Western Australia's small business sector is generating a record $87.2 billion in annual economic activity, cementing its position as one of the State's biggest economic drivers — up almost 75 per cent since 2020.
New research commissioned by the Small Business Development Corporation (SBDC) shows small businesses account for 97.3 per cent of all businesses in Western Australia, employ more than 540,000 people and generate 35 per cent of all private sector jobs.
The research also highlights the breadth of small business across the economy, contributing $25.5 billion through mining, $10.8 billion through construction and $5.2 billion through agriculture, underscoring the sector's importance across every industry.
Small Business Commissioner Saj Abdoolakhan (ABDUL-Ah-Khan) said the findings reinforced the vital role small businesses play in Western Australia's continued prosperity.
"Small businesses are the engine room of Western Australia's economy. They create jobs, strengthen local communities and drive economic growth—and their contribution is growing every year."
"Five years ago, small businesses contributed around $50 billion to our economy. Today it's more than $87 billion. That growth reflects the ambition of hundreds of thousands of Western Australians who backed themselves, created jobs and invested in their communities."
“It also demonstrates how the robust economic environment and Government investment in economic diversification has paved the way for opportunities and growth, with 30,000 more small businesses added to the WA landscape over the last five years.
"Behind every small business is someone willing to take a risk, back an idea and create opportunities for others. Their impact reaches far beyond their own business."
Construction remains Western Australia's largest employing small business sector, generating $10.8 billion in annual value added. Health Care and Social Assistance has entered the State's top five employing sectors for small businesses, replacing Agriculture, Forestry and Fishing and Other Services.
Although no longer among the top five employing sectors, agriculture remains overwhelmingly a small business industry. More than 80 per cent of people working in agriculture are employed by a small business, with the sector contributing $5.2 billion annually to the WA economy.
Mining continues to generate the largest economic contribution from small businesses at $25.5 billion a year—almost 30 per cent of total small business economic output.
Mr Abdoolakhan said maintaining that momentum would require continued support for the sector.
"Our challenge now is to make Western Australia the easiest place in Australia to start, run and grow a small business. That means cutting unnecessary red tape, making government easier to deal with and giving business owners the support they need to succeed."
"Small businesses have always been central to Western Australia's success. Their role in shaping our economic future has never been more important."
"When small businesses succeed, Western Australia succeeds."
The SBDC has supported Western Australian small businesses for more than 40 years through free advisory services and low-cost workshops. The Small Business Economic Significance report was prepared by the Western Australian Treasury Corporation (WATC) using Australian Bureau of Statistics data.
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