A new study by MYOB reveals that many entrepreneurial Australians found opportunities in the changes brought by the COVID-19 pandemic, including the flexible working setup provided by many businesses, to launch a start-up or side hustle, and they are thriving in a post-pandemic world.
The survey of 496 start-up founders, who have been in operation for under two years, found three in 10 started their new venture while working in another job. Of those still employed in the other job, 65 per cent are able to work from home at least one day a week and 89 per cent of those able to work from home saw being able to do that as a motivating factor in starting a small business.
A fifth of survey respondents started their business to meet a direct need created by COVID-19, and for three quarters (75 per cent) this is the first business they’ve had. Over half, 53 per cent, made a profit this year, and a further 28 per cent broke even.
MYOB’s General Manager of SMEs, Emma Fawcett, said that the findings show the ability of Australians to see and grasp opportunity when presented.
“We know COVID created incredibly demanding conditions for many business owners, so it’s positive to see that the pandemic actually afforded some people with a little more freedom, allowing them to take the plunge with their start-up,” Fawcett said. “Having so many profitable in their first year, despite the majority of survey respondents being first-time business owners, speaks to the quality of innovation driving these pandemic-born start-ups.”
Despite the positive outcomes for many of these founders there are challenges ahead, with 33 per cent of respondents remaining concerned about their business’s ability to access capital over the next two years. Of those concerned, the reasons are inflation (42 per cent) and keeping up with the price of goods and services (42 per cent).
“Growing a business is challenging at the best of times,” Fawcett said. “The current economic climate is likely to encourage more caution for those starting out, but clearly isn’t completely dampening the resolve of new SMEs owners.”
For respondents, the three main barriers to future growth are inability to attract new customers or sales (39 per cent), lack of growth opportunities (25 per cent) and consumer trust in the business compared to competitors (20 per cent).
“Embedding strong business processes early on will help business owners with visibility and planning to give them the best chance of success,” Fawcett said. “It’s pleasing that despite the difficulties faced by the business community over the past few years, there has been some opportunity allowing start-up founders to build new businesses.”
