Australian microbusinesses on the rise

The number of microbusinesses in Australia grew 10 per cent in the 2021–22 financial year to 1.55 million, despite the pandemic, inflation, and a global economic downturn.

by | 29 Nov, 2022

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The data comes from the Australian Banking Association’s 2022 Small and Medium Enterprises Lending Report, which found not just microbusinesses grew across Australia but so did the number of small businesses, rising 3 per cent to 955,861.

That increase followed an extraordinary 15 per cent climb in SMEs in FY21.

“Despite the difficult economic conditions resulting from a global pandemic and a contraction in economic activity during the 2021 and 2022 financial years, the number of SMEs operating in Australia has grown,” ABA chief executive, Anna Bligh, said.

“The rate of growth across all business sizes during the 2022 financial year was larger than the growth experienced in the years leading up to pandemic.”

The report was launched at the Small Business Roundtable and provides a snapshot of the current economic position of the small-business sector in Australia.

Ms Bligh said that it showed the experience of SMEs has been mixed during the past year as they navigate an economic landscape complicated by inflation, rising interest rates, and low unemployment.

However, she said business and small-business confidence has not mirrored the subdued consumer confidence.

“While the growth of total small business lending remains flat, data received from ABA member banks shows that the average value of loans made to small and medium businesses has been increasing,” Ms Bligh said.

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