Australia has around 2.7 million actively trading businesses, and almost all of them, 97.3%, are small businesses with fewer than 20 employees, according to the ABS. Two thirds of those have no employees at all, meaning one person running the whole show. Construction is the biggest industry by number of businesses, with over 460,000 businesses operating across the sector. Healthcare leads on employment, with more than 2 million workers. New South Wales has the most businesses of any state.

In short, small business is the default way Australia does business. This list covers the most common types, what they do, and how they typically operate.

What Is a Small Business in Australia?

The Australian Bureau of Statistics defines a small business as any business with fewer than 20 employees. That covers everything from a sole trader working alone to a local company with a team of 15.

The Australian Taxation Office uses a different measure: it considers businesses with less than $10 million in annual turnover to be small businesses. Both definitions are used depending on the context.

Most small businesses in Australia are run by one person. That 64% figure above, all non-employing businesses, are largely sole traders, freelancers, and owner-operators who do everything themselves.

Trades and Construction

Construction is the biggest single industry in Australia by number of businesses, with 462,939 businesses operating across the sector. Most of them are small, sole traders and small crews doing residential and commercial work.

• Builder / residential construction. New homes, extensions, and renovations. One of the largest subcategories in Australian small business.
• Electrician. Residential and commercial electrical installations, maintenance, and repairs. Licensed trade.
• Plumber. Plumbing installations, maintenance, and emergency call-outs for homes and businesses.
• Carpenter. Cabinetry, framing, decking, and timber work for builders, renovators, and homeowners.
• Painter and decorator. Interior and exterior painting for residential and commercial properties.
• Tiler. Bathroom, kitchen, floor, and outdoor tiling for new builds and renovations.
• Landscaper / gardener. Garden design, lawn maintenance, and outdoor property care.
• Handyman. General repairs and maintenance across a range of home and property tasks.

Food, Cafes, and Hospitality

Hospitality is one of the most visible small business sectors in Australia. From the local cafe to the food truck at the Saturday market, hospitality is everywhere.

• Cafe. Takeaway coffee and light meals. One of the most common small business types in Australian cities and suburbs.
• Restaurant. Sit-down dining ranging from local family restaurants to specialty cuisine operators.
• Takeaway and fast food. Fish and chip shops, pizza places, kebab shops, and similar quick-service food businesses.
• Food truck and mobile catering. Mobile food businesses operating at markets, events, and regular street locations.
• Bakery. Bread, pastries, and specialty baked goods, often as a standalone shop or as part of a market stall.
• Catering company. Private events, corporate functions, and weddings. Often run by one or two people with casual staff for events.
• Bar and pub. Local drinking venues. Many operate as small businesses, especially outside major cities.

Professional and Business Services

Professional services cover a wide range of knowledge and advice-based businesses. Many are sole traders or small consultancies.

• Accountant and bookkeeper. Tax returns, BAS lodgements, payroll, and financial record keeping for individuals and businesses.
• Lawyer / solicitor. Legal advice and services covering property, family, commercial, and employment law.
• Business consultant. Strategy, operations, and management advice for businesses at various stages of growth.
• Marketing consultant. Marketing strategy, digital campaigns, brand development, and growth planning.
• HR consultant. Recruitment, workplace policies, performance management, and employment relations advice.
• Financial planner. Superannuation, investment, and retirement planning advice for individuals and families.
• Mortgage broker. Home loan comparison and application assistance. One of the faster-growing small business sectors in Australia.

Health and Wellness

Healthcare and social assistance is the biggest industry in Australia by total employment. A large proportion of that is small, private practices and independent health professionals.

• General practice (GP). Many GPs operate through small medical practices rather than large hospital systems.
• Physiotherapist. Private practice physiotherapy for injury rehabilitation, sports recovery, and chronic pain.
• Psychologist and counsellor. Mental health support in private practice. Strong demand growth following the pandemic.
• Dentist. Most dental practices in Australia are privately owned small businesses.
• Optometrist. Eye health and prescription optical services, often through a small local practice.
• Personal trainer. One-on-one and group fitness sessions delivered at gyms, outdoors, and online.
• Nutritionist and dietitian. Dietary advice and health coaching for individuals, often operating as a sole trader.
• Massage therapist. Remedial and relaxation massage, typically from a rented clinic room or mobile service.

Retail

Australian retail is dominated by small businesses. Online retail has grown significantly, and many small retailers now sell through both physical and digital channels.

• Clothing and fashion boutique. Independent clothing stores in shopping strips, markets, and online.
• Specialty food and grocery. Delis, health food stores, butchers, fishmongers, and specialty importers.
• Hardware and homewares. Local hardware, gift, and homeware stores often competing against large chains through service and specialisation.
• Online retailer. Products sold through Shopify, Amazon, eBay, Etsy, or a direct website. One of the fastest-growing small business formats in Australia.
• Florist. Fresh flowers and arrangements for everyday customers, events, and corporate clients.
• Pharmacy. Independent pharmacies make up a significant portion of the sector alongside large chains.
• Bookshop. Independent bookstores remain a visible part of the Australian retail landscape in many cities and towns.

Technology and Digital Services

Tech businesses in Australia range from solo developers and consultants to small SaaS companies and digital agencies.

