New research reveals that greater financial support, regulatory change and government-led initiatives that make it easier to start a business are seen as the most important changes needed to grow Australian entrepreneurship.
Doing so could help unleash the potential of millions of aspiring entrepreneurs, driving innovation and economic prosperity for the nation.
New research from Shopify of 2,220 Australians and 480 business owners, conducted by Censuswide, shows a burgeoning entrepreneurial spirit across the country:
- Almost three-quarters of Australians (70%) express a desire to own their own business if all other factors were equal.
- This interest spans across age groups, with younger demographics showing the highest entrepreneurial enthusiasm – a substantial 84% of 16-24s have entrepreneurial ambitions.
- One in five Australians (21%) already own their own business, and an equal proportion (21%) have seriously considered starting one.
- Three-quarters (76%) of aspiring entrepreneurs in Australia say they have wanted to start their own business for three or more years.
Entrepreneurial motivations are diverse
Among Australia’s aspiring entrepreneurs, the top reasons cited for starting their own business are:
- The opportunity to earn more money (58%)
- A desire to be their own boss (50%)
- Work flexibility (40%)
Alongside the pull of higher income and independence, some factors push Australians into entrepreneurship:
- 13% of those seriously considering owning a business are driven by concerns about perceived job obsolescence due to technological advancements.
- 16% of business owners in Australia started their venture after being made redundant from their previous job.
Financial constraints and government support are holding aspiring entrepreneurs back
The appetite for entrepreneurship is prevalent but the barriers to entry remain high. Among those who have thought about starting a business, but do not have serious plans in place:
- 50% cited financial obstacles as a key issue
- 35% said they lacked confidence
- 34% said they lacked knowledge
- 24% were concerned about their skillset
When asked which factors would make them more interested in starting a business, Australians who had briefly considered it said:
- Government programs to support potential business owners could sway them (58%)
- A decrease in the cost of living would encourage entrepreneurship (43%)
While the majority of Australians want to be their own boss, their ability to fund the business could be limiting.
- 73% would be prepared to invest their own money
- 43% expressed a lack of money to start
- 20% highlighted high interest rates on business loans as a key challenge
Shaun Broughton, Managing Director, APAC at Shopify comments: “Australians are enthusiastic entrepreneurs, particularly younger Aussies. Addressing financial obstacles is essential to unlock a vibrant entrepreneurial ecosystem and unearth the potential of aspiring entrepreneurs across the country. By enhancing access to funding, reducing financial risks, and encouraging people to start a business, we can help reduce barriers to entry for Australian entrepreneurs to drive stronger economic growth, innovation and employment for all.”
The path to entrepreneurship is not linear
Building a business rarely follows a predictable trajectory, and the path to entrepreneurship doesn’t necessarily mean going all in from day one. The research found:
- 27% of Australian business owners went full-time into their company from the offset
- 37% started their business as a side hustle
- 20% turned their side hustle into a full-time venture
- 16% started their business after leaving the workforce (i.e. retirement or after maternity leave).
Moreover, though initial failure isn’t unusual in the entrepreneur community, it doesn’t hold them back from building new businesses.
- Over a third (38%) of Australian business owners previously started a business that was unsuccessful
- 46% of entrepreneurs had at least one previous business before achieving success
- 32% of successful business owners had two to three unsuccessful businesses first
Encouragement and experience can be powerful enablers
Support networks and prior experience in their chosen field were seen as strong enablers for entrepreneurship:
- 40% of Australian business owners — more than any other country surveyed — said that encouragement from people they knew was particularly helpful when they started out.
- 41% of aspiring entrepreneurs also recognise the role of family and friends support in helping them start a business
- 38% of aspiring entrepreneurs said prior work experience in the field would help them start their business
- 24% said they would lean on their personal and community networks to start their business.
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