Despite the current inflation crisis, new research reveals that the tough economic conditions have not deterred Australia’s sole traders from prospering and enjoying the freedom that working for themselves offers.
The latest Hnry Sole Trader Pulse report found that 75 per cent of Aussie sole traders remain happy in their roles, with 68 per cent saying they enjoy the freedom of independent earning and 56 per cent saying they have a good work-life balance.
“It’s undeniably tough out there for self-employed people, however, as self-starters, they have the skills, mindset and resilience needed to take on the challenge with confidence,” Karan Anand, Managing Director of Hnry Australia, said.
“While there are variations, on the whole, we are seeing more sole traders feeling positive about the year ahead (45 per cent) than about their financial performance over the past year (38 per cent), with just 15 per cent feeling pessimistic,” Anand added. “Plus, the majority (56 per cent) feel secure in their jobs and in their financial security, with over half (57 per cent) reporting solid personal satisfaction and happiness from self-employment.”
Anand asserts that the results tell prove that the personal freedom, self-reliance and lifestyle benefits that come from working for yourself means Aussie sole traders are ready to roll their sleeves up and weather the storm.
The positive outlook prevails despite the research revealing that 75 per cent of sole traders paying more for supplies and services in the past three months, up from 70 per cent in March 2023, while 63 per cent are either dipping into their savings or spending less.
In addition, 72 per cent are actively trying to save on business expenses as prices skyrocket. However, only 28 per cent were able or are willing to increase their prices compared to this time last year (56 per cent) as many fear this will turn clients away or is beyond their control. As a result, 28 per cent are working more hours to cover the costs.
High taxes and financial admin are also posing a challenge to Australia’s self-employed, as the average sole trader spends a full day’s work (eight hours) per week on their financial affairs, an hour more than reported in the past three quarters. This is particularly high for tradies (10 hours) and consultants (nine hours).
“More than ever, time is money for sole traders,” Anand said. “Losing a day per week on financial admin, plus spending an average of $348 a month on tax and financial affairs, is redirecting their funds and attention away from what really matters – excelling at their jobs. These misspent hours equate to a startling $28 billion lost in productivity each year.
“As the economic outlook remains uncertain, it’s more crucial than ever for sole traders to receive the support required to unlock the sector’s full potential, whether that’s through a tax break or additional tax relief,” Anand concluded.
