What is considered an SME (small to medium enterprise, for those who were afraid to ask) in Australia? The ATO (Australian Taxation Office) bases it on income. You’re a small business if your turnover is below $10m.

The ABS (Australian Bureau of Statistics), however, uses people employed as the key metric, as does ASBFEO (the Australian Small Business and Family Enterprise Ombudsman). If you've got under 20 employees, you’re a small business, between 20 and 199, you’re officially medium, while over 200 you’re playing at the big end of town, and considered large.

How important are Australian SMEs?

In its most recent Small Business Counts survey, published in December 2020 using stats up to June 2019, ASBFEO underlined just how important SMEs in Australia are to the country’s economy. with 99.8% of businesses in Australia being SMEs.

The most recent ABS figures (table, below) to June 2021,underline the importance, even after everything we’ve all been through since 2019.

 Employees  Firm Count  %
 0-19 (small)  2,341,840  97.5
 20-199 (medium)  56,046  2.3
 200+ (large)  4,368  0.2
 Total  2,402,254  100.0

 

The ABS and ASBFEO split Australian small businesses down even further. The below table shows the June 2021 split of SMEs in Australia.

 Category  Employees  %
 Non-employing  1,410,049  62%
 1-4 employees (micro business)  711,364  31.3%
 5-19 employees (small)  220,427  9.7%
 Total  2,271,839  100%

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How much money do Australian SMEs contribute to the economy?

An awful lot, it turns out. In 2018-19 (the most recent figures available) Australian SMEs accounted for more than 50% of the country’s GDP.

 Type of business  $M
 Small business  417,946 (32%)
 Medium business  287,441 (22%)
 Large business  583,893 (46%)
 Total  1,289,280

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Which industries do Australian SMEs operate in?

Of course, Australian SMEs operate in a wide variety of industries, as shown in the table below. Predictably, percentages of SMEs are smaller in ‘big’ industries, such as telecommunications, mining, education, and utilities.

 Industry sector  Small ($m)  Medium ($M)  Total ($M)  SME share %
 Agriculture, forestry and fishing  23,964  5,555  31,425  93.93
 Rental, hiring and real estate services  61,733  9,354  83,072  85.57
 Construction  71,310  27,386  128,003  77.10
 Other services  19,124  10,044  34,420  84.74
 Professional, scientific and technical services  56,798  36,037  135,745  68.39
 Health care and social assistance (private)  36,261  19,568  97,275  57.39
 Accommodation and food services  15,023  17,056  43,275  74.13
 Retail trade  20,418  17,539  78,927  48.09
 Transport, postal  and warehousing  19,503  13,801  79,782  41.74
 Wholesale trade  16,689  25,275  70,300  59.69
 Arts and recreation services  3,400  4,486  14,901  52.92
 Manufacturing  24,710  32,140  112,271  50.64
 Administrative and support services  13,383  20,149  67,285  49.84
 Public administration and safety (private)  1,217  2,021  6,477  49.99
 Education and training (private)  5,533  9,825  30,756  49.93
 Mining  19,794  25,125  187,131  24.00
 Electricity, gas, water and waste services  5,295  6,597  51,414  23.13
Information Media and Telecommunications  3,791  5,483  36,819  25.19
Total selected industries  417,946  287,441  1,289,278  54.71

‍What is the survival rate for Australian SMEs?

Stats from the ABS show that of the non-employing businesses in operation in 2017, 59.2% were still in operation in 2021.

72.7% of businesses with 1-19 employees were still going, while 83.8% of medium sized businesses (20-199 employees) had survived that four-year period. Big business, out of interest, had an 87.7%survival rate.

Support for Australian SMEs

If you’re an Australian SME, Bizcap is committed to helping you access the funding you need, regardless of your credit history. Call us today on 1300 922 223, or apply online to find out whether Australia’s most open-minded lender can help your business succeed.