Retail trade is proving to be a preferred launchpad for young entrepreneurs in Australia, according to new research from CommBank.
The report shows Millennials and Gen Z are at the forefront of small business formation, collectively accounting for 62 per cent of new business account openings in the year to March 31, 2025.
Retail, alongside personal and business services and construction, emerged as the most popular sectors among these age groups. Gen Z entrepreneurs gravitate most toward construction, with retail coming in second, while Millennials favour property and business services, followed by construction and retail.
CommBank data reveals Millennials made up 49 per cent of all new business activity during the 12-month period. Gen Z contributed 13 per cent, with Gen X at 27 per cent and Baby Boomers at 10 per cent.
Since the pandemic, the age distribution of new business transaction account openings has not changed much, yet it is anticipated that Gen Z will make up a bigger share as they mature, while older groups concentrate on growing their businesses.
Rebecca Warren, CommBank’s Executive General Manager of Small Business Banking, noted that the range of challenges faced by businesses in recent years has not deterred younger entrepreneurs.
“Gen Z and Millennials account for 72 percent of all new businesses in retail trade, showing younger Australians are willing to pursue their passion despite the challenging environment this sector has faced and continues to tackle,” said Warren.
“Australian small businesses have dealt with many challenges over the last few years, and their resilience has never been more evident than in the way they’ve been navigating the challenging market, the impacts of the election, tariffs and changes to rates.”
This research coincides with CommBank’s announcement of its sponsorship of the Australian Fashion Council (AFC) Australian Fashion Week, which started in Sydney this week. The event supports young entrepreneurs, First Nations designers, and the Australian creative industry.
CommBank will serve as the presenting partner of The Frontier and the First Nations shows, featuring designers such as Liandra, Ngali, and Joseph & James.
“We are thrilled to have the Commonwealth Bank’s incredible support in 2025. CBA understands how important it is to nurture small and medium businesses in the early stages of growth. The business of fashion continues to be an exciting but challenging industry, which is why Australian Fashion Week must continue to grow and support the industry,” said Kellie Hush, CEO AFC Australian Fashion Week 2025.