Australia is renowned for having a large number of family-run and small businesses. In order to provide an updated report on small businesses and family enterprises in Australia and its economy, this report is supported by both the Australian Government and ancillary non-governmental organizations.
The Small Businesses of Australia report that their market share is growing and they are working to stay ahead of the curve. In this article, we will take a look at how small businesses in Australia are doing and what strategies they are using to grow their businesses.
What is the Small Businesses of Australia?
The Australian Small Businesses Association (ASBA) is a national body that connects small businesses in Australia. It was established in 2009 and has responsibility for the development and proclamation of the Small Businesses Act 1991, as well as providing resources and advice to its members. The ASBA’s target audience is small business owners, employees, and investors.
Australian Small Businesses Association’s markets are:
– Gold Coast
– Sunshine Coast
What are the Small Businesses of Australia’s Markets
The size of the Australian Small Businesses Association’s markets is diverse, with a range from Sydney to Melbourne and Perth to Canberra. The main reasons for this are that these cities have large populations and economies, and as a result, there are more opportunities for small business owners to find an expanding market for their products and services. In addition, there is a growing number of small businesses in each city, which creates a better opportunity for businesses to connect with customers and grow their customer base.
What is the Small Businesses of Australia’s Role in the Economy
The role of small businesses in the Australian economy is Vital to Their Survival and Growth. As such, they play an important role in the economy by providing jobs, revenue generation, and economic development. Many small businesses provide essential services such as retail sales, catering, construction, accounting/finance, information technology, health care/wellness, or manufacturing. Additionally, many small businesses areimble enough to start up their own industries and compete against larger companies on a global scale.
What are the Small Businesses of Australia’s Strategies
Small businesses in Australia are diverse in their strategies and approaches to business, which can be seen in their different markets and industries. Some common strategies for small businesses include:
– fusing together different products or services to create a new product or service
– expanding into new markets or jurisdictions
– developing innovative methods of marketing or selling products or services
– working with suppliers and partners to increase efficiency and creativity
Market Share of Small Business in Australia
Australian small businesses and family businesses make up more than ninety-five percent (95%) of all businesses in the country, serving as the “brain box” of the economy. A total of $418 billion, or more than 32% of the country’s GDP, was contributed by small businesses and family enterprises in 2018/2019. Australia has created jobs for about 5 million people in terms of employment (both with and without the aid of Australian small business loans). Australia became one of the countries with the highest employment rates as a result. Even so, their survival rate is still considerably lower than the combined rates of medium and large businesses.
About 97% of all businesses established in Australia are small businesses or family businesses. 0.2% of businesses are large, and 2.5% are medium-sized. Out of the total 97% of businesses, 65.5% have no employees, and 31.8% have fewer than 20. The number of businesses in the nation is roughly 2,361,778 (or 2.4 million). From June 2018 to June 2019, there were over 50,000 more set-ups.
Small businesses employ fewer than 20 people, and this information is used to calculate their size in terms of employment.
62.8% of all businesses are sole proprietorships, which do not employ anyone. 25.7% of all businesses are micro businesses, which are also classified as small and family businesses and have 1 to 4 employees. The remaining portion (which employs between 5 and 19 people) makes up 8.9%. Small businesses and family businesses with the fewest employees thus dominate the business market.
There are approximately 56,835 medium-sized businesses (employing 20–199 people) and 4,271 large-sized businesses (employing over 200 people).
Australian SMEs are ranked according to their annual revenue, which must be $10 million or less. According to this, small businesses account for 98.4% (with revenues under $10 million), while large corporations make up the remaining 1.6%. This amounts to a total of 37,464 businesses out of 2,375,753 businesses overall. In Australia, 592,896 businesses (or 25%) have annual revenues of less than $50,000. 810,470 small businesses (34.1%) have a revenue range of $50k and under. 806 648 companies (33.9%) have annual sales of $200k to $2m or more. The majority of small businesses contribute less than $2,000,000 ($2,000,000) annually to the Australian economy. However, this information does not include companies that have not registered for GST (which means the numbers could be underestimated).
