A new report prepared by NRMA Insurance and the McKell Institute highlights the significant contribution of microbusinesses – for the purposes of their report, businesses with up to four employees – to the Australian economy and the community, and the opportunities to boost the sector into the future.
The Micro but Mighty: Magnifying Microbusiness in Australia report reveals that microbusinesses make up 89 per cent of all businesses in the country. It is the fastest-growing sector of the small-business community, having increased in size by 14 per cent over the past four years to 2.28 million businesses and employing 2.9 million Australians.
NRMA Insurance Chief Executive Officer Julie Batch said the report underscores the value of microbusinesses to the nation.
“Microbusinesses start with a passionate owner, a fantastic idea and thrive on community support,” Batch said. “There are incredible opportunities for this sector, not only in economic contribution to the nation but also the positive impacts many of these businesses have within their local communities.”
The report also looked at the challenges currently facing microbusinesses in Australia, including limited access to resources and specialist knowledge, lack of a formal definition of microbusiness, extreme weather, and cybersecurity risks related to operating online businesses.
The report makes a number of key recommendations to maintain the health of the sector:
- Establishment of a formal definition of microbusiness in Australia.
- Address the structural barriers which limit access to finance for women who own microbusinesses.
- Creation of a one-stop-shop resource for microbusiness support and resources across different levels of government.
- Partnership with the financial sector to provide education courses for microbusinesses that will help them grow.
- Having dedicated government support that treats microbusinesses as a separate category from small business.
The report also notes a growing number of female microbusiness owners, with data suggesting that 35 per cent of Australian microbusinesses are owned by women.
“Women play an essential role in the Australian business community and we are committed to supporting more of them into entrepreneurial pathways,” NSW Minister for Women, the Hon. Jodie Harrison said. “The microbusiness sector is particularly advantageous for women, providing them with flexibility and opportunities that the more traditional labour market might not.”
