Australia’s small business owners were spurred to start their own business after having difficulty finding full-time employment due to barriers such as language, age, disability and skills, according to a newly released study of the SME market.
The study by online accounting firm Xero reveals almost one in six (16%) of SMEs were spurred to start their own business because of these issues, although more than half of them (55%) cite wanting to be their own boss as one of the top reasons for starting their business.
“It’s surprising and inspiring that many Aussie small business owners are scratching their entrepreneurial itch in order to overcome employment obstacles,” said Trent Innes, managing director, Xero Australia.
“While setbacks due to these factors are disappointing to hear about, the data demonstrates that Australians are resourceful and resilient in the face of challenges. When job prospects are tough, these Australians are creating their own opportunities by starting a small business – and it’s never been easier to do that with the support and tools now available."
{loadposition}The Xero study also found other reasons why SMEs wanted to get into their own business included:
• A desire to increase their income was the second biggest reason with 42% of respondents indicating this is a reason they went out on their own.
• More than two in five (41% ) Aussie small business owners began their venture in search of more freedom and a better lifestyle.
“Small businesses are the powerhouses of our economy, and helping them get started is something we’re really passionate about,” Innes said.
“We wanted to better understand what motivates small business owners to do what they do each day so set out to identify the small sparks behind Aussie businesses. We know this spark — that light bulb moment that leads to their small business — starts out as just something small. But it changes the lives of these people and those around them by driving growth and creating jobs. The more of these sparks we have, the quicker we can grow the small business economy.”
Innes said the survey results also showed the “hardworking nature of Aussie small business owners”, with close to three-quarters (72%) of respondents saying they go above and beyond for their customers all the time.
And, some 55% of respondents said they had taken meetings outside "business hours" while 52% threw in freebies or add-ons to win customer loyalty. A further 49% said they often chipped in their own time to run the business.
“It’s really important to note that starting a small business isn’t just about having an idea, getting going, and then sitting back and watching the money roll in,” Innes said.
“It’s hard yakka, and it’s clear that going the extra mile for customers is a key part of why Aussie small business owners are thriving.”
More than a quarter (28%) of Australian small businesses said they were successful from day one, with a further 38% becoming successful within the first year.
“Aussie small businesses are thriving, and we see this passion, dedication, and desire to succeed every day,” Innes concluded.