Shopify has released new research conducted in partnership with Censuswide which indicates a continuing growth of entrepreneurial aspirations in Australia but some key challenges that need to be addressed.
The research found that 70 per cent of Australians have a desire to own their own business if all other factors were equal. This interest spans across age groups, with younger demographics showing the highest entrepreneurial enthusiasm, with 84 per cent of 16-24s having entrepreneurial ambitions. And 21 per cent) already own their own business, while another 21 per cent have seriously considered starting one.
Among Australia’s aspiring entrepreneurs, the top reasons cited for starting their own business are the opportunity to earn more money (58 per cent), a desire to be their own boss (50 per cent), and work flexibility (40 per cent).
In addition, 13 per cent of those seriously considering owning a business are driven by concerns about perceived job obsolescence due to technological advancements. Exemplifying this issue is the fact that 16 per cent of business owners in Australia started their venture after being made redundant from their previous job.
Despite the prevalent drive towards entrepreneurship, many are being held back by high barriers to entry, with 50 per cent citing financial obstacles as a key issue, 35 per cent citing lack of confidence, 34 per cent citing lack of knowledge, and 24 per cent citing concerns about their skillset.
With regards to the financial challenges, the research found that 73 per cent would be prepared to invest their own money but 43 per cent expressed a lack of money to start. In particular, 20 per cent cited high interest rates on business loans as a key challenge
When asked which factors would make them more interested in starting a business, 58 per cent answered that government programs to support potential business owners could sway them, while 43 per cent said that a decrease in the cost of living would encourage entrepreneurship.
While the majority of Australians want to be their own boss, their ability to fund the business could be limiting.
“Australians are enthusiastic entrepreneurs, particularly younger Aussies,” Shaun Broughton, Managing Director for APAC at Shopify, commented. “Addressing financial obstacles is essential to unlock a vibrant entrepreneurial ecosystem and unearth the potential of aspiring entrepreneurs across the country. By enhancing access to funding, reducing financial risks, and encouraging people to start a business, we can help reduce barriers to entry for Australian entrepreneurs to drive stronger economic growth, innovation and employment for all.”
The research also found that despite the initial failure some business owners experienced in their entrepreneurial ventures, it has not held them back from building new businesses. In fact, 38 per cent of entrepreneurs previously started a business that was unsuccessful, while 46 per cent had at least one previous business before achieving success A further 32 per cent had two to three unsuccessful businesses first
Support networks and prior experience in their chosen field were seen as strong enablers for entrepreneurship. The research noted that 40 per cent of Australian business owners said that encouragement from people they knew was particularly helpful when they started out. Other enablers include support from family and friends (cited by 41 per cent of aspiring entrepreneurs), prior work experience (cited by 38 per cent), and personal and community networks (cited by 24 per cent).
