If you were to take recent news reports at face value, you’d be forgiven for thinking that Australian small businesses are floundering. With talks of an economic recession continuing late into the new year, and bushfires ravaging much of the country’s landscape, small businesses are certainly facing struggles. Despite this, rigorously researched statistics suggest that they’re doing just fine.
How many small businesses are there in Australia?
At the end of June 2018, there were more than 2,250,000 small businesses registered in Australia. This statistic represents businesses that have fewer than 20 staff. They account for 98% of the businesses currently operating in Australia.
Although those statistics don’t directly reflect the success of Australian small businesses, the fact that they represent such a large proportion of businesses in Australia is promising. If all small businesses were floundering, larger organisations would dominate more of the business landscape.
Statistically, Australian small businesses are doing fine
According to the small business optimism index, small business owners are feeling far more positive than they have done in the past. Measurements taken late in 2019 did show a dip in optimism, but the index still remains in the top 15% of historical levels.
Naturally, recent events such as the bushfires are likely to have an impact on small business optimism. They may also stagnate growth during periods of recovery. However, programs are already in place for businesses that need to recover, including grants and relief efforts.
While talks of a recession continue to linger, try scratching beneath the surface to see how small businesses are really doing. Continued optimism could promote further growth, and it could inspire more people to start their own ventures.