In the face of ongoing cost-of-living pressures, Australian small business owners have a unique opportunity to contribute to community stability through job creation. Despite this, CPA Australia’s 2024 Asia-Pacific Small Business Survey reports that only 9% of Australian SMEs created new positions last year, compared to 33% of businesses in the broader Asia-Pacific region.
Given that Australian small businesses employ over 5 million people (according to 2024 data from COSBOA – the Council of Small Business Organisations Australia), even modest employment growth across the sector could have a significant impact. However, factors such as inflationary cost increases and restricted access to funding continue to challenge hiring capacity for many business owners.
To help your business contribute to employment growth while maintaining financial sustainability, consider the following strategies:
- Expand Strategically and Prioritise Local Recruitment: If your business can grow, consider expanding operations in a way that supports job creation—such as increasing your production capacity, launching a new service line, or opening an additional location. Where possible, recruit from within your local area to support community employment outcomes.
- Source Locally to Strengthen Supply Chains: Where commercially viable, procure goods and services from nearby suppliers and service providers. This approach supports indirect employment by stimulating demand across local industries such as manufacturing, transport, and agriculture. Additionally, local sourcing can help build more robust and agile supply chains.
- Invest in Training Through Apprenticeships and Traineeships: Bringing on apprentices or trainees is an effective way to develop skilled staff while contributing to local workforce development. Government incentives may be available to offset the cost of training and supervision, making this a practical solution for many small businesses.
Explore current support for hiring apprentices. - Engage With Community-Focused Projects: Consider participating in or supporting community programs that deliver direct or indirect employment outcomes. This could involve sponsoring local events, partnering with not-for-profits, or offering project-based work opportunities. These contributions can strengthen your business’s community profile and generate goodwill.
- Utilise Local Professional Services: Engaging local accountants, consultants, IT providers, tradespeople and legal firms ensures your business spend supports employment within the surrounding region. This not only aids the broader local economy but can also result in more responsive and personalised service for your business.
While external pressures remain, small businesses have an important part to play in Australia’s economic recovery and regional employment growth. Through thoughtful planning and a local-first approach, SMEs can create meaningful employment opportunities that benefit both their business and the broader community.
