Forget the lone entrepreneur in a garage—today's Australian business landscape is a vast and dynamic ecosystem of 2.5 million actively trading companies, where the mighty 97% are small businesses yet nearly half the workforce powers larger enterprises.
Key Takeaways
- In 2021-22, there were 2,543,995 actively trading businesses in Australia
- Small businesses (0-19 employees) accounted for 97.2% of all Australian businesses in 2021
- Medium and large businesses (20+ employees) made up 2.8% of businesses but employed 43.6% of the workforce in 2021
- In June 2022, total employment in Australian businesses was 14.0 million persons
- Total filled jobs in the private sector reached 11.7 million in June 2022
- Public sector filled jobs were 2.3 million in June 2022
- In 2021-22, total industry turnover was $3,479 billion
- Construction industry turnover reached $367 billion in 2021-22
- Mining turnover was $348 billion in 2021-22
- Total exports of goods and services were $579 billion in 2022-23
- Iron ore exports valued at $136 billion in 2022-23
- Coal exports reached $65 billion in 2022-23
- Business R&D expenditure was $15.8 billion in 2020-21
- Manufacturing sector spent $3.2 billion on R&D in 2020-21
- Professional services R&D $2.9 billion in 2020-21
Australia's economy is dominated by small businesses, which employ nearly half the workforce.
Business Demographics
1In 2021-22, there were 2,543,995 actively trading businesses in Australia
Verified2Small businesses (0-19 employees) accounted for 97.2% of all Australian businesses in 2021
Verified3Medium and large businesses (20+ employees) made up 2.8% of businesses but employed 43.6% of the workforce in 2021
Verified4The Construction industry had the highest number of businesses at 246,679 in 2021
Directional5Professional, Scientific and Technical Services was the second largest sector with 231,678 businesses in 2021
Single source6New South Wales had 786,285 businesses, the highest of any state in 2021
Verified7Victoria followed with 664,072 businesses in 2021
Verified8Queensland had 511,865 businesses in 2021
Verified9Businesses with non-employing status numbered 1,425,215 or 56.0% of total in 2021
Directional1062,392 business entries occurred in 2021-22, representing a 2.5% increase
Single source1155,950 business exits in 2021-22, up 14.1% from previous year
Verified12Rental, Hiring and Real Estate Services saw 12,456 new entries in 2021-22
Verified13As of June 2023, there were 99.8% of businesses classified as small (less than 20 employees)
Verified14Sole traders represent 58% of all small businesses in Australia as of 2023
Directional15Partnerships make up 7% of small businesses in 2023
Single source16Proprietary limited companies account for 28% of small businesses in 2023
Verified17Public companies represent less than 1% of small businesses in 2023
Verified18In 2022, Australia had approximately 2.6 million small businesses employing 44% of the private workforce
Verified19The number of small businesses grew by 3.6% from 2021 to 2022
Directional20Micro businesses (1-4 employees) comprise 82% of small businesses in 2023
Single source21Small businesses in NSW numbered over 900,000 in 2023
Verified22Victoria had around 800,000 small businesses in 2023
Verified2335.7% of Australian businesses were established before 2000 as of 2021
Verified24Businesses aged 0-1 year made up 5.9% in 2021
Directional2520-39% of businesses are in Construction across states in 2021
Single source26Health Care and Social Assistance had 8.4% share of businesses in 2021
Verified27Retail Trade sector had 9.1% of total businesses in 2021
Verified281.1 million businesses had annual turnover under $2 million in 2018-19
Verified29Businesses with turnover $2m-$10m numbered 227,000 in 2018-19
Directional30Total tax agents registered were 29,022 in 2022
Single sourceBusiness Demographics Interpretation
The Australian economy is a classic case of "the many doing the little and the few doing the lot," where a vast sea of small businesses forms the vibrant coastline, but the real employment tides are pulled by a handful of larger vessels, all while the shoreline itself is constantly being reshaped by new arrivals and departures.
