Enterprise births

Regarding the birth rate by different economic branches, the 2009 rate was – as expected – highest (7.5%) in the services sector (sections G-S, NACE Rev.2, excluding 64.2 "Management activities of holding companies") whereas it was below average (5.8%) in industry and construction (sections B-F). At NACE Rev.2 section level, high birth rates were recorded in the economic branches of "Other service activities" (10.6%), “Financial and insurance activities” (8.1%) as well as in “Transportation and storage” and “Real estate activities” (8.0% each). The lowest birth rates were recorded in “Manufacturing” (4.1%) and in "Mining and quarrying" (4.9%). Measured in absolute counts, the activities „Wholesale and retail trade; repair of motor vehicles and motorcycles” (5 355), “Professional, scientific and technical activities” (5 147) and “Accommodation and food service activities” (3 579) had the highest number of births in 2009.

An analysis of enterprise births by legal form showed that the majority (around 69%) of enterprises born in 2009 were sole proprietorships (19 205). 4 867 births (17.4%) were limited liability companies, while new enterprises in the form of partnerships and other legal forms (3 898 or 13.9%) were less frequently established. With 7.2%, the birth rate was highest among sole proprietorships (vs. limited liability companies: 6.1%, partnerships and other legal forms: 6.8%). With regard to the jobs created per newly born enterprise, an equal number was created per enterprise on average by limited liability companies and by partnerships and other legal forms (3.5 each). Sole proprietorships recorded an average of 1.9 jobs per newly created enterprise.

The results by employee size classes reflect the predominantly small business structure of the Austrian economy: more than half (51.2%) of all enterprises born in 2009 had no employees. A further 41.1% (of new enterprises) had from 1 to 4 employees at the time of birth; only 5.1% and 2.6% were created with between 5 and 9 or with more than 10 employees, respectively. Active enterprises had mainly between 1 and 4 employees (41.4%), followed by those with no employees (37.7%).

Vienna was 2009 in relation to the other provinces the province with the largest number of enterprise births (23.1%). The second largest enterprise birth activities were in Lower Austria (17.0%) followed by Styria (14.8%). Highest birth rates were recorded for Styria (7.5%), Lower Austria (7.4%) and Burgenland (7.3%). The lowest birth rate can be found in Vienna and Carinthia (6.5% each).

The results by gender of the owner (regarding sole proprietorships only) show: 63.7% of the new sole proprietorships are owned by men. The birth rate by enterprises owned by women was with 9.2% higher than the one of the men (6.4%).

Development of enterprise births over time (2004 to 2009) 

From 2004 to 2009 the number of new enterprises declined by 2.0%. The fewest enterprise births were recorded in 2008 (year of the economic crisis: 26 330) whereas 2005 showed the highest number of enterprise births (29 608). Regarding the development in this five-year observation period by economic activity, the number of births was growing in the following branches: “Mining and quarrying” (+58.3%), “Real estate activities” (+35.9%), “Human health and social work activities” (+32.3%) and “Other service activities” (+16.7%). In the economic sector “Electricity, gas, steam and air conditioning supply” enterprise births declined most (-26.7%). An evaluation of the development of births by legal form illustrates that enterprises created as sole proprietorships or partnerships (and other legal forms) declined over this time period (-6.6% and -8.3% respectively), whereas the number of newly created limited liability companies increased higher-than-average (+30.2%). Observing the trends of enterprise births by employee size class it is shown that births with no employees declined by 13.0% over time. Those that had from 1 to 4 or from 5 to 9 employees grew considerably (+14.2% and 10.6% respectively). The number of births with 10 or more employees only slightly increased from 2004 to 2009 (+0.3%). Compared to other provinces, Salzburg (+8.7%), Tyrol (+4.1%) and Upper Austria (+3.5%) recorded the highest increase in the number of births over the five-year observation period. In Vienna, Carinthia and Vorarlberg fewer enterprises were created (-13.1%, -2.8% and -2.5% respectively). The results by gender over time show that the number of newly born sole proprietorships owned by men decreased by 11.9%. In contrast, those created by women increased by 4.4% over the time period from 2004 to 2009.