Small to medium size businesses are the backbone of Australia's economy (pardon the cliché). The SME sector created approximately 7 million jobs during the 2017 financial year. In doing so, they contributed to 57% of Australia's GDP.
Who make up the SME sector? Research has shown that often the most innovative business people are found in this sector. They are nimble enough to be ahead of the curve, backed with skills and experience to understand how to grow new niche markets in traditional industries.
This makes SME business owners an invaluable resource to Australia's economy and to Australia’s competitive edge within the global market place.
SMEs play an ever increasingly important role in the global economy due to the volatility of market disruptors, new global technologies and constantly shifting goal posts.
Take for example, the “Ubers” of the market place. They disrupt traditional markets, causing large traditional competitors to fall by the way side. However it is the SMEs that are nimble enough and lack the bureaucracy, in order to change quickly with the trend. The result? SMEs have a better ods of remaining in business and thriving under changing conditions.
Customer expectations are higher than ever - wanting personal customer service. Large companies look to expand but find it hard to see through the tangle of red tape and regulations.
Who are our SME's exactly? Let's take a close look at their make up...
As you can see above, approximately 50% of SME owners have been in business for 10 years or less.
About 56% of SME owners are ‘Millennials’ or ‘Generation X’.
Big business attracts most of the attention when it comes to gender equality. Unfortunately the SME sector also has a way to go yet. 64% of SME owners and decision makers are male. Interestingly, among Millennial SMEs, the gender split is almost 50 / 50, which is a sign that the gender gap will close in the coming years for SMEs.
Twelve per cent of SMEs are online-only businesses. Another interesting trend among the emerging Millennial SMEs is that 23% of businesses are online-only. This generation gap between Millennials and Baby Boomer SMEs is striking – only 7% of Baby Boomer SMEs are online-only businesses.
What traits do SME owners need to be successful?
In a survey conducted by NAB, the following characteristics were found to be common amoung successful SMEs:
Prepared to work hard
Willing to fail and learn from failure
Genuinely passionate about their product or service
Good at dealing with difficult customers
With small business being such an important part of the Australian economic landscape, the team at Lloyds Brokers are committed to providing advice and strategy to SMEs looking to sell their business or raise capital for future growth.
With over 35 years experience within the Australian marketplace as business brokers, Lloyds can assist your business with its goals for growth. Talk with one of our consultants. We’d love to hear from you.