Aussie SME owners value lifestyle over international growth, Xero reveals

The research also found that 83 per cent considered Australia a place to start a business, which was reinforced by data from the Australian Bureau of Statistics (ABS) that showed almost 300,000 people decided to start something of their own in the 12 months to June 2024.

However, it was noted that “the entrepreneurial appetite for global growth is lacking” and that 43 per cent of people were more motivated by being their own boss, 31 per cent wanted to prioritise their lifestyle and 29 per cent wanted to earn more money.

Forty-seven per cent of small business owners noted a level of worry towards the current economic environment and global challenges such as US tariffs, volatility and associated risks, as well as exchange rate fluctuations – all of which could be attributed to the barrier of international growth.

Angad Soin, Xero managing director ANZ and global chief strategy officer, said the research suggested that to unlock the nation’s full entrepreneurial potential, “Australia must create the right conditions to foster ambition and support scaling for small business”.

“We know Australians value their lifestyle, so it makes sense that so many of us want to be our own boss; to chase that flexibility and freedom. But it raises the question: does Australia have the right conditions to support small businesses in recognising their full potential?” he said.

“While we can’t control global economic tides, we can control how we foster a resilient and ambitious business culture. For business owners, it starts with giving them time back to focus on defining and achieving their personal definition of success.”

“For policymakers, there is a critical conversation to be had at the Economic Reform Roundtable to design policy that supports our diverse small business sector to help them thrive. With small businesses contributing to half of our GDP and employing one in every four Australians, it is in everyone’s interest to have a thriving small business sector.”

The report also cited that while SME owners were “clear on their version of success”, many overlooked the importance of a long-term plan, 49 per cent having admitted they didn’t have a long-term succession plan in place.

Soin said it was increasingly important for small business owners to have a solidified ‘end game’ in mind.

“Australia has an incredible entrepreneurial spirit, and the opportunity for small business owners to carve out their own path has never been greater,” Soin said.

“But to truly make the most of that potential, the first step is getting clear on what success looks like to you. From there, the right digital tools or a trusted advisor can help turn that vision into something real and achievable.”

“Australia’s small business community is more diverse than ever, reflecting the different ways small business owners measure their success. For many, it’s no longer about fitting into a traditional mould, but about creating something that works for you.”