97% of Australia’s businesses are small businesses
MYOB has analysed millions of anonymous data points, aggregated for the whole small business sector in the latest MYOB Business Monitor: SME Performance Indicator.
This edition is a lead indicator of the performance of small businesses (1-19 employees) relative to the Australian economy.
Economic insights for the small businesses sector
Gross value added (GVA), is a measure of the value of goods and services produced in an area, industry or sector of an economy. The SME Performance Indicator is an aggregation of GVA for the small business sector.
Small businesses are susceptible to abrupt changes in the economy. Analysis of this sector, including breakdowns of key industries and states, provides insight into our economic future.
Forecasting economic shifts
The SME Performance Score is derived from the difference between the MYOB SME Performance Indicator and the Australian GDP (+5/-5). This demonstrates small business performance compared to the overall Australian economy.
In May 2024, the SME Performance score was -2.0, relatively unchanged from April, after being in negative since late 2023. The small business sector may not make a positive contribution to Australian GDP growth in the next quarter.
Economic performance across states and industries
The trajectory for total small business production in each major state is similar, however over the last three years small businesses in WA have out-performed the other major states.
Small businesses in B2B Information, Media and Telecommunications (IMT) services have seen the most improvement. The Retail sector has seen minimal growth since end of 2021, largely due to ongoing cost of living pressure.
Health sector performance temporarily spiked during COVID-19, but has since tracked in line with population growth. The Agricultural industry has trended upward as a result of record-high production across crops and livestock, and expectations of near-record production for FY2024-25 should see continued growth.
COVID-19 had a disruptive impact on the Accommodation and Hospitality industries. The recent downturn largely reflects the impact of the ongoing cost of living pressures on household spending. The Construction sector has seen a recent decline, reflecting the impact of cost pressures on builders and related business closures.
