The Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, has raised concerns about the decline of Australia’s small-business sector.
The Ombudsman highlighted the narrowing share of GDP and employment opportunities contributed by small businesses in Australia. In 2006, SMEs contributed 40 per cent of GDP and employed over half (53 per cent) of private-sector workers. Today, they contribute 33 per cent of GDP, and employ 42 per cent of the private workforce.
“This is a worrying trajectory. We are sleepwalking into a big corporate economy,” said Billson.
Pointing to figures from the ABS, the Ombudsman called attention to the sluggish employment growth in the small-business sector.
The number of businesses employing their first employee is at a record low. Just 3 per cent of self-employed business owners became employers in the 2023-24 financial year.
Additionally, payroll jobs in small businesses declined by a staggering 8.1 per cent over the same period.
The decline of small business has been a long-term trend, but times are particularly tough right now.
“Rising input costs and frugal customers continue to challenge margins, profitability and viability,” Billson added. “The ‘business of running the business’ is getting ever more demanding.”
Billson stressed that help is available in times of challenge.
“ASBFEO is a key part of an extensive network of support that includes State Small Business Commissioners; Small Business Debt Helpline; New Access for Small Business Owners (NASBO) for emotional wellbeing; Australian Financial Complaints Authority; Telecommunications Industry Ombudsman; Digital Solutions; Small Business Cyber Resilience Service; Cyber Wardens program; and numerous Federal regulators ready to help,” he said.
This article was first published on sibling website Inside Small Business.
