With JobKeeper coming to an end (March 2021). We anxiously await the impact the cessation of JobKeeper will have on cash flow for Small Business. Along with what the financial viability will be for many small businesses in Australia.
As illustrated below, small business plays a critical role in the prosperity of the Australian economy. Small business employs almost half of the Australian workforce. However, they also tend to have lower survival rates and more volatile revenues when compared to larger businesses.
It is important that we do not underestimate the role these businesses play in employing Australians and growing our economy. It is essential that as consumers we continue to support our local small businesses.
Key facts about small business;
- a small business is classified as a business with less than 20 employees.
- they account for almost 98% of all businesses.
- traditionally this sector has been the fastest growing business sector.
- 61% of small business owners are aged between 45 and 59.
- small business account for 35% of Australia’s gross domestic product (GDP).
- small business employs 44% of the Australian workforce.
- agriculture, forestry and fishing small businesses are the largest employer.
- rental, hiring and real estate small businesses have the second-highest number of employees.
- construction is the third-largest in employment terms and has the highest number of apprentices and trainees.
Measured in absolute numbers. The overwhelming majority of innovative firms (classified as a business that introduced a new or significantly improved good or service, operational or organisational process or marketing method 1) are small businesses.
Should you have any questions with regard to Small Business. Please submit an online enquiry now or call Peter Quinn on +61 2 9580 9166. We also offer a FREE 45-minute consultation. For financial planning, taxation or superannuation issues you may wish to discuss.
1 ABS 8166.0 Summary of IT use and innovation in Australian business, 2016-17: Glossary
The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.