Business failures are on the rise, while new business formation is weaker, according to new research.Dun & Bradstreet reports that there were 13,023 business failures in the March quarter, compared with 12,383 in the March quarter last year and 12,170 in the December quarter. That is a 5.2 per cent increase year on year and a seven per cent increase quarter on quarter.The figures are based on liquidations and external administrations reported to the Australian Securities and Investments Commission, as well as businesses that were involuntarily deregistered and deemed insolvent at the time of closure.The Northern Territory recorded a 21.9 per cent increase in business failures year on year, while Western Australia recorded a 21 per cent increase, Queensland a 9.2 per cent increase, Tasmania a 7.2 per cent increase, Victoria a 4.8 per cent increase, The Australian Capital Territory a 3.1 per cent increase and New South Wales a 2.5 per cent increase.South Australia recorded a 6.3 per cent fall in business failures year on year. While business failures were up, new business starts were down. The number of new businesses created in the March quarter fell 2.1 per cent to 55,626, compared with the previous corresponding period.Dun & Bradstreet said all states and territories, except South Australia, experienced a fall in the number of new businesses over the 12 months.Australia had a total of 2.3 million businesses in the March quarter. The ratio of total businesses to failed businesses was 175 to one, compared with a ratio of 173 to one in the March quarter last year.