Small businesses in NSW are evolving to become more digital, highly specialised, and connected far beyond their local postcodes, a new report reveals.
Launched today at a Business Sydney event to mark the start of NSW Small Business Month this new research from the NSW Small Business Commission highlights how local operators are innovating to drive economic activity and community resilience.
Small businesses employ close to 1.7 million people-which is roughly 40 per cent of the total NSW workforce.
Key findings from the Commission’s NSW Small Business: A Story of Diversity and Dynamism Insights Paper show:
- The Rise of Micro-Businesses: 63 per cent of NSW small businesses now operate with fewer than four employees, growing at double the rate of all businesses overall.
- Expanding Horizons: 57 per cent of small businesses now serve customers beyond their local area-23 per cent across NSW, 21 per cent nationally, and 3 per cent internationally.
- Rapid AI Adoption: 47 per cent of small businesses use AI tools to boost productivity, including 40 per cent of tradies, retailers, and hospitality venues.
- Driven by Purpose: Nearly half (49 per cent) of owners cite independence as their primary driver, while regional owners are three times more likely than Sydney counterparts to value their local community role.
Throughout October, the contribution of small businesses will be celebrated with a state-wide program of free and low-cost events, workshops, and networking opportunities online and in regional and metro areas. The events cover a range of topics, from sales and cash flow to technology adoption and cyber security. Find the full list at nsw.gov.au/nsw-small-business-month.
During Small Business Month, the Service NSW Business Bureau is offering additional tailored support, including face-to-face appointments across more than 30 Service NSW Centres, and specialised programs for First Nations, multicultural, and female founders.
NSW business owners can also access up to four hours of free advice from independent business advisors under the new Small Business Advisory program, which has surpassed 1,200 bookings since it launched less than a month ago.
To find out more and to book an appointment, visit service.nsw.gov.au/business/small-business-appointments-at-service-nsw-centres or call 13 77 88.
A copy of the NSW Small Business: A Story of Diversity and Dynamism can be found at www.smallbusiness.nsw.gov.au/small-business-insights-paper
Minister for Customer Service and Digital Government Jihad Dib said:
“Small Business Month is a great opportunity for business owners right across NSW to connect, collaborate and access the tools they need to take their business to the next level.
“To help owners save time, make confident decisions and access in-person support, the Service NSW Business Bureau provides help for businesses to succeed.
“Through the new Small Business Advisory program, businesses can also access specialised advice from independent advisors alongside practical tools and resources to support their business journey.”
Minister for Small Business Janelle Saffin said:
“Small businesses are the heart of our communities and the powerhouse of local economies in NSW. Business conditions are constantly evolving, and across the state, our business owners are adapting and diversifying by embracing digital tools like AI, building vibrant micro-enterprises, and taking local expertise to national and global markets.
“As we launch NSW Small Business Month today, we reaffirm our ongoing commitment to backing our 893,000 small business owners every day of the year.
“I encourage everyone across NSW to get behind their local small businesses this October by shopping locally, attending an event, or celebrating the hard-working people who make our communities thrive.”
NSW Small Business Commissioner Kalina Koloff said:
“Behind every statistic is a person who has taken a risk, reinvented themselves or found a new way to contribute.
“What this research shows is that small business ownership is often much more than an economic activity. It’s a pathway to innovation, independence, purpose and participation in the community.
“The diversity of experiences, motivations and business models across NSW is what makes the sector such a powerful contributor to the state’s economy.”
Business NSW Chief Executive Daniel Hunter said:
“Small and medium businesses are the innovators who make our communities tick. They grow our collective prosperity by employing, investing and contributing billions in tax revenue.
“Their rapid adoption of AI is a good demonstration of this; it’s critical NSW creates the best operating environment so they can stay ahead of the game.”