Employment Statistics
1In June 2022, total employment in Australian businesses was 14.0 million persons
Verified2Total filled jobs in the private sector reached 11.7 million in June 2022
Verified3Public sector filled jobs were 2.3 million in June 2022
Verified4Employment in small businesses (under 20 employees) was 4.3 million in 2021-22
Directional5Large businesses (200+ employees) employed 3.9 million people or 28% of total in 2021
Single source6Average employment per business was 5.5 persons in 2021
Verified7Construction industry employed 1,263,000 people in businesses in 2021
Verified8Health Care and Social Assistance employed 1,080,400 in 2021
Verified9Retail Trade had 1,059,300 employed in 2021
Directional10Small businesses employed 47% of the total workforce in 2022
Single source11SMEs contributed 68% of Australia's private sector employment in 2021-22
Verified12Unemployment rate for business employees was 4.2% in 2023
Verified13Part-time employment in businesses grew by 2.5% year-on-year in 2022
Verified14Female employment in small businesses was 45% in 2022
Directional15Youth (15-24) employment in SMEs was 1.2 million in 2022
Single source16Manufacturing sector employment declined to 840,000 in 2022
Verified17Professional services employed 1.4 million in 2022
Verified18Hospitality employment reached 900,000 post-COVID in 2023
Verified19Mining employment was 280,000 in 2022
Directional20Agriculture, Forestry and Fishing employed 320,000 in 2022
Single source21Total jobs in NSW businesses: 3.8 million in 2022
Verified22VIC employment in businesses: 3.2 million in 2022
Verified23Average weekly hours worked per job: 32.4 in June 2022
Verified24Wage growth in businesses was 3.8% annually in 2022
DirectionalEmployment Statistics Interpretation
While Australia's economic engine appears robust with 14 million employed, the reality is a delicately balanced ecosystem where small businesses are the surprisingly mighty heart, employing nearly half the workforce, yet the gears are grinding with modest wage growth and a manufacturing sector quietly shrinking.
Financial Metrics
1In 2021-22, total industry turnover was $3,479 billion
Verified2Construction industry turnover reached $367 billion in 2021-22
Verified3Mining turnover was $348 billion in 2021-22
Verified4Retail Trade turnover $547 billion in 2021-22
Directional5Professional services turnover $252 billion in 2021-22
Single source6Total industry value added was $1,130 billion in 2021-22
Verified7Industry gross operating profits totaled $396 billion in 2021-22
Verified8EBITDA for Australian industries was $532 billion in 2021-22
Verified9SMEs generated $418 billion in wages and salaries in 2021-22
Directional10Business investment in plant and equipment was $138 billion in 2022-23
Single source11Corporate tax revenue from businesses was $95 billion in 2022-23
Verified12Average annual turnover per business was $1.4 million in 2019-20
Verified13Construction profits rose 15% to $45 billion in 2021-22
Verified14Mining profits surged 38% to $133 billion in 2021-22
Directional15Retail profits increased 24% to $28 billion in 2021-22
Single source16Total business bankruptcies numbered 5,251 in 2022-23
Verified17External administrations affected 10,984 businesses in 2022-23
Verified18Average business loan size was $450,000 in 2023
Verified19Business lending growth was 5.2% in 2023
DirectionalFinancial Metrics Interpretation
While Australia’s corporate engine roared with impressive turnover and surging mining profits, the persistent growl of over 10,000 external administrations reminds us that beneath the headline billions, the business landscape remains a high-stakes tightrope walk.
