70% of Aussies aspire to be their own boss, but 2 in 5 claim funding is a barrier

Breaking down the barriers to entrepreneurship for aspiring Australian business owners could create 4.5 million new businesses¹

New research reveals that greater financial support, regulatory change and government-led initiatives that make it easier to start a business are seen as the most important changes needed to grow Australian entrepreneurship. Doing so could help unleash the potential of millions of aspiring entrepreneurs, driving innovation and economic prosperity for the nation. 

New research from Shopify of 2,220 Australians and 480 business owners, conducted by Censuswide, shows a burgeoning entrepreneurial spirit across the country:

Almost three-quarters of Australians (70%) express a desire to own their own business if all other factors were equal.

This interest spans across age groups, with younger demographics showing the highest entrepreneurial enthusiasm – a substantial 84% of 16-24s have entrepreneurial ambitions.

One in five Australians (21%) already own their own business, and an equal proportion (21%) have seriously considered starting one.

Three-quarters (76%) of aspiring entrepreneurs in Australia say they have wanted to start their own business for three or more years².

Entrepreneurial motivations are diverse

Among Australia’s aspiring entrepreneurs, the top reasons cited for starting their own business are:

The opportunity to earn more money (58%)

A desire to be their own boss (50%)

Work flexibility (40%) 

Alongside the pull of higher income and independence, some factors push Australians into entrepreneurship:

13% of those seriously considering owning a business are driven by concerns about perceived job obsolescence due to technological advancements.

16% of business owners in Australia started their venture after being made redundant from their previous job. 

Financial constraints and government support are holding aspiring entrepreneurs back

The appetite for entrepreneurship is prevalent but the barriers to entry remain high. Among those who have thought about starting a business, but do not have serious plans in place:

50% cited financial obstacles as a key issue

35% said they lacked confidence

34% said they lacked knowledge

24% were concerned about their skillset

When asked which factors would make them more interested in starting a business, Australians who had briefly considered it said:

Government programs to support potential business owners could sway them (58%)

A decrease in the cost of living would encourage entrepreneurship (43%)

While the majority of Australians want to be their own boss, their ability to fund the business could be limiting.

73% would be prepared to invest their own money

43% expressed a lack of money to start

20% highlighted high interest rates on business loans as a key challenge

Shaun Broughton, Managing Director, APAC at Shopify comments: “Australians are enthusiastic entrepreneurs, particularly younger Aussies. Addressing financial obstacles is essential to unlock a vibrant entrepreneurial ecosystem and unearth the potential of aspiring entrepreneurs across the country. By enhancing access to funding, reducing financial risks, and encouraging people to start a business, we can help reduce barriers to entry for Australian entrepreneurs to drive stronger economic growth, innovation and employment for all.”

The path to entrepreneurship is not linear

Building a business rarely follows a predictable trajectory, and the path to entrepreneurship doesn’t necessarily mean going all in from day one. The research found:

27% of Australian business owners went full-time into their company from the offset

37% started their business as a side hustle

20% turned their side hustle into a full-time venture

16% started their business after leaving the workforce (i.e. retirement or after maternity leave).

Moreover, though initial failure isn’t unusual in the entrepreneur community, it doesn’t hold them back from building new businesses.

Over a third (38%) of Australian business owners previously started a business that was unsuccessful

46% of entrepreneurs had at least one previous business before achieving success

32% of successful business owners had two to three unsuccessful businesses first

Encouragement and experience can be powerful enablers

Support networks and prior experience in their chosen field were seen as strong enablers for entrepreneurship:

40% of Australian business owners — more than any other country surveyed — said that encouragement from people they knew was particularly helpful when they started out.

41% of aspiring entrepreneurs also recognise the role of family and friends support in helping them start a business

38% of aspiring entrepreneurs said prior work experience in the field would help them start their business

24% said they would lean on their personal and community networks to start their business.

¹ 21.79% (those who have seriously considered owning their own business) of Australian population excluding under 19s (20.8m) Population according to 2021 Census = 25.4m minus 4.6m U19s)

² Combination of those who selected ‘3-5 years’, ‘6-10 years’, ‘11-15 years, ‘16-20 years’ and ‘More than 20 years’

Methodology

Shopify’s Aspiring Entrepreneurship 2024 Report was conducted by Censuswide on behalf of Shopify, among 14,047 General Consumers and 1,428 business owners (SMEs) in the UK, Canada, Australia, France, Italy, Germany, and Spain between 08.05.2024 - 13.05.2024. Among those respondents, 2,220 Australians and 480 Australian business owners were surveyed. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles and are members of The British Polling Council.

For more information, visit shopify.com.