A new research brief by free-market think tank the Institute of Public Affairs details the extent of Australia’s small business crisis.
“To meet its election commitment to oversee the creation of 250,000 new small and family businesses over the next five years, the Coalition Government must cut red tape, implement industrial relations reform, and reduce taxes,” said IPA Research Fellow, Kurt Wallace.
The Research Brief by the Institute of Public Affairs, which will be sent to all Federal Parliamentarians today, finds that the percentage of workers employed in small businesses has declined to 44 per cent in 2017 from over 50 per cent a decade ago. While the share of employment in big businesses increased from 27 per cent to 32 per cent.
“There is a crisis in entrepreneurship and small business in Australia as a result of red tape, a rigid industrial relations system, and high taxes.
“Small business growth is in freefall, rates of self-employment are in decline, while rates of incumbency are rising. IPA research has found that red tape costs the Australian economy $176 billion in lost economic output.
“The latest trends indicate that red tape is disproportionately affecting small businesses compared with their larger counterparts,” said Mr Wallace.
Download the Parliamentary Research Brief here.