyer said the increase in businesses was a positive sign for the economy and confidence in the largest city in Northern Australia.

“The Townsville economy and business community showed great resilience during the pandemic and has recovered strongly,” Prof Dwyer said.

“Solid confidence in the business sector is essential for a healthy regional economy. The growth in people willing to establish businesses in Townsville is a positive sign that sentiment was solid in the year to June 2022 and a positive signal for the future.”

Prof Dwyer is an Adjunct Professor at James Cook University.

Originally published as Number of Townsville businesses grows 4.5 per cent to 12,486 in 2021-22