The Institute of Public Affairs (IPA), Australia’s premier free market think tank, is dedicated to preserving and strengthening the foundations of economic and political freedom.
The Parliamentary Research Brief program is designed to provide politicians and policy makers around the country with succinct information on various policy areas.
Our new research brief outlines the decline to small business and entrepreneurship in Australia.
The PRB finds that:
- In 2000, 20 per cent of total employment was comprised of owner-managers. That rate dropped to just 16 per cent in 2018.
- The percentage of workers employed in small businesses has declined to 44 per cent in 2017 from over 50 per cent a decade ago.
- Less than one per cent of businesses with one to four employees in 2017 transitioned into employing more than four employees in 2018. This is well below the historical transition rate of around six per cent.
To support small business creation, governments should cut red tape, reduce the corporate tax rate, and liberalise Australia’s industrial relations system.
A copy of the report can be read below or downloaded here.
If you require any further information or would like to discuss any of the data included, please do not hesitate to contact me.