Global small business platform, Xero has released key research into the current state of Australia’s small business sector, and where opportunity lies for these businesses and Australia’s economy, over the coming decade.

The report, ‘Where opportunity lies: Australia’s new small business boom’, conducted in partnership with Accenture, shows that Australia is in a small business boom that is set to continue, with a further estimated 3.5 million small businesses being created over the next 10 years.

Xero managing director for Australia and Asia, Joseph Lyons said, “Xero’s landmark report arrives at a hopeful chapter in our nation’s pandemic journey: one that sees a surge in small business creation as Australians continue to adapt to uncertainty.

“Conditions are favourable for Aussies seeking to strike out on their own. We’ll see this play out with an expected 3.5 million small business registrations contributing a total of $370 billion to the Australian economy over the next 10 years.”

Xero’s report has revealed new small business registrations are at unprecedented levels, growing 34% from 225,000 in 2019 to over 300,000 in 2021. This rapid growth in response to an economic crisis is unique, and the reverse of what occurred following previous periods of economic uncertainty such as the 2007-09 Global Financial Crisis.

External factors such as increased job uncertainty, demand for greater flexibility, digitisation and the rise of the gig economy, are likely to have contributed to the surge in new business registrations.

“More than ever, entrepreneurs are charting a new path in search of meaningful careers – from those who experienced redundancies to the burned out workers ditching the corporate grind, the next generation of resilient changemakers are leading our economy forward – and they’re not looking back,” Lyons added.