Leslie Massey
Small and Medium Enterprises (SMEs) are crucial to Australia's economy, employing about two-thirds of Australia's workforce, or around 70% according to some sources. SMEs are defined as businesses with fewer than 200 employees, or fewer than 20 according to the Australian Bureau of Statistics. In 2025, SMEs continued to drive job creation, innovation, and economic growth, contributing to over 97% of all businesses. They are key drivers of job creation, employing over 5.1 million Australians.
| Characteristics | Values |
|---|---|
| Percentage of all Australian businesses | 97.2% (June 2024) to over 98% (2024) |
| Number of employing businesses | 999,161 (June 2024) |
| Number of non-employing businesses | 33,783 (2023-24) |
| Total number of businesses | 2,662,998 (June 2024) |
| Number of people employed | Over 5.1 million (2025) to around 70% of the workforce (2024) |
| Definition | Businesses with fewer than 200 employees (some sources state fewer than 20 employees) and an annual turnover of under $50 million |
| Contribution to GDP | 32% (2022-23) |
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What You'll Learn
SMEs employ around 70% of Australia's workforce
Small and Medium Enterprises (SMEs) are crucial to Australia's economy, employing around 70% of the country's workforce. SMEs are defined in Australia as businesses with fewer than 200 employees, and they account for over 97% of all businesses.
The importance of SMEs to the Australian economy is evident through their contribution to employment, innovation, and economic growth. They are key drivers of job creation, with small businesses alone employing over 5.1 million Australians. This number is expected to increase, as SMEs continue to drive job creation in 2025.
The Australian Bureau of Statistics (ABS) defines small businesses as those with fewer than 20 employees. As of June 2024, 97.2% of all Australian businesses were small businesses, showing a significant increase from the previous year. The number of actively trading businesses in the Australian economy as of June 2024 was 2,662,998, with 999,161 of these being employing businesses.
SMEs operate across various sectors, with notable concentrations in health care, retail trade, professional services, and construction. These sectors employ the greatest number of people, contributing significantly to Australia's economic activity.
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SMEs account for over 97% of all Australian businesses
Small and Medium Enterprises (SMEs) are crucial to Australia's economy, contributing significantly to employment, innovation, and economic growth. SMEs are defined in Australia as businesses with fewer than 200 employees, or an annual turnover of under $50 million.
In June 2024, 97.2% of all Australian businesses were classified as small businesses, employing fewer than 20 people. This is a slight decrease from the previous year, when SMEs accounted for over 98% of all businesses and employed around 70% of the workforce.
SMEs are key drivers of job creation, employing over 5.1 million Australians. They are present across various sectors, with notable concentrations in health care, retail trade, professional services, and construction.
The Australian Taxation Office (ATO) defines small businesses as those with a turnover of $10 million or less, and they are eligible for government incentives, grants, and alternative lending options to support their growth and navigate economic challenges.
In summary, SMEs play an essential role in Australia's economy, contributing to job creation and economic growth. Their high number, accounting for nearly all Australian businesses, underscores their importance in driving innovation and supporting employment across various industries.
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SMEs contribute to two-thirds of Australia's workforce
Small and Medium Enterprises (SMEs) are crucial to Australia's economy, employing around 70% of the country's workforce. This equates to over 5.1 million people and constitutes about two-thirds of Australia's total employed population.
SMEs are defined in Australia as businesses with fewer than 200 employees, or an annual turnover of under $50 million. The Australian Bureau of Statistics (ABS) defines small businesses, which are those with fewer than 20 employees, as making up 97.2% of all Australian businesses as of June 2024. This definition is also used by the Australian Taxation Office (ATO) to describe businesses with a turnover of $10 million or less.
SMEs are key drivers of job creation, and they operate in various sectors, with notable concentrations in health care, retail trade, professional services, and construction. In addition to employment, they also contribute significantly to innovation and economic growth, generating $500 billion of economic activity, or about one-third of Australia's GDP.
The number of businesses in Australia increased between 2023 and 2024 across all sizes, except for small businesses with 1-4 employees, which decreased by 1.4%. Despite this, small businesses continue to be the backbone of the Australian economy, with a net growth of 5.4% in 2023-24, and they are expected to drive job creation, innovation, and economic growth in 2025.
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SMEs in Australia are defined as businesses with fewer than 200 employees
Small and Medium Enterprises (SMEs) are critical to Australia's economy, contributing significantly to employment, innovation, and economic growth. SMEs are defined in Australia as businesses with fewer than 200 employees, and they account for over 97% of all businesses in the country.
The Australian Bureau of Statistics (ABS) defines small businesses as those with less than 20 employees. As of June 2024, 97.2% of all Australian businesses were small businesses. While the ABS does not provide a specific definition for medium-sized businesses, it is safe to assume that medium enterprises fall between small enterprises (less than 20 employees) and large enterprises (over 200 employees).
SMEs play a crucial role in Australia's job market, employing around 70% of the workforce, which equates to over 5.1 million people. This makes them key drivers of job creation, and they are responsible for about two-thirds of Australia's workforce. Notably, the industries with the highest SME employment include health care, retail trade, professional services, and construction.
In addition to their impact on employment, SMEs also contribute significantly to Australia's GDP. In the 2022-23 financial year, small businesses contributed approximately 32% to Australia's GDP, while medium businesses accounted for 22%. Combined, SMEs contributed one-third of Australia's GDP, or $500 billion in economic activity.
The Australian government recognizes the importance of SMEs, and they are eligible for various incentives, grants, business advisory services, and alternative lending options to support their growth and help them navigate economic challenges.
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Small businesses employ over 5.1 million Australians
Small businesses are critical to Australia's economy, employing over 5.1 million people and contributing to two-thirds of Australia's workforce. They are key drivers of job creation, constituting one-third of Australia's GDP.
SMEs, or small and medium enterprises, are defined in Australia as businesses with fewer than 200 employees. They make up over 97% of all businesses in the country, with small businesses alone accounting for 97.2% in June 2024. This equates to almost 2.7 million actively trading businesses in the Australian economy.
The importance of small businesses to the Australian economy is evident in their contribution to employment, innovation, and economic growth. They are responsible for generating $500 billion in economic activity. Notably, small businesses contributed approximately 32% to Australia's GDP in the 2022-23 financial year, while medium businesses contributed 22%.
The Australian Bureau of Statistics (ABS) defines small businesses as those employing fewer than 20 people. This definition is consistent with the common understanding of small businesses, which typically have fewer employees and lower turnover.
The high number of people employed by small businesses in Australia highlights their significance as a driving force behind the country's economic prosperity and job creation.
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Frequently asked questions
SMEs employ around 70% of Australia's workforce, contributing to about two-thirds of the country's workforce.
The Australian Bureau of Statistics (ABS) defines SMEs as businesses with fewer than 200 employees, while the Australian Taxation Office (ATO) defines small businesses as those with a turnover of $10 million or less.
As of June 2024, there were 999,161 employing businesses in the Australian economy, with small businesses accounting for 97.2% of all businesses.
Small businesses employ over 5.1 million people in Australia, contributing significantly to economic growth and job creation.
SMEs operate in various sectors, with notable concentrations in health care, retail trade, professional services, and construction.