Innovation and Investment
1Business R&D expenditure was $15.8 billion in 2020-21
Verified2Manufacturing sector spent $3.2 billion on R&D in 2020-21
Verified3Professional services R&D $2.9 billion in 2020-21
Verified438% of businesses innovated in 2021-22
Directional5New-to-market innovations by 12% of businesses in 2021-22
Single source6Businesses with ongoing R&D activities: 8,800 or 6.7% in 2020-21
Verified7Venture capital investment totaled $4.2 billion in 2022-23
Verified8Early-stage VC deals numbered 200 in 2022-23
Verified9Fintech startups raised $1.1 billion in 2023
Directional10CleanTech investment $1.5 billion in 2022
Single source11AI patents filed by Australian businesses: 1,200 in 2022
Verified12Total business mergers and acquisitions value $50 billion in 2023
Verified13Private equity deals 150 valued at $15 billion in 2023
Verified14Government grants for business innovation $2.5 billion in 2022-23
Directional15Export Market Development Grants claimed $170 million in 2022-23
Single source16R&D Tax Incentive claims totaled $3.1 billion in 2022-23
Verified1765% of businesses adopted cloud computing in 2022
Verified18Cybersecurity investment by businesses $5 billion in 2023
Verified19Blockchain adoption in businesses 15% in 2023
Directional20Green investment in businesses $10 billion in 2022-23
Single sourceInnovation and Investment Interpretation
While Australia's businesses are clearly flexing their financial muscles with billions poured into R&D, venture capital, and green tech, the fact that only 12% managed to produce something truly new-to-market suggests we might be better at spending money on the future than actually inventing it.
Trade and Exports
1Total exports of goods and services were $579 billion in 2022-23
Verified2Iron ore exports valued at $136 billion in 2022-23
Verified3Coal exports reached $65 billion in 2022-23
Verified4Natural gas exports were $70 billion in 2022-23
Directional5Gold exports totaled $19 billion in 2022-23
Single source6China was Australia's largest export market at 29% share in 2022-23
Verified7Japan accounted for 12% of exports in 2022-23
Verified8South Korea 6% of exports in 2022-23
Verified9Imports totaled $464 billion in 2022-23
Directional10Trade surplus was $115 billion in 2022-23
Single source11Services exports grew 20% to $104 billion in 2022-23
Verified12Education-related services exports $21 billion in 2022-23
Verified13Personal travel services $40 billion in 2022-23
Verified14SMEs contributed 35% to merchandise exports in 2021-22
Directional15Food and agriculture exports $67 billion in 2022-23
Single source16Beef exports $13 billion in 2022-23
Verified17Wine exports $2.5 billion in 2022-23
Verified18Total FDI inward stock $1,000 billion in 2022
Verified19US largest source of FDI at 23% in 2022
Directional20UK FDI 10% share in 2022
Single sourceTrade and Exports Interpretation
Australia’s economic engine runs on iron, coal, and gas, but is kept in balance by its students, tourists, and a healthy appetite for our beef and wine.
Sources & References
- Reference 1ABSabs.gov.auVisit source
- Reference 2ASBFEOasbfeo.gov.auVisit source
- Reference 3ATOato.gov.auVisit source
- Reference 4INDUSTRYindustry.gov.auVisit source
- Reference 5AFSAafsa.gov.auVisit source
- Reference 6RBArba.gov.auVisit source
- Reference 7DFATdfat.gov.auVisit source
- Reference 8AUSTRADEaustrade.gov.auVisit source
- Reference 9AGRICULTUREagriculture.gov.auVisit source
- Reference 10WINEAUSTRALIAwineaustralia.comVisit source
- Reference 11CUTCHERcutcher.com.auVisit source
- Reference 12FINTECHNEWSfintechnews.org.auVisit source
- Reference 13CLEANENERGYFINANCECORPcleanenergyfinancecorp.com.auVisit source
- Reference 14IPAUSTRALIAipaustralia.gov.auVisit source
- Reference 15CORRScorrs.com.auVisit source
- Reference 16PWCpwc.com.auVisit source
- Reference 17AUSTRACaustrac.gov.auVisit source
- Reference 18DELOITTEdeloitte.comVisit source
- Reference 19CLIMATECHANGEAUTHORITYclimatechangeauthority.gov.auVisit source