Small businesses represent 97.5 percent of all actively trading businesses in Australia. They employ 5.1 million people in the private sector and contribute 35 percent of GDP. Statistics detail the inflation, labour shortages, and regulatory costs that affect daily operations alongside available government support measures.
Key Takeaways
- 55% inflation challenges
- Labour shortages impact 62% small businesses in 2023
- Regulatory burden costs $25,000 pa average per small business 2023
- Small businesses employ 44% of the private sector workforce or 5.1 million people in 2022
- 68% of all employed Australians work for small businesses as of 2023
- Micro businesses employ 3.9 million people representing 35% of workforce in 2022
- Small businesses contribute $420 billion to GDP or 35% in 2022
- Total turnover of small businesses was $1.2 trillion in 2021-22
- Average annual turnover for small businesses is $450,000 in 2022
- As at June 2023, there were 2,663,958 actively trading businesses in Australia with 97.5% being small businesses (0-19 employees)
- Small businesses account for 97.2% of all employer businesses in Australia as of June 2022: June 2026
- In 2021-22, there were 1,054,000 small incorporated businesses in Australia
- 28% of small businesses survival rate beyond 10 years as of 2022
- 60% of small businesses survive first 3 years post-2019 cohort
- Entries of new small businesses 350,000 in 2022-23
Australian small businesses face inflation, skills gaps, and cyber risks, even as energy relief and support drive resilience.
Related reading
01 · Category
Challenges and Government Support23 stats
01
55% inflation challenges
02
Labour shortages impact 62% small businesses in 2023
03
Regulatory burden costs $25,000pa average per small business 2023
04
48% cite cash flow as top challenge in 2023 survey
05
Cyber threats affected 29% small businesses in 2023
06
Skills gaps reported by 57% small businesses 2023
07
Government grants accessed by 22% small businesses $5.2 billion total 2022-23
08
Instant asset write-off utilised by 52% saving $10 billion 2023
09
Energy costs crisis hit 65% small businesses 2023
10
Supply chain disruptions affected 41% in 2023
11
Mental health issues 39% small business owners 2023 survey
12
Compliance costs 12% of revenue for smallest businesses 2022
13
JobMaker Hiring Credit supported 150,000 small businesses 2021-22
14
R&D tax incentive claimed by 12,000 small businesses $3 billion 2022
15
70% small businesses fear recession impact 2023
16
Access to finance denied 28% small business loan applications 2023
17
Training subsidies reached 40% small businesses via Skills Checkpoint 2023
18
Bushfire recovery aid to 15,000 small businesses $500 million 2020-23
19
Flood relief grants 25,000 small businesses $1 billion 2022-23
20
Export Market Development Grants 3,500 small businesses $150 million 2023
21
Digital Boost program trained 100,000 small business owners 2023
22
Fair Work compliance issues for 35% small businesses 2023
23
Climate change risks identified by 52% small businesses 2023
Interpretation
Challenges and Government Support Interpretation
In the face of a relentless gauntlet of inflation, labour shortages, and red tape, Australia's small businesses are staggering forward with remarkable tenacity, a modest safety net of government support, and a quiet but growing dread of the next economic punch to the gut.
