Small Businesses Worth Over A$500 Billion to Australian Economy - ASBFEO
(26 June 2023 – Australia) The economic contribution of small business to the Australian economy has topped half a trillion dollars, according to a report released today by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO).
The value of small business to the economy surged by 15 per cent in 2021/22 to A$506 billion and accounts for one-third of Australia’s GDP.
The Small Business Matters report shows that Australia’s 2.5 million small businesses provide jobs for 5.1 million people and employ 42 percent of all apprentices and trainees in training, nearly double the amount supported by a big business. Almost 98 percent of businesses in Australia are small businesses. Around 43 per cent of small businesses failed to make a profit and three out of four small business owners take home less than the average wage (75 percent).
“Small businesses are the lifeblood of our communities, and we celebrate the vital contribution they make to Australia’s prosperity, wellbeing, and community. This is a terrific opportunity to say thank you and show support to the small businesses who matter in our lives” the Ombudsman Bruce Billson said.
“Small business people come with varied ambitions, backgrounds and experiences. What they have in common is the entrepreneurial flare and desire to have a go.”
“We need to replenish and nurture the next generation of entrepreneurs, value self-employment and encourage and enable smaller enterprises and the livelihoods they make possible. We need to understand why it is not as appealing as it perhaps should be for younger Australians to own a small business?”
“Yet, the spirit that drives people to run a small business also makes them great advocates for and contributors to their community and they are more likely than the general population to volunteer for an organisation or group. Our small and family business owners and managers are great people and we salute the terrific contribution they make everywhere, every day.”