• Web developer and designer. Building and maintaining websites for small businesses, agencies, and direct clients.
• IT support and managed services. IT infrastructure, helpdesk support, and cybersecurity services for small and medium businesses.
• Software developer. Custom software, apps, and digital products for business clients.
• Digital marketing agency. SEO, paid advertising, content, and social media management for business clients.
• Data analyst. Business intelligence, reporting, and data services for companies without in-house capability.
• Cybersecurity consultant. Security assessments, policy development, and incident response for businesses of all sizes.

Creative and Freelance

Australia has a large and growing freelance economy. Creative professionals are among the most common sole traders in the country.

• Graphic designer. Brand identity, marketing materials, packaging, and digital design.
• Copywriter and content writer. Web content, blogs, emails, and advertising copy for business clients.
• Photographer. Weddings, commercial, real estate, and portrait photography.
• Videographer and video editor. Social media content, corporate video, events, and commercial production.
• Social media manager. Content creation, scheduling, and community management for business accounts.
• Interior designer. Residential and commercial interior fit-outs, renovations, and space planning.
• Architect. Many architects operate as small practices rather than large firms.

Cleaning and Maintenance

Cleaning is one of the most accessible small business sectors in Australia. Low startup costs and consistent demand make it a popular entry point into self-employment.

• Domestic cleaner. Home cleaning for regular and one-off residential clients.
• Commercial cleaner. Office, retail, and commercial premises cleaning on recurring contracts.
• Window cleaner. Residential and commercial window cleaning.
• Carpet and upholstery cleaner. Steam cleaning and specialist fabric care for homes and businesses.
• Pest control. Residential and commercial pest inspection and treatment.
• Pool cleaning and maintenance. Regular pool servicing for residential and strata clients. High demand in warmer states.

Related: Cleaning businesses at upcover

Education and Training

Private education and tutoring is a growing small business sector, driven by demand for specialist knowledge and skills development.

• Private tutor. One-on-one and small group tutoring in school subjects, language learning, and exam preparation.
• Corporate trainer. Workplace training and professional development delivered under contract to businesses.
• Driving instructor. Learner driver lessons and advanced driver training.
• Music teacher. Individual lessons in piano, guitar, voice, and other instruments.
• Art and craft teacher. Workshops and classes for adults and children in painting, pottery, craft, and similar.
• Childcare and early education. Family day care, in-home childcare, and small private early learning centres.

Automotive and Transport

Automotive & Transport is a vital business sector, driven by demand for specialist knowledge and skills development.

• Mechanic. Log book servicing, repairs, and diagnostics for passenger and commercial vehicles.
• Panel beater. Vehicle accident repairs and body work. Often run as a small workshop.
• Tow truck operator. Vehicle recovery and towing. Often sole traders or small operations.
• Courier and delivery. Same-day delivery, freight, and parcel services. Many operate as independent contractors.
• Taxi and rideshare driver. Self-employed rideshare and taxi operators are a significant part of the transport small business sector.

About upcover

upcover is a digital-first insurance broker helping Australian businesses arrange the right liability insurance instantly online. upcover arranges public and products liability insurance, professional indemnity insurance, management liability insurance, and cyber and privacy liability insurance for businesses across 4,000+ occupations in Australia.

• 70,000+ businesses covered across Australia.
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upcover is a Corporate Authorised Representative (CAR 1299211) of Experience Insurance Services Pty Ltd ABN 41 657 596 506, AFSL 539078.

Frequently Asked Questions

What are the most common types of small businesses in Australia?

The most common small business types in Australia are in construction and trades, food and hospitality, professional services, health and wellness, retail, and technology. Construction is the biggest single industry by number of businesses, with 462,939 businesses. Healthcare and social assistance is the biggest by employment, with over 2 million workers.

How many small businesses are there in Australia?

As of June 2025, there were 2,729,648 actively trading businesses in Australia, according to the ABS. 97.3% of them are small businesses with fewer than 20 employees. 64% have no employees at all, meaning they are run by a single person.

What counts as a small business in Australia?

The Australian Bureau of Statistics defines a small business as one with fewer than 20 employees. The Australian Taxation Office uses turnover instead, considering businesses with less than $10 million in annual revenue as small businesses. Both definitions are used in different contexts.

What is the most common business structure for small businesses in Australia?

Sole trader is the most common structure. Most of the 64% of non-employing businesses in Australia operate as sole traders. It is the simplest structure to set up and suits most service and trades businesses at the start.

Which industry has the most small businesses in Australia?

Construction has the most small businesses of any industry in Australia, with 462,939 businesses according to ABS data. Trades businesses including builders, electricians, plumbers, and carpenters make up a large portion of this number.

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_{The information in this article is general in nature and provided for informational purposes only. Statistics are sourced from the Australian Bureau of Statistics (ABS Counts of Australian Businesses, June 2025) and the Australian Small Business and Family Enterprise Ombudsman (ASBFEO, August 2025). Figures are subject to change as new data is released. upcover Pty Ltd ABN 17 628 197 437 is a Corporate Authorised Representative (CAR 1299211) of Experience Insurance Services Pty Ltd ABN 41 657 596 506, AFSL 539078.}