Parpera “State of Australian Small Business” report reveals urgent need for action
Parpera, a leading fintech company dedicated to making business easy for Australians, announced this week the release of its inaugural report, “The State of Australian Small Business 2024”.
This comprehensive analysis offers a deep dive into the current landscape of small businesses across Australia, highlighting both the underlying drivers of growth in entrepreneurial activity and the urgent challenges that need to be addressed.
Key Findings:
- Unprecedented Growth: Over the past decade, the number of small businesses in Australia has grown from 2 to 2.6 million, reflecting a compound annual growth rate of 3%. This surge is driven by Australians’ passion, creativity, and desire for independence.
- Economic Disparities: Despite a resilient economy, many Australians are being left behind. Real wages have declined by a cumulative 2% over the past ten years, and the benefits of economic growth are not reaching those who need them most.
- The Rise of Solo Entrepreneurs: The report reveals a significant 3.2% annual increase in solo entrepreneurs, underscoring both the entrepreneurial spirit of Australians and the economic pressures pushing individuals toward self-employment.
- Entrepreneurial Barriers: High setup costs, complex regulations, and ongoing administrative burdens continue to pose significant challenges for new and existing business owners.
A Call to Action:
In response to these findings, Parpera is proposing a seven-point action plan aimed at reducing barriers, costs, and the difficulty of doing business in Australia. The plan calls for:
- Increasing market collaboration to drive innovation.
- Accelerating adoption of digital tools to enhance efficiency and competitiveness.
- Encouraging competition among service providers to lower costs.
- Reducing compliance complexity to ease administrative burdens.
- Simplifying business setup by reducing costs and administrative barriers to entry.
- Harmonising licensing frameworks nationally to reduce operational and expansion friction.
- Modernising government services to be more efficient and user-friendly.
“Our report is not only a reflection of the current state of Australian small businesses; but also a call to action,” said Daniel Cannizzaro, Founder and CEO of Parpera. “We need to greater collaboration across the ecosystem to address these systemic challenges to unlock the potential of Australian entrepreneurs and ensure that the benefits of economic growth are shared more equitably.”
Availability:
“The State of Australian Small Business 2024” report is available for download on Parpera’s website. It is a must-read for policymakers, industry leaders, and anyone involved in the small business ecosystem committed to fostering a thriving entrepreneurial environment in Australia.
