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Current as of Thursday, 02 March 2023.
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NSW Small Business Strategy 2023-26
Small business landscape
Small business sector
NSW has two preferred definitions for small businesses: aggregated annual turnover
less than $10 million; or fewer than 20 full-time equivalent employeesii
840,000
Total small businesses in NSWiii, accounting for 98% of all NSW businesses. Over 44,000 small businesses have opened since July 2021, an increase of 5.5%. This is the highest growth rate in the last 10 years.iv
34%
Small businesses in Australia are based in NSWv.
1.8 million
People that NSW small businesses employ, accounting for 45% of the NSW private sector workforcevi.
275,000
Small businesses that are based in regional NSW, accounting for 33% of all NSW small businessesvii.
Who are the small business owners?
494,000
Small businesses were operated by sole traders in 2022, up from around 406,000 in 2013 (an increase of 12.6%)viii.
72%
aged 40 or older
20%
aged 30-39
8%
aged under 30
34%
are womenix
35%
are born overseasix,x.
<1%
Aboriginal and Torres Strait Islander people.
<1%
have a disabilityxi.
Closing the gap
NSW is strongly committed to increasing economic participation for Aboriginal and Torres Strait Islander people through actions under Closing the Gap, and many more projects. The actions in this Strategy will support work that has seen a doubling of small businesses owned by Aboriginal or Torres Strait Islander people in NSW in recent years.
The NSW small business sector has continually grown since 2013, despite the challenges of natural disasters and the COVID pandemic.
| 2013 | 2017 | 2021 | |
|---|---|---|---|
| Number of people employed in small and micro-businesses | 1.52 million | 1.65 million | 1.8 million |
| Wages and salaries earned by small and micro-business employees | $42.9 billion | $54.4 billion | $63.7 billion |
| Sales and service income by small and micro-business | $281.1 billion | $361.5 billion | $424.9 billion |
Note: Figures have been rounded
Case study: Aboriginal Artist
Lizzy is an Aboriginal self-taught contemporary artist born and raised on Wiradjuri Land, Dubbo who sells commissioned artworks, originals, and prints. Her artwork was featured on television in 2021.
Lizzy had a decline in work due to the COVID-19 pandemic and decided to focus on her art full time. She reached out to Business Connect to seek advice on turning her hobby into a business venture. She was helped with many aspects of developing her business such as business structure, preparing for an accountant and marketing.
Lizzy’s business continues to grow and she has received further help to navigate the many business collaboration opportunities that have presented themselves after appearing on television.
About the data
i.ABS 8165.0, Counts of Australian Businesses, including Entries and Exits.
iiTreasury Policy Paper 22-08 Small Business Definition.
iii.ABS 8165.0, Counts of Australian Businesses, including Entries and Exits.
iv.Non-employing businesses and businesses with 1-19 employees.
v.ABS 8165.0, Counts of Australian Businesses, including Entries and Exits.
vi.ABS 8155.0, Australian Industry 2020-21 (which covers private non-financial businesses). Note: percentage of people employed by small businesses in NSW is calculated by dividing the number of small business employees by the total number of employed persons as reported in ABS 8155.0.
vii. Estimated from ABS 8155.0 Australian Industry, 2020-21.viii.ABS 8165.0, Counts of Australian Businesses, including Entries and Exits.
ix.ABS, 2021 Census.
x.This is calculated using the year of arrival in Australia as a proxy for whether the respondent was born overseas. If the place of birth indicator is used, then the result would be 36 per cent.
xi.The need for assistance with core activities is used as a proxy for disability.
xii.ABS 8165.0, Counts of Australian Businesses, including Entries and Exits.