Domestic product, or GDP (GDP)
Value-added, or the total value of all the finished goods and services supplied to the national economy, is how small businesses contribute to the GDP of a nation. As of May 2020, Australia had a total net worth of over $1,289 billion ($1,289,280 million). Over 32% of Australia’s total GDP, or about $418 billion, was contributed by small and family businesses there. The $287 billion contribution from medium-sized businesses represents about 22% of the GDP of the entire country. The largest percentage contribution came from large businesses, accounting for about 54% ($584 billion) of the entire graph.
based on industries
The total value (GDP) of the Australian economy is significantly influenced by some sectors more than others. The sectors with a total value above $100 billion are detailed below, along with the percentage share of small businesses in each sector:
- Small businesses contribute about 11%, or a total of about $20 billion, to mining, which has the highest value of about $187 billion.
- technical, scientific, and professional services:
- With $136 billion, the second-largest contributing industry has a 42% share from small businesses in Australia.
- Construction: This industry generates $128 billion in revenue, with small businesses accounting for 56% of the total.
- Manufacturing: Small businesses account for 22% of the $112 billion total market value of this industry.
Small businesses in Australia made up about 33% ($173 billion) of the $528 billion total value of the sectors that contributed between $100 billion and $50 billion. Agriculture, forestry, and fishing small businesses and family enterprises made the biggest economic contributions to the nation. Australian SMEs account for about $24 billion (76%) of the $31 billion total.
Update on Employment
Despite a setback in 2017–18, SMEs have reclaimed their position as the top employer in the country. And they continue to have control over 41% of the business workforce in the country.
based on industry
Despite employing more than 4.7 million people nationwide, they don’t top every list. The list of industries that Australian small businesses have dominated is provided below;
- Agriculture, forestry, and fishing: About 359,000 people were employed by small businesses, which means 80% of the sector is being covered.
- A total of 314,000 people are employed in the rental, employment, and real estate services sector. According to the figure, they represent 75% of the industry.
- About 748,000 people are employed across the construction sector. According to the figure, they represent 67% of the industry.
- Other Services: This industry has about 321,000 workers overall. According to the figure, they account for 62% of the sector.
Employment as an apprentice or trainee
Small businesses (61% of the total) employed the most trainees and apprentices as of the end of 2019. According to the Australian government’s proportions, 61,000 new apprentices and trainees would be hired in the upcoming year.
The average score for the report on how many Australian SMEs passed the test after five years was given. Only about 772,711 (60%) of the 1.3 million companies that were founded five years prior to 2019 have survived. And even though this is more than half, the survival rate is still lower than the national average of 65%. 69% of those with fewer than four employees survived (405,838 survived out of 584,744 businesses). 78% was the highest survival rate for companies with 5 to 19 employees (152,968 survived out of a total of 197,164 businesses).
Women in the game
Data on the number of Australian businesses owned or run by women was provided by the Australian Bureau of Statistics’ labor force. Although the data wasn’t specifically for small businesses, the result can still be roughly accurate because small businesses account for more than 98% of the entire Australian business market. In the year 2000, 31% of the business world was dominated by women. In 2020, the charts have climbed to about 35%. (both full-time and part-time).
The COVID-19 and the ensuing year-long lockdown are the biggest problems that small businesses (as well as other businesses) are currently facing. As a result, the economy of the nation experienced its first recession in thirty years and a sharp decline in GDP. Additionally, since March 2020, many industries have experienced a continuous decline in operating conditions due to unfavorable circumstances like late payments and insolvency. To overcome these obstacles, many businesses looked for alternative Australian business lending services.
The 2019–2020 bushfire that ravaged Australia’s rural and regional areas posed another problem for its businesses. The economy experienced a further decline while millions of properties and lives were lost. The damage to small businesses increased to about 54%, costing the nation’s economy over $100 billion, according to the small business financial counseling support line.
