Enterprise deaths

Analyzing the death rate by different economic branches it can be revealed that the 2009 rate was higher (6.7%) in the services sector (sections G-S, NACE Rev.2, excluding 64.2 "Management activities of holding companies") than in industry and construction (sections B-F; 4.3%). At the level of NACE Rev.2 sections, above-average death rates were recorded in the activities “Arts, Entertainment and recreation” (10.8%), “Education” (8.5%) and “Information and communication” (7.3%). The lowest shares of deaths enterprises were registered in the activities “Water supply; sewerage, waste management and remediation activities” (4.0%), “Manufacturing” (4.1%) and “Human Health and Social work activities” (4.4%).

An examination of enterprise deaths in 2009 by legal form shows that sole proprietorships did have the largest share (around 82%); partnerships and other legal forms are in the second place (around 10%) and limited liability companies made up the remaining share (around 8%). Also sole proprietorship enterprises had the highest death rate (7.5%), whereas the rate was 4.3% for partnerships and only 2.4% for limited liability companies. With regard to the average number of persons employed per enterprise death, the number for sole proprietorships (1.6) is relatively low compared with that of limited liability companies (3.0) and of partnerships and other legal forms (3.1).

Analysis of enterprise deaths in 2009 by employee size class show that almost two thirds of the enterprises that closed down (65.1%) were in the "0 employees" size group; these enterprises also had the highest death rate (10.4%). Around one third (31.1%) of deaths were enterprises with between 1 and 4 employees, while enterprises with between 5 and 9 or with 10 or more employees accounted for only around 3.8% of all closed enterprises in total.

A higher-than-average death rate among the provinces had Vienna (6.6%). In 2009, it was 0.5 percentage points above the average death rate. In percentage terms 26.7% of the enterprise deaths accounted for Vienna. Lower Austria had 16.3% of the deaths; Styria was on the third place (14.3%). Very low death rates existed for Vorarlberg (5.2%), Salzburg (5.4%) and Upper Austria (5.6).

The results by gender show that around two thirds (66.1%) of the sole proprietorships closed down in 2009 were owned by men. The death rates of enterprises which were founded by women was 9.0% and therefore higher than the male founders closing rate (7.0%).

Development of enterprise deaths over time (2004 to 2009)

In total, enterprise deaths increased by more than one quarter (around 26%) from 2004 to 2009. However, the number of enterprise deaths was below that of enterprise births in every year. In 2004, the fewest enterprises were closed down (19 402), whereas in 2008 (year of the economic crisis), the number of enterprise death had its peak (26 309). Regarding the development by economic activity in this five-year observation period, the increase in the number of deaths was highest in the following branches: “Electricity, gas, steam and air conditioning supply” (+93.3%), “Human health and social work activities” (+87.9%) and “Financial and insurance activities” (+84.7%). An analysis by legal form illustrates that sole proprietorships that died increased more than on average over this time period (+41.2%). By contrast, the number of deaths that concerned partnerships (and other legal forms) or limited liability companies declined from 2004 to 2009 (-17.9% and -12.5% respectively). Observing the trends of enterprise deaths by employee size class it is shown that the number of cessations without employees highly (+43.1%) increased. Enterprise deaths that had between 1 and 4 employees only slightly increased (+6.3%). The number of closures by enterprises with between 5 and 9 or with 10 or more employees decreased on average (-15.0% and -23.7% respectively). The results by gender (for sole proprietorships only) reveal that the number of closures owned by women increased higher-than-average over time (+45.1% vs. +39.3% for sole proprietorships owned by men).