02 · Category
Employment Impact28 stats
01
Small businesses employ 44% of the private sector workforce or 5.1 million people in 2022
02
68% of all employed Australians work for small businesses as of 2023
03
Micro businesses employ 3.9 million people representing 35% of workforce in 2022
04
Small businesses created 70% of new jobs in Australia between 2018-2022
05
Average employment per small business is 2.1 employees in 2023
06
Construction small businesses employ 12% of total small business workforce in 2022
07
Health care small businesses employ 450,000 people (8%) in 2022
08
Retail small businesses workforce totals 650,000 (11%) in 2022
09
Professional services small businesses employ 1.1 million (19%) in 2022
10
25% of small business employees are part-time as of 2023 survey
11
Female employees in small businesses comprise 47% of workforce in 2022
12
Youth employment (15-24) in small businesses is 28% of their workforce 2022
13
Regional small businesses employ 2.2 million people (43% of small biz workforce) 2022
14
Small businesses in NSW employ 1.8 million (35%) nationally in 2022
15
Victorian small businesses workforce is 1.3 million (25%) in 2022
16
Queensland small business employment totals 900,000 (17%) in 2022
17
Small businesses added 250,000 jobs post-COVID by 2023
18
Casual employment in small businesses is 32% of their workforce 2023
19
Manufacturing small businesses employ 300,000 (5.5%) in 2022
20
Accommodation small businesses workforce 400,000 (7%) in 2022
21
Transport small businesses employ 350,000 (6%) in 2022
22
Education small businesses workforce 250,000 (4.5%) 2022
23
Arts and recreation small businesses employ 150,000 (2.7%) 2022
24
Indigenous employment in small businesses is 4% of workforce 2021
25
Small business apprenticeships account for 55% of total apprentices 2023
26
Wage growth in small businesses averaged 3.5% in 2023
27
Turnover per small business employee averages $180,000annually 2022
28
Small businesses with 5-19 employees employ 1.2 million (22% workforce) 2022
Interpretation
Employment Impact Interpretation
While often seen as the plucky underdogs of the economy, Australia's small businesses are, in fact, the country's backbone, quietly employing nearly half the private sector, creating most new jobs, and proving that big things really do come in packages averaging 2.1 employees.
03 · Category
Financial Performance24 stats
01
Small businesses contribute $420 billion to GDP or 35% in 2022
02
Total turnover of small businesses was $1.2 trillion in 2021-22
03
Average annual turnover for small businesses is $450,000in 2022
04
45% of small businesses reported profit margins over 10% in 2023 survey
05
Small business tax revenue to government $80 billion in 2021-22
06
Debt levels average $250,000per small business in 2022
07
Cash flow issues affect 42% of small businesses monthly 2023
08
Construction small businesses average turnover $1.2 million 2021-22
09
Retail small businesses average profit $120,000annually 2022
10
35% of small businesses have annual revenue under $100,000 in 2022
11
Investment in small businesses totalled $150 billion in loans 2023
12
Profitability rate for small businesses 62% in 2023 survey
13
Average small business superannuation contributions $25,000pa 2022
14
Export revenue from small businesses $45 billion in 2022
15
Cost of living pressures increased expenses 22% for small businesses 2023
16
Digital adoption boosted revenue 15% for 40% of small businesses 2023
17
Insurance costs average $15,000pa for small businesses 2023
18
Energy costs rose 28% impacting 55% small businesses profitability 2023
19
Small business R&D expenditure $12 billion in 2021-22
20
Bankruptcy filings for small businesses 8,500 in 2022-23
21
Average small business asset value $500,000in 2022
22
52% small businesses use instant asset write-off averaging $20,000 claim 2023
23
Wage costs 32% of total expenses for small businesses 2023
24
Marketing spend averages 5% of revenue for small businesses 2022
Interpretation
Financial Performance Interpretation
Small businesses are Australia's economic engine, remarkably humming along at a $1.2 trillion turnover and contributing a third of our GDP, yet they're simultaneously navigating a precarious tightrope where nearly half face monthly cash flow woes while balancing an average debt of a quarter-million dollars and soaring costs.