List of Smes in Australia
- Jolleen Hicks, Aboriginal Insights, WA
- Goitom Tekle, African Style Haircut, SA
- Pirra Griffiths, Allerton Swimwear, NSW
- David McAuley, Andaha, NSW
- Meredith & Bill Whiting, Archer & Holland Jewellery, SA
- Stella Hui, Azure Entertainment, WA
- Erica Urquiaga, Baked by Erica, WA
- Franziska Iseli & Christo Hall, Basic Bananas, NSW
- gough, Beernuts Productions, QLD
- Carlissa Wolfe & Karyn Cassar, Benmar Farm, NSW
- Melissa Gibson & Warren Sanders, Buckle, NSW
- Emma Lovell, Cozigo, NSW
- Denyse McDonald, Currong Comestibles, NSW
- Danny & Shane Gramazio, D&S Quality Meats, SA
- Pete Wilson, Determined2, SA
- Aldo Grech, Essential Leadership, NSW
- Laura Madden & Juanita Mottram, Eve Renovations, QLD
- Flavia Tata Nardini, Fleet Space Technologies, SA
- Lorraine Gnanadickam, Food St., NSW
- Peter Foott, Foott Waste and Recycling, VIC
- Cameron Syme, Great Southern Distilling Company, WA
- Ann & Jeff Ross, Hive Haven, QLD
- Mandy Elliott, Hi-vis Kids, QLD
- Jo Harris & Lucy Glade-Wright, Hunting for George, VIC
- Alyx Stewart, Kee-Moh Snacks, VIC
- Antonette Golikidis, Little Innoscents, VIC
- Kathy & Ross Elliot, Little Vintage Bar and Van, VIC
- Adam Kallen, Made in Katana, SA
- Georgina Wilkinson & Gary Rogers, Margaret River Hemp Company, WA
- Alex Grant, Myriota, SA
- Ronit Robbaz-Franco, Opentable, NSW
- David Chitty & James Legge, Otherside Brewing Company, WA
- Pat & Sam Cawfield, Pearlcraft, VIC
- Frank Samson & Corinna Steeb, Prancing Pony Brewery, SA
- Anna Hopkins, Protein Bread Company, NSW
- Laura Furiosi, Rashoodz, QLD
- Alison Valenti & Sophie Musumeci, Real Entrepreneur Mums, NSW
- Kate Engler & Simon Thorne, Savage Panda, VIC
- Kym Clark, She’s Empowered, QLD
- Sarah Rose Bloom & Jan Slater, Simply Rose Petals, VIC
- Ian Ugarte, Small is the New Big, QLD
- Helen Andrew, Spare Harvest, QLD
- Glen Tanonef, Standing Fork, WA
- Mark Bollen, Sussex Squire Wines, SA
- Sam Paior, The Growing Space, SA
- Liam & Sarah Brokensha, The Splendid Egg, SA
- Helen Yost, The Tradettes, QLD
- Katie Liew, The Underground Collaborative, WA
- Erin Browne, Tinka the Label, VIC
- Mark Kraulis, U Pull It, SA
Australian Small Businesses Association Strategies.
Australian small businesses need to do everything they can to succeed. This section provides strategies for improving the performance of Australian small businesses. In particular, it covers using technology to enhance the performance of small businesses, using tax planning to increase sales, and enhancing the social media presence of Australian small businesses.
Use Technology to Enhance the Performance of Australian Small Businesses
Technology has a big role in helpingAustralian small business succeed. By using technology to improve the performance of your business, you can keep your costs low and maximize your potential as an entrepreneur. Some examples of how technology can help you achieve success include:
-Creating an online presence for your business that is easy to use and searchable
– developing an artificial intelligence (AI) program that helps you manage your finances
– creating a website or app that connects with customers on a more personal level
– using marketing tools to reach a wider audience
– using social media to connect with customers and promote your business
Australian Small Businesses Association strategies can help you increase sales, sell more products, and improve your social media presence. By using technology to enhance the performance of your small businesses, you can make them more efficient and effective. Additionally, by using tax planning to increase the sales of your business, you can maximize profits.