Contribution of Small Business to the Australian Economy

Small Businesses contribute
significantly to the fabric of Australian
society in many ways not the least
being economic as well as offering
opportunity and competition therefore
evaluate the proposition that Small
Business contributes significantly to
the Australian economy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
ESSAY.............................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Small businesses are considered as the backbone of economy as well as key driving force
for the development of society as well. Thus the extent up to which small businesses contribute
to the Australian economy is significant (Altman, 2018). As per Australian economy small
businesses are defined as the organisations which have less than $2 million per annum turnover
with active GST role and which have Australian Business Number (ABN). Thought these
organisations have less than 20 employees but they impose great impact on social as well as
economic development. The essay will provide an argumentative description of proposition
which small business have on Australian economy.
ESSAY
According to Ayandibu and Houghton, (2017) small business have a small proportion of
contribution to total export value but it has considerable contribution in total industrial outputs.
These organisations have dynamic environment which allows entrepreneurs so that they can
pursue their dreams without any barriers from bureaucratic structures or strictures of large
organizations. In the same context Pandya and Sisombat, (2017) stated that the economic
contribution of these ventures can be evaluated by the statistical figures, however some of these
contributions are not measured by statistics. For instance the growing innovations and successful
entrepreneurship find its way through entrepreneurship and establishment of small sized
organisations Thus citizens of Australia can encapsulate nimbleness and agility only by initiating
and supporting such small start ups of ventures.
It has been observed that business size is also assumed as determinant of longevity of
business. This sector is highly volatile and quick resilience of small business leads to exploration
of new opportunities at a greater pace. As per the statistics of 2019 only 0.2% of Australian
businesses are classified as large size businesses while majority of 97.7% businesses in Australia
employs only less than 19 people and thus they are classified as small business. This statistics
clearly depicts that despite low contribution to economy development of Australian society and
economy cannot be promoted without encouragement and support to these businesses.