Female sole traders grew 31% over five years, more than double the rate for men, as women now make up 40% of Australia’s 1.7 million sole traders, according to ASBFEO Ombudsman Bruce Billson.
What’s happening: New analysis by the Australian Small Business and Family Enterprise Ombudsman reveals many are balancing business with caring responsibilities, underscoring a fundamental shift in how Australian women approach enterprise and work.
Why this matters: In an economy where working lives have become more fluid, with Australians blending employment, enterprise and caring roles, understanding this growth is crucial.
Female sole traders grew by 31% over five years, more than double the rate for men, with women now making up 40% of Australia’s 1.7 million sole traders, according to new analysis by the Australian Small Business and Family Enterprise Ombudsman.
The analysis, drawing on customised integrated administrative data in the ABS DataLab insights, reveals a vibrant enterprise cohort that has long been hiding in plain sight. Many women are balancing business with caring responsibilities, underscoring a fundamental shift in how Australian women approach enterprise and work.
Bruce Billson, ASBFEO ombudsman, says it’s time for the nation to see sole traders more clearly.
“Sole traders are not just economic participants, they are the beating heart of enterprise in our country. They’re innovators, problem solvers and community contributors. If we genuinely believe in a fair go, we need policies that recognise the real lives, pressures and possibilities of this dynamic group,” Billson said.
Female growth doubles men
Nearly 1.7 million Australians operated as sole traders in 2021-22, underscoring the scale and significance of this enterprising cohort. Women’s 31% growth rate over five years far outpaced men, reflecting changing patterns in how Australians blend employment, enterprise and caring roles.
In an economy where working lives have become more fluid, understanding sole traders has never been more crucial. Yet despite their importance, these enterprising Australians often remain overlooked in program design, regulatory settings and economic debate.
“Sole traders are the unsung heroes of our economy. They are not just economic actors, they are community builders, innovators, and problem solvers. If we truly believe in a fair go, it’s time to give sole traders the recognition and support they deserve,” Billson said.
Health care, social assistance, and transport are driving growth, meeting needs in aged care, disability support, and delivery services. Many female sole traders juggle long term health conditions, disability or significant caring responsibilities, all whilst keeping their business afloat.
The analysis reveals a quarter of sole traders operate outside major cities, providing essential services and economic activity in regional Australia, whilst emerging industries offer new opportunities for women seeking flexible work arrangements.
Payment vulnerability persists
Many sole traders carry pressures that larger businesses do not shoulder alone. In 2025, nearly half of all disputes taken to ASBFEO by sole traders in the transport, postal and warehousing sector were payment related, a stark reminder of their vulnerability in supply chains dominated by bigger players.
Billson says the findings demand a policy rethink: improve visibility and insights to capture the true scale and diversity of sole traders, implement fairer payment practices to protect those most exposed to late or non-payment, provide support for carers and those with health challenges recognising the human realities behind the ABN, create inclusive programs that embrace cultural diversity and regional dynamics, offer practical know-how and tech support to help sole traders thrive, and ensure regulator evaluation so compliance obligations are right-sized for micro-businesses.
“Even a sharper focus on sole traders when thinking about tax simplification and regulatory streamlining would deliver big dividends. Sole traders make up the vast majority of Australia’s businesses, the everyday enterprisers keeping local economies ticking. When such a large and dynamic part of our economy is overlooked, policy simply can’t keep pace with real working lives,” Billson said.
The analysis comes as data shows sole traders face increasing challenges, with more than a third experiencing revenue declines and many struggling with payment issues from larger business partners.
“If Australia is truly the land of opportunity and entrepreneurship, we must ensure sole traders, in all their variety, get the recognition and support they deserve,” Billson said.
Source: Sole Traders – The Unsung Hero of Australia’s Economy.pdf | pdf 803.08 KB
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