Australian start-ups are working fewer hours for better returns compared to more established SMEs.
According to the latest MYOB Business Monitor, start-ups are also more confident about this year’s revenue performance – 42 per cent expect revenue to increase, compared to just 30 per cent of SMEs.
James Scollay, general manager of MYOB, said this is further evidence that Australian government and industry must continue to support local entrepreneurs.
“Starting a business is one of the most challenging and rewarding milestones an individual can reach for. To help new business owners succeed, it’s important we understand the challenges they face and apply greater focus to making it easier to start and build a business,” he said.
“This community is a vital and dynamic business force for Australia. Many are on their way to becoming tomorrow’s business leaders and influencers. Start-ups represent the next generation of employers, supplies, innovators, and investors in economic growth and development,” Scollay added.
Cash flow is a key concern on many a business owner’s mind, yet over 70 per cent of owners stated that the biggest challenge for their start-up over the next year will be attracting new customers.
Almost half the survey respondents said they will also be focusing on progressing their customer retention strategies.
Polly Green, who left a corporate career to create online toy store Green Ant Toys has never looked back, despite the challenges.
“One of the most challenging aspects of starting a new business has been creating consumer awareness and establishing a customer base,” she said.
“As a new online business, gaining a presence, consumer trust, and customers is both expensive and time consuming,” she said.
Some 50 per cent of start-ups are working more than 40 hours a week, while 37 per cent are working 40-60, and 13 per cent work more than 60 hours a week.
Scollay praised the work ethic of Australian entrepreneurs: “Even though not every start-up succeeds, each plays a role in enriching the business environment, creating demand, testing ideas, and supporting the livelihoods of many.”