The number of small businesses in Australia is surprising. Here’s why there are so many.
Ever wondered how many small businesses there are in Australia? Turns out, it’s a staggering number.
According to the Australian Bureau of Statistics (ABS), there are over 2.5 million small businesses in Australia – a whopping ~98% of all companies in the country.
In her upcoming book, The Business Bible, finance expert Victoria Devine breaks this number down even further. Of these small businesses, ’61 per cent are sole traders, 27 per cent are micro-businesses, and 9 per cent have a small team,’ explains Victoria.
‘Despite their size, Aussie small businesses punch above their weight when contributing to our economy,’ she adds. ‘In 2022 – 2023, small business added nearly $590 billion – a third of its value – to Australia’s GDP (gross domestic product).’
But why are there so many small businesses in Australia? It turns out that there are a lot of upsides to this kind of business structure in Australia, both financial and personal.
Benefits of running a small business in Australia
As Victoria herself puts it, the list of upsides to starting a small business in Australia ‘is longer than the queue for brunch!’
Upside #1: Government support
One great reason to consider opening a small business in Australia is because of the many grants and incentives dedicated by the government towards innovation and diversity. ‘Australia is known for its strong economy, supportive government initiatives and a community that cheers on the underdog,’ says Victoria. ‘It’s a place where innovation thrives and diversity is celebrated, supported by government grants, tax incentives and business support programs.’
If that’s not enough to convince you, consider the fact that operating a business in Australia comes with some clear guidelines – making it easier for entrepreneurs to ensure they’re doing right by themselves and the law. Given Australia’s ‘robust legal system and clear regulations, you can feel safe knowing that your business baby is protected.’
Upside #2: Community support and flexibility
Flexibility is a huge motivator for many entrepreneurs, and for good reason. Running your own business not only means choosing your own hours, but it also means that you get to choose who to engage with.
Luckily for us in Australia, Australians love to support one another. ‘The “Aussie battler” is a revered part of our national identity, expressing itself through respect for the small businessperson – typically tradies and farmers – with their risk-taking and independence highly admired,’ explains Victoria. ‘Small business is often seen as the heart of the community and is supported by locals who consider it “their own”.’
In addition to the collaborative spirit, this sense of community also serves a practical purpose for those undertaking a small business venture. ‘Communities also provide plenty of places where we can work, from free local libraries offering heaps of assistance to affordable, flexible co-working spaces dotted everywhere.’
Upside #3: Personal support
While it might seem daunting to strike out on your own, Australian entrepreneurs are lucky to have a thriving, wholesome community of other small business owners to tap into.
‘There are so many of us who want to lift each other up as we’re all going through different but relatable struggles,’ says Victoria. ‘Although I run finance-focused businesses, I have friends across all industries.’
Beyond business, this is also a bonus for your personal life – after all, who doesn’t want a few more friends? ‘When you start out, you think it’s going to be really hard to make friends but it’s actually a warm, welcoming community to be involved in . . . because we are a small country compared to somewhere like America, you don’t feel as overwhelmed or as swamped by the competition – a tiny fish in a giant ocean.’
For more insight into starting your business, check out The Business Bible, out 26 November 2024.