Australia’s business ecosystem demonstrated remarkable vitality in 2023 to 2024, with entrepreneurs launching new ventures at an unprecedented rate while established businesses showed impressive resilience.
As Kim Owen Jones, MYOB General Manager of SME Direct, observes: “There’s a simple, powerful signal in the latest business data from the Australian Bureau of Statistics: entrepreneurship in Australia is alive and thriving.” The latest official data from the Australian Bureau of Statistics (ABS) reveals a landscape characterized by robust growth, strategic industry shifts, and an evolving business structure that reflects changing economic priorities.
ABS data: Counts of Australian Businesses, including Entries and Exits
Record business growth across the nation
Australia now hosts 2.66 million actively trading businesses, representing a substantial 2.8% increase from the previous year, a net gain of 73,125 new businesses. This growth trajectory signals not just economic recovery, but genuine expansion across multiple sectors and regions.
The entry statistics are particularly striking: 436,018 businesses entered the Australian market in 2023 to 2024, achieving a 16.8% entry rate. While 362,893 businesses exited (a 14.0% exit rate), the net positive outcome demonstrates that entrepreneurial ambition is outpacing business failures by a significant margin.
As Jones puts it: “This growth is not just a number, it’s testament to the resilience, innovation and ambition of Australians who see opportunity in uncertainty. Across industries and across the country, more people are taking the leap to build something new.”
Source: Australian Bureau of Statistics, Counts of Australian Businesses, including Entries and Exits, July 2020 to June 2024
The rise of solo entrepreneurs and corporate growth
Perhaps the most fascinating trend revealed in the data is a fundamental shift in how Australians are choosing to structure their businesses. Non-employing businesses surged by 4.9%, adding 78,144 new solo ventures to the economy, while businesses employing 1 to 4 staff actually decreased by 1.4%.
This structural transformation suggests that many entrepreneurs are either starting lean or that existing small employers are streamlining operations. The data indicates a net movement of approximately 33,783 businesses from employing to non-employing status, a trend that could reflect both economic pragmatism and the growing viability of solo entrepreneurship in the digital age.
Meanwhile, companies showed the strongest growth among legal structures, increasing by 5.4% to reach 1,153,149 businesses with 185,819 new company registrations. This dual trend, toward both solo ventures and formal corporate structures, suggests a polarization in business strategies.
Growth industries leading the charge
The sector analysis reveals where economic opportunity is concentrating. Leading the growth rankings: Transport, postal and warehousing emerged as the standout performer with 8.5% growth, likely reflecting the continued expansion of e-commerce and logistics infrastructure.
Health care and social assistance followed closely at 7.7% growth, demonstrating Australia’s response to demographic changes and post-pandemic health priorities. Financial and insurance services rounded out the top three with 4.8% growth, suggesting increased demand for financial planning, investment services, and insurance products in an uncertain economic environment.
Jones observes that these growth patterns reflect strategic alignment with societal needs: “Emerging industries such as transport, health, and financial services are among the top growth sectors, indicators of where new opportunities are surfacing.
The rise in these areas suggests that people are aligning their business pursuits with evolving societal needs, such as mobility, care, and security, while also taking advantage of digital tools to meet demand efficiently.”
Not all sectors shared this prosperity. Agriculture experienced a 1.3% decline, while retail saw a modest 0.2% decrease, trends that may reflect broader structural changes in these traditional industries.
Source: MYOB analysis of Australian business growth sectors, 2024
Growth everywhere, led by the west
Every single state and territory recorded business growth, demonstrating that entrepreneurial energy isn’t confined to traditional economic centers. New South Wales captured the largest absolute gain with 25,488 new businesses, reflecting its large economy and population base.
However, Western Australia and the Australian Capital Territory led in percentage terms, both achieving 3.5% growth rates. Jones notes that this geographic distribution is particularly significant: “What’s particularly encouraging is that every single state and territory recorded an increase in business counts. Western Australia and the ACT led with 3.5% growth each, showing that the entrepreneurial spirit isn’t confined to traditional economic centres.”