More related reading
04 · Category
Prevalence and Demographics30 stats
01
As at June 2023, there were 2,663,958 actively trading businesses in Australia with 97.5% being small businesses (0-19 employees)
02
Small businesses account for 97.2% of all employer businesses in Australia as of June 2022: June 2026
03
In 2021-22, there were 1,054,000 small incorporated businesses in Australia
04
70% of small businesses in Australia are sole traders
05
New South Wales hosts 28% of Australia's small businesses with 746,000 as of 2023
06
Victoria has 25% of small businesses totaling 665,000 in June 2023
07
Construction sector has 18.6% of small businesses (495,000) in 2023
08
Professional, scientific and technical services hold 14.3% of small businesses (381,000) as of 2023
09
Rental, hiring and real estate services comprise 11.1% or 296,000 small businesses in 2023
10
38% of small businesses are less than 4 years old as of 2022
11
Micro businesses (0-4 employees) make up 94.8% of all small businesses in 2023
12
Queensland has 306,000 small businesses representing 11.5% nationally in 2023
13
Western Australia small businesses number 238,000 or 8.9% in 2023
14
South Australia has 126,000 small businesses (4.7%) in 2023
15
Tasmania small businesses total 32,000 (1.2%) as of 2023
16
Northern Territory has 15,000 small businesses (0.6%) in 2023
17
ACT small businesses number 22,000 (0.8%) in 2023
18
2.5 million non-employing small businesses exist in Australia in 2023
19
Female-owned small businesses increased by 12% from 2018 to 2022
20
Indigenous-owned small businesses number 90,000 as of 2021
21
65% of small businesses are in metropolitan areas in 2022
22
Retail trade sector has 210,000 small businesses (7.9%) in 2023
23
Administrative services small businesses total 173,000 (6.5%) in 2023
24
Health care small businesses number 142,000 (5.3%) in 2023
25
Accommodation and food services have 126,000 small businesses (4.7%) in 2023
26
Average age of small businesses is 9.5 years as of 2022
27
15% of small businesses are family-owned according to 2021 survey
28
Online-only small businesses grew to 12% of total in 2023
29
28% of small businesses are in professional services in NSW 2023
30
Exporting small businesses represent 6% nationally in 2022
Interpretation
Prevalence and Demographics Interpretation
Australia's economy is a bustling hive of 2.5 million small businesses, where the heroic solo operator is king, construction is the most popular trade, and the spirit of a fresh start is alive with over a third of them younger than a four-year-old with a business plan.
05 · Category
Survival and Growth24 stats
01
28% of small businesses survival rate beyond 10 years as of 2022
02
60% of small businesses survive first 3 years post-2019 cohort
03
Entries of new small businesses 350,000 in 2022-23
04
Exits of small businesses totalled 280,000 in 2022-23
05
Growth rate of small businesses 4.2% annually 2018-2022 average
06
High-growth small businesses number 15,000 (0.6%) in 2022
07
22% of small businesses expanded workforce in 2023
08
Digital transformation adopted by 65% small businesses boosting growth 12% 2023
09
Exporting small businesses grew 8% from 2021-2023
10
Franchised small businesses survival 85% after 3 years vs 60% independent 2022
11
Regional small business growth 5.1% vs metro 3.8% 2022
12
Construction small business growth 6% in entries 2023
13
Tech sector small businesses growth 12% employment 2022
14
Pandemic resilient small businesses 75% recovered by 2023
15
Succession planning in place for 18% small businesses 2023 survey
16
Innovation active small businesses 32% filed patents 2022
17
E-commerce growth 25% revenue for small retailers 2023
18
Female-led small businesses growth 7% faster than male-led 2022
19
Green initiatives adopted by 40% small businesses for growth 2023
20
M&A activity in small businesses up 15% in 2023
21
Survival rate for startups 48% after 5 years 2017 cohort
22
Scale-up small businesses 5,000 grew >20% turnover 2022
23
Overseas expansion by 4% small businesses in 2023
24
Automation investment grew output 18% for 35% small businesses 2023
Interpretation
Survival and Growth Interpretation
The landscape for Australian small businesses is a thrilling yet brutal marathon where nearly a third of starters make it to the ten-year mark, proving that success is less about a flashy start and more about relentless adaptation, digital savvy, and sometimes, the sheer grit to outlast 280,000 annual exits.
Reference
Cite This Report
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APA
Rachel Svensson. (2026, February 13). Small Businesses In Australia Statistics. Gitnux. https://gitnux.org/small-businesses-in-australia-statistics
MLA
Rachel Svensson. "Small Businesses In Australia Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/small-businesses-in-australia-statistics.
Chicago
Rachel Svensson. 2026. "Small Businesses In Australia Statistics." Gitnux. https://gitnux.org/small-businesses-in-australia-statistics.
Sources & references
19 datasets cited across this report · attribution is report-level
abs.gov.auato.gov.aubusiness.gov.auasbfeo.gov.auregionalaustralia.org.aucosboa.org.au
aigroup.com.aunsw.gov.auaustrade.gov.aurba.gov.au
insurancecouncil.com.auindustry.gov.auafsa.gov.au
franchisebusiness.com.auipaustralia.gov.aucyber.gov.aublackdoginstitute.org.aufairwork.gov.auclimatechangeauthority.gov.au