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There’s a concerning trend for Australia’s innovation and economic growth capabilities — and it’s due to a lack of millennials and Gen Z in the business ownership space, according to a leading accountancy body.
CPA Australia said millennials and Gen Z are “missing in action” from the Australian small business scene, based on the results of the latest Asia-Pacific Small Business Survey.
Across 11 regions surveyed, Australia had the highest percentage of small business owners aged 50-plus.
It also placed ninth out of 11 when it came to business owners under the age of 40.
CPA Australia’s senior manager for business and investment policy, Gavan Ord, has used the data to query, “Where have all the young business owners gone?”
Labelling them “generation MIA”, Mr Ord conceded that “Australia has been ranked among the worst in Asia-Pacific for attracting young people into small business ownership since we started our survey in 2009.”
He believes the federal government needs to launch a public enquiry to find out what is stopping young people from launching businesses, especially since “the survey results show that young business owners and founders are a necessary ingredient for Australia’s economic future, our digital capabilities and future innovations.”
“We need Australians of all ages running and owning small businesses,” he continued, stressing the benefits diversity brings to the economy.
It’s particularly concerning considering Australian small businesses already have a much lower level of digital capability than their Asia-Pacific peers and are among the least likely to innovate in 2023.
One in three Australian small businesses (30.4 per cent) don’t use social media, compared to a regional average of 15.4 per cent.
The analysis also found that businesses that did invest in technology were focused on updating their website and computer hardware rather than tapping into new and innovative options such as artificial intelligence, pointing to a reluctance to entertain innovation and new ideas.
That conclusion was compounded by the survey finding that just 14 per cent of respondents surveyed said they were looking to introduce a unique product or service to the market in 2023 — which was the worst result in the Asia-Pacific region.
According to Mr Ord, “A lack of innovation is a drag on economic growth and productivity that we will feel for years to come.”
He believes that encouraging new talent to launch small businesses can boost long-term innovation — and that’s a task that the government must take up.
“The government needs to ensure running a small business is an attractive option for young people who can bring their digital skills to the sector,” he shared.
“We want young people to seize the opportunity to control their own destiny.”
“This is a huge chance to inspire and encourage young people into the business community as Australia continues to recover. We want the government and current business owners to explore how to attract young minds into this critical sector.”
Cyber security also of major concern
Mr Ord also flagged the knock-on effects of a lack of innovation and digital awareness on cyber security.
While only a quarter of Australian small businesses consider cyber attacks to be a possibility in 2023 across the Asia-Pacific region, that figure was closer to half.
Just 44 per cent of small businesses reviewed their cyber security protections within the last six months, ranking Australia eighth out of 11.
That same eighth-place ranking flowed through to IT assistance, with just one in five Australian small business owners seeking advice from IT consultants or specialists.
What constitutes “best practice” cyber protection in the real estate space?
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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