NRMA Insurance and the McKell Institute have teamed up to present a ground-breaking report shedding light on the pivotal role of micro-businesses in the Australian economy.
The report not only underscores the significant contribution omicro businesses but also emphasises the growing influence of women entrepreneurs in this dynamic sector.
The report, titled “Micro but Mighty: Magnifying Microbusiness in Australia,” commissioned by NRMA Insurance, reveals that microbusinesses form an astounding 89 per cent of all businesses in the country. This sector, known for employing up to four people, has become the fastest-growing within the small business community.
Over the past four years, microbusinesses have experienced an impressive 14 per cent increase, catapulting their numbers to 2.28 million, and providing employment opportunities to a staggering 2.9 million Australians. The report attributes this remarkable growth to various factors, including the impact of the COVID pandemic.
Women entrepreneurs on the rise
One of the report’s crucial findings is the significant presence of women in the microbusiness sector. Contrary to stereotypes, a growing number of women are actively starting their businesses, with the latest figures showing that 35 per cent of Australian businesses are owned by women. The report showcases inspiring case studies of women microbusiness owners provided by Mums & Co., further highlighting their substantial influence on this burgeoning segment.
The report identifies several unique challenges faced by microbusiness owners, such as limited access to resources and specialized knowledge, the absence of a formal definition for microbusinesses, and the ongoing threats of extreme weather and cybersecurity risks for those operating online businesses.
NRMA Insurance, with its commitment to supporting small business owners, is actively working to address these challenges. With over 70,000 small business owners already receiving support, NRMA Insurance provides a range of insurance options and a simplified digital experience to assist micro businesses in navigating these obstacles.
Beyond insurance, NRMA Insurance is dedicated to serving communities and is a proud supporter of Mums & Co, a membership subscription and community that empowers women in business. To strengthen their commitment, IAG, the parent company of NRMA Insurance, recently increased its investment to wholly acquire Mums & Co, further bolstering their support for women entrepreneurs.
Government collaboration and key recommendations
Acknowledging the rising number of women entrepreneurs in the microbusiness sector, the NSW Minister for Women, the Hon. Jodie Harrison, expressed commitment to support more women in their entrepreneurial journeys.
NRMA Insurance looks forward to working closely with governments at all levels to address the key challenges and opportunities highlighted in the report. Among the report’s key recommendations are establishing a formal definition for microbusiness in Australia, addressing structural barriers limiting access to finance for women business owners, creating a comprehensive resource hub for microbusiness support across various government levels, partnering with the financial sector to offer education courses for microbusiness growth, and providing dedicated government support that recognizes microbusinesses as a distinct category.
The NRMA Insurance and McKell Institute report celebrates the vital role of microbusinesses in the Australian economy and communities while also spotlighting the rising influence of women entrepreneurs in this thriving sector. With a focus on empowering microbusiness owners, especially women, and collaborating with governments, NRMA Insurance aims to drive the continued growth and success of microbusinesses throughout Australia.
Here’s the full report: Micro but Mighty: NRMA Insurance report highlights the impact of the fast-growing microbusiness sector | IAG Limited
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