One silver lining to the COVID-19 pandemic is that it has kickstarted the small business boom! Global small business platform Xero recently released a report about Australia’s small business sector and the many opportunities that will become available to small businesses in the coming years.
What caused the small business boom?
During the COVID-19 crisis, industries such as healthcare, and agriculture were booming, with supply chain issues forcing consumers to shop local.
Since the pandemic first began, many people experienced redundancies and were forced into taking a shift in their careers. With working from home becoming the new normal and tech in this space taking off, it has become easier than ever to start a business from your dining room table.
Savvy professionals now recognise the negative impacts of burnout, the corporate grind and working in environments that aren’t flexible. This fresh perspective has meant that the next generation of leaders is focused on building careers and businesses that give meaning, purpose and joy.
Benefits of the small business boom
The small business boom is an exciting time for those directly involved, but also for the Australian economy.
??Managing Director of Xero (Australia and New Zealand), Joseph Lysons, has announced that conditions are favourable for Aussies seeking to strike out on their own. He has predicted that “We’ll see this play out with an expected 3.5 million small business registrations contributing a total of $370 billion to the Australian economy over the next 10 years.”
Xero’s report reveals a 34% increase in small business registrations in Australia between 2019 and 2021. Of the businesses registered, 45% of business owners are aged under 35 and we saw a 40% increase in small businesses owned by women.
Setting your small business up for success
It is a special time to be a small business owner! The team at APS Tax & Accounting love helping passionate business owners establish, run and grow successful businesses.
If you’re running a small business, it is important to seek financial, accounting and legal advice from the beginning. If you are looking for support, we’re here to help with business setup and structuring, tax planning, accounting, self-managed super funds and more!