{"id":184154,"date":"2024-07-12T14:30:25","date_gmt":"2024-07-12T04:30:25","guid":{"rendered":"https:\/\/propertyupdate.com.au\/?p=184154"},"modified":"2024-07-06T00:07:13","modified_gmt":"2024-07-05T14:07:13","slug":"australia-the-small-business-nation-2","status":"publish","type":"post","link":"https:\/\/propertyupdate.com.au\/australia-the-small-business-nation-2\/","title":{"rendered":"Australia, the small business nation"},"content":{"rendered":"

Australia has always been an entrepreneurial nation, with small businesses as the backbone of the economy and the labour force.<\/p>\n

The Australian spirit of independence, a DIY attitude and the courage to give things a go are strongly demonstrated in the data. With lower trust in large corporations, and a rising generation with entrepreneurial ambition, Australia\u2019s small business landscape is on the rise again but is challenged by regulatory burden and globalisation.<\/p>\n

In Australia, almost nine in ten businesses (88%) employ four people or fewer.<\/p>\n

Among the emerging generations, the entrepreneurial spirit is strong, with 86% of Gen Z wanting to work in something they started themselves.<\/p>\n

When asked why, Gen Z pursued a side hustle to combat the cost of living, achieve financial goals, or to develop a temporary income system.<\/p>\n

\"Jobs\"<\/a><\/p>\n

The side hustle generation<\/span><\/h2>\n

Among the emerging generations, the entrepreneurial spirit is strong, with 86% of Gen Z wanting to work in something they started themselves.<\/p>\n

The gig economy has enabled them to develop additional income streams with the rise of things like Uber, Depop, and other e-commerce tools.<\/p>\n

When asked why, Gen Z pursued a side hustle to combat the cost of living, achieve financial goals, or to develop a temporary income system.<\/p>\n

\"\"<\/h2>\n

While the data highlights the entrepreneurial dream of many Australians, there are some real challenges with 49% of businesses failing in their first 4 years.<\/p>\n

While there are challenges, Australians are more likely to choose small businesses over large corporations for their purchases.<\/p>\n

Almost three in four (72%) are more likely to purchase goods and services from small businesses compared to large corporations (28%).<\/p>\n

\u00a0\"\"<\/span><\/h2>\n

The Top 5 Survival Challenges<\/span><\/h2>\n

1. Red tape \u2013<\/strong>\u00a0One of the difficulties for small businesses is the time and cost requirements related to compliance, legislation and regulations.<\/p>\n

What\u2019s more, it is on the rise and negatively impacting on small businesses.\r\n\r\n

<\/div><\/p>\n

Two in five business owners and managers (41%) say red tape and compliance costs have an extreme or significant impact on their business performance.<\/p>\n

2. Access to finance \u2013<\/strong>\u00a0The Royal Commission\u2019s recommendations for the big four banks will result in the tighter lending criteria. As we know, cash is king so small businesses may struggle as a result of these tougher requirements.<\/p>\n

Increasing expenses, both general operating costs and wages are also a challenge for small businesses.<\/p>\n

3. Digital presence<\/strong>\u00a0\u2013<\/strong>\u00a0Businesses must have a digital presence. Especially for Gen Y (1980 \u2013 1994) and Gen Z (1995 \u2013 2009), if businesses are not online, they don\u2019t exist, as much of their world is online.<\/p>\n

Having a website that is easy to navigate, up to date and well presented along with a social media platform is vital for reaching and connecting with potential customers.<\/p>\n

4. Local infrastructure \u2013<\/strong>\u00a0One of the top demands of small business is local infrastructure provision (strong public transport links, availability of public parking, connections to uncongested roads and high-speed internet).<\/p>\n

Business owners list infrastructure investment which responds to the changing needs of a local area as a key factor in their survival.<\/p>\n

5. Staff \u2013<\/strong>\u00a0Attract and retain top talent by understanding what the younger generations look for in the work life.\u00a0Gen Y and Gen Z have different priorities<\/a>\u00a0and are attracted by more than just the pay.<\/p>\n

Some of the\u00a0most desired attributes of a workplace<\/a>\u00a0are bosses that provide are:<\/p>\n