Female sole traders grew 31% in five years, double the male rate. ASBFEO analysis reveals diversity and challenges facing Australia’s enterprising cohort.
What’s happening: Nearly 1.7 million Australians operated as sole traders in 2021–22, according to new analysis by the Australian Small Business and Family Enterprise Ombudsman. Female sole traders grew by 31% over five years, more than double the rate for men.
Why this matters: The ASBFEO findings reveal vulnerabilities around payment practices and support gaps, particularly for culturally diverse operators and those managing health or caring responsibilities alongside their enterprises.
Australia’s sole traders represent a vibrant enterprise cohort that has long been hiding in plain sight, according to the Australian Small Business and Family Enterprise Ombudsman.
New analysis drawing on customised integrated administrative data in the ABS’ DataLab insights reveals nearly 1.7 million Australians operated as sole traders in 2021–22. ASBFEO Ombudsman Bruce Billson 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,’ says Billson. ‘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.’
Women driving growth
Female sole traders grew by 31% over five years, more than double the rate for men. Women now make up 40% of sole traders, with many balancing business operations alongside caring responsibilities.
The growth reflects broader shifts in how Australians structure their working lives. In an economy where working lives have become more fluid, with people blending employment, enterprise and caring roles, understanding sole traders has become increasingly crucial.
Health care, social assistance and transport are driving growth, meeting needs in aged care, disability support and delivery services. These emerging industries align with demographic changes and evolving service delivery models.
Payment vulnerability exposed
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.
The payment challenges reflect power imbalances in commercial relationships. Sole traders operating in sectors with concentrated buyers often lack negotiating leverage to enforce payment terms.
Others juggle long term health conditions, disability or significant caring responsibilities, all while keeping their business afloat.
‘Sole traders are the unsung heroes of our economy,’ Billson says. ‘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.’
Regional and diverse
A quarter of sole traders operate outside major cities, providing essential services and economic activity in regional Australia. The regional presence underscores their role in communities where business diversity matters for local resilience.
Culturally and linguistically diverse sole traders account for 37% of the total, with strong growth in transport and warehousing, sectors critical to supply chains and the gig economy.
The cultural diversity within the sole trader cohort challenges assumptions about who operates small enterprises in Australia. CALD representation exceeds their proportion in the broader population, particularly in transport and logistics.
Policy rethink needed
Billson says the findings demand a policy rethink across multiple areas. The analysis reveals gaps between regulatory settings designed for larger businesses and the realities facing sole traders.
‘Even a sharper focus on sole traders when thinking about tax simplification and regulatory streamlining would deliver big dividends,’ Billson says. ‘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.’
The ombudsman’s recommendations include improving visibility and insights to capture the true scale and diversity of sole traders, fairer payment practices to protect those most exposed to late or non-payment, and support for carers and those with health challenges.
Other priorities include inclusive programs that embrace cultural diversity and regional dynamics, practical know-how and tech support to help sole traders thrive, and regulator evaluation to ensure compliance obligations are right-sized for micro-businesses.
‘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 says.
Current programs often fail to account for sole traders juggling multiple roles. Regulatory compliance designed for larger businesses creates disproportionate burdens. Payment protection mechanisms remain inadequate for those without bargaining power. Support services vary significantly across states, creating inconsistent access to assistance.
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