Millions of people interact with small businesses[1] everyday with very little knowledge of just how important these enterprises are and what role they play in our economy. Well, they are NOT “just small businesses”, here’s five reasons that prove size isn’t everything.
1. There are almost 2.1 million small businesses in Australia. This accounts for over 97% of all registered businesses in the country.
Without small businesses, the Australian business life (and the economy) would not be the same. 97% of businesses in the country are small businesses, so if they go out of business, the economy would come to a standstill. Not to mention the huge gaps that would be left in the market, from our daily dose of coffee to beautiful flower arrangements to the gift shop nearby, small businesses are everywhere and pretty much make up our daily life.
2. Small businesses contribute 35% of the Australian private sector’s economic output
Second to large businesses, small businesses contributed over a third of Australia’s economic output. This is an impressive number considering their size! The economy is no longer monopolised by the same people and the same corporations. We’re seeing a variety of players in the economy game, all thanks to small businesses like yours!
3. 44% of all employees are working in small businesses
Small businesses are responsible for almost half of the total employment in Australia. While this fluctuates throughout the years as businesses rise and fall, it’s still no doubt that small businesses hold the highest percentage of the country’s labour force. Thanks to small businesses, millions of Australians have access to employment benefiting the economy as a whole.
4. 57% of Australia’s GDP came from SMEs
In 2017, the National Australian Bank produced the whitepaper Moments that Matter: Understanding Australian SMEs. Their survey concluded that 57% of Australia’s GDP was created by small to medium sized businesses. That’s more than half of Australia’s GDP attributed to SMEs, not just the big guys!
5. It’s the vessel of innovation
Bright ideas and game-changers in the industry don’t often come from the big players in the market. Small business owners are more likely to take risks and invest in change and business development as they constantly try to offer new products and services. In the years to come, we can expect Australia to maintain its reputation as having one of the highest rates of innovation in the world.
Because of the crucial roles played by small businesses, owners like yourself deserve better. You deserve better support otherwise the pressure of doing business can have a toll on you, especially when you wear too many hats at once.
We can help you to work smarter, to be in your business more. After all, you’re not just a small business. You’re a vital part of our economy.