4 factors driving the entrepreneurial spirit in Australia

Setting up your own business is becoming more popular in Australia.

Many people dream of owning their own business, but taking the plunge is a big step and you may be understandably nervous before beginning your entrepreneurial journey.

But now may be a good time to discuss your options with a business start-up expert in Geelong, as there are a number of potentially encouraging factors affecting markets at the moment.

By 2020, millennials will comprise roughly 42 per cent of the Australian workforce.

Let's look at some of these drivers and how they could help support new business owners.

1. Profit expectations on the rise

Recent Dun & Bradstreet figures revealed optimism is high among organisations regarding their profit levels. In fact, the company's profit expectations index has jumped more than 110 per cent since the June 2016 quarter.

Capital investment intentions are also on the increase, suggesting businesses are confident enough to fund growth plans as we head deeper into 2017.

2. Young people are more entrepreneurial

By 2020, millennials will comprise roughly 42 per cent of the Australian workforce, according to McCrindle Research. As baby boomers retire, it is likely that we'll see more young people wanting to start their own business.

Recent NAB statistics support this prediction, with 50 per cent of young Australians hoping to own a company, compared with one-third of the wider population.

3. Digital disruption boosting start-ups

New businesses have often struggled to compete with larger, more established organisations, but technology is helping to overturn this historic imbalance.

Start-ups now have access to a range of technologies that can help them become faster, more cost-efficient and accessible to wider audiences.

Fintech, cloud computing and data analytics were three examples of key technologies in a recent KPMG report that are digitally disrupting the status quo.

Setting up a business and WMC Accounting. Cloud computing and other innovative technologies are helping smaller businesses to compete.

4. Federal budget tax breaks

The Australian government announced a number of measures in the 2016-17 federal budget designed to help start-ups and SMEs.

Small businesses will see the corporate tax rate drop from 28.5 to 27.5 per cent in the 2016-17 income year, with the threshold increased to $10 million of annual turnover.

Starting your business

These are just four factors currently influencing more people to pursue their passion for entrepreneurialism, but building an effective strategy for starting your business requires significant planning.

WMC Accounting has extensive start-up and development services to help you take the first steps towards owning a business. Click here to get in touch today.

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