Net Business Formation — methodology

What this metric measures

The difference between new business entries and total business exits each year. Positive values mean the business population is growing; negative means it is shrinking.

Why it matters: Net business formation shows whether entrepreneurial activity is outpacing closures, signaling underlying economic dynamism and confidence.

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

Higher is better

Trend window

120 months

Baseline

Last 10 years

{
  "mode": "absolute",
  "red_max": -50000,
  "green_min": 0
}