The Australian small businesses community is under pressure from rising costs, putting its significant contribution to the economy at risk. This report brings together research from various sources to examine the challenges and pressures facing the sector, providing detailed insights and proposed interventions across key areas. 

Challenges facing small businesses include the cost of doing business, workforce and training, energy transition, AI, industrial relations, cyber security and government procurement contracts. The authors of this report argue that the flow-on effects of this burden impact the wider economy and, in turn, all Australians.  

The authors call for targeted policy interventions to reduce red tape, explore shared resources and alleviate the costs of doing business for small and medium operators. They argue that supporting small business sustainability and enhancing business resilience would lead to a reduced cost of living, benefitting both businesses and consumers.

Key findings

• 97.5% of Australian businesses are small businesses. 
• Small businesses contributed 33% of Australia's total GDP in 2020-2021.
• 1/3 of small business owners are unable to pay themselves, and 1/4 use personal savings to support their business.
• 57% experience stress due to financial pressures, 50% experience anxiety and 48% have trouble sleeping. 
• Over 50% of small businesses have yet to embark on an energy transition, hindered by financial barriers and lack of knowledge. 
• Less than 1/3 of small business owners report feeling vulnerable to cyber attack, despite at least 78% being at risk.
• 43% of cyber crime targets small business, and the average cost per attack is $46,000.