ASIC has released a report (pdf) covering information gathered from corporate
insolvencies between 2004 and 2007.

In profiling insolvent companies the report notes that 82% of insolvencies were companies with less than 20 employees.

The top 3 causes of company failure for 2006-2007 were:

• poor strategic management of business (2,944 or 43% of reports)
• Inadequate cashflow or high cash use (2,719 or 40% of reports)
• Trading losses (2,352 or 34% of reports)