Source: Australian Bureau of Statistics state and territory business data, 2023 to 2024
Small business dominance continues
The business size analysis reveals the continued dominance of smaller enterprises in Australia’s economy. 91.6% of businesses generated turnover below $2 million, with 24.2% making under $50,000 annually. This distribution underscores the importance of small business policy and support systems in driving overall economic health.
Interestingly, while small businesses dominate numerically, the fastest-growing revenue segment consisted of businesses with turnover above $10 million, which expanded by 6.6%. This suggests that while many new businesses start small, those that achieve significant scale are growing rapidly.
Strategic lessons for business growth and market readiness
The surge in business formation offers valuable insights for both aspiring entrepreneurs and existing business owners. Jones emphasizes that this wave of activity is both encouraging and instructive: “For aspiring entrepreneurs and growing small businesses, this wave of new business activity is both encouraging and instructive.
“First, it signals strong market dynamism. High levels of entries, even alongside a 14% exit rate, show that innovation and risk-taking are happening at scale. This churn is not a sign of fragility but of a responsive and adaptable business ecosystem.”
The data reinforces a critical principle that extends beyond mere idea generation. As Jones notes: “Growth doesn’t come from ideas alone, it’s built on strong foundations.” This operational readiness becomes particularly crucial in an environment where 91.6% of businesses generated turnover below $2 million, with 24.2% making under $50,000 annually.
The growth multiplier
Recent research from MYOB, involving 1,000 small businesses, reveals that 44% of businesses that increased their digitization levels reported improved productivity. For mid-sized businesses, the impact is even more pronounced: digitally engaged businesses grow up to 28% faster and generate significantly more revenue per employee.
Jones argues that digital adoption has moved beyond optional enhancement to strategic necessity: “The most successful entrants and scale-ups are those who embrace technology early. The businesses that invested in integrated platforms to manage finance, operations, and customer engagement are now seeing faster decision-making, better margins, and improved customer experience.”
The statistics on return on investment are compelling: 83% of mid-market businesses that upgraded their systems reported positive ROI within 12 months, while 31% of small businesses found that digital tools helped them become more profitable. As Jones puts it: “That’s not just smart investment, it’s strategic necessity. The market rewards agility, and agility demands systems that support real-time insights and scalability.”
In the current business environment, Jones emphasizes that “in an environment where over 91% of businesses have turnover below $2 million, streamlining operations with the right technology can be a decisive competitive advantage.”
The ABS has announced significant changes to how business data will be collected and reported. The current quarterly business statistics series will be discontinued, replaced by a new Business Characteristics Asset under the Big Data Timely Insights program. This modernization promises more granular data on small businesses and more timely insights on business formation and resilience.
Source: Australian Bureau of Statistics modernization announcement, 2024
The opportunity landscape for 2025
The 2023 to 2024 data presents a clear narrative: Australia’s business environment is characterized by robust entry rates, manageable exit rates, and significant structural evolution. The growth in non-employing businesses alongside strong company formation suggests that entrepreneurs are finding diverse pathways to market entry.
Jones acknowledges the challenges while emphasizing the opportunities:
“Yes, there are challenges, rising costs, competitive pressures, and global uncertainty. But the ABS data proves that Australians are not sitting back. They’re starting businesses at scale, and they’re backing themselves to succeed. For small and mid-sized businesses, this is your moment too.”
For aspiring business owners, the statistics indicate favorable conditions across multiple sectors and regions. The emphasis on digital transformation among successful businesses suggests that technology adoption isn’t optional, it’s a competitive necessity. Jones offers practical guidance for capitalizing on current conditions: “The key is to move with intent: invest in tools that help you work smarter, set clear operational goals, and stay close to your customer.
With strong digital foundations and commitment to continuous improvement, 2025 could be a breakout year for your business.”
The combination of strong net business growth, geographic diversification, and evolving business structures positions Australia’s entrepreneurial ecosystem for continued expansion. With over 436,000 new business entries in a single year, Jones concludes: “The numbers don’t lie: it’s a great time to be building something in Australia.”
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