Small business ownership among under 30s at only 8 per cent, Wagga could be perfect place for youth to get started

Australia has some of the oldest business ownership in the Asia-Pacific, with the percentage of small business ownership among under 30s at only 8 per cent.

Australian Small Business and Family Enterprise Ombudsman Bruce Billson said the average age of business owners is getting older.

"Nearly half of all small business owners are over the age of 50. In fact, the average age of a small business owner is now 50, it was 45 back in 2006," he said.

"We need to replenish the next generation of entrepreneurs starting and running a business or being self-employed and to do that we need to make sure that it's an attractive pathway for people's livelihoods."

IN OTHER NEWS:

The cost of entry into a business venture can be a sticking point for young people, many of whom do not own a house or have capital built up, and who already have secure jobs may not see the risk to reward benefit of going it alone, according to CPA Australia Senior Manager Business and Investment Policy Gavan Ord.

But the regions may be bucking the trend and could provide the perfect place for young people to get into a small business.

"The advantage for a regional area is that some of those start-up costs are much lower," he said.

Wagga in particular has a host of enterprising young business people paying the cost to be the boss.

Mia Suleman, 20, is getting ready to open her first venture with a bricks-and-mortar smoothie, tea and juice bar in the Australian Arcade on Fitzmaurice Street.

Mia moved to Wagga in February to start an oral health degree at CSU and with her partner decided to open AcTeaV8 NUTRITION after seeing a gap in the market.

"The business is really delicious energy teas, they've got no sugar, they are low in calories, but they still have natural caffeine in it ... so it's like a substitute for getting a coffee," she said.

"The reason we wanted to bring this to Wagga is ... there's nothing like this in Wagga for one, and two, if we had this in our local area we'd love it."

Opening her own business at a young age, in a new town, while juggling uni, came with some fears, and there have been challenges.

Her opening has been delayed three weeks due to trade issues, but her overall costs have been low as she relied on savings and second-hand equipment to get the business going and had some family help with renovations - ultimately the risk seemed small.

"We moved from the Sydney area, it's slightly less expensive to start something, but also if we didn't try something, we'd never know," she said.

"It is hard being young ... you do have real estate that doesn't take you seriously ... but if you're passionate about something ... it will work."

Springvale brothers Luke, 15, and Scott, 19, Vidler are looking to take the clothing game by the scruff of the neck with their new streetwear brand, Hektic Threads.

The pair have always been artistic, Scott is a sign writer by trade and both are graffiti artists, but they've now swapped the paint can and the wall for a needle and handmade shirts and hoodies.

"We always used to go to Melbourne, our nan used to live in Geelong so we always used to go to the [lanes]. There was a thing called the Powerhouse Museum ... just full of graff," Scott said of his early inspiration.

They've launched their own website, market heavily on social media and design and make everything themselves at their family home with low overheads. They have already got a waiting list for their one-off clothing lines. "I've got all the gear [from work], so really all we're paying for is the material, so then it's just our time," Scott said.

The pair hope it can eventually translate to a career.

"We want it online, but build it until we're happy and we can do it as a full-time job," Luke said.

A recent CPA survey identified that Australian small businesses have a much lower level of digital capability than their Asia-Pacific counterparts.

A third of small businesses don't use social media, compared to the survey average of 15.4 per cent.

For the young Wagga entrepreneurs, it's crucial.

Hot sauce maker Jacob Chapple, 30, launched his business in recent weeks after getting into hot sauce as a hobby during the pandemic and his company has shot through the roof with the help of TikTok and YouTube.

"I sent a bottle to some YouTubers and they did a video on it. Ever since then my business has just blown up to something I never could have expected, to the point where I've started a waiting list," he said.

The CPA survey showed that Australia has the highest percentage of small business owners aged 50-plus in the Asia-Pacific - ahead of the likes of New Zealand and China.

The country placed ninth out of eleven Asia-Pacific nations for owners under 40, which Mr Ord said is a huge problem.

"We've done an annual survey of small businesses for the last 14 years and it clearly shows that younger business owners, so those under 40, are much more likely to be operating businesses that are growing, much more likely to be operating businesses that are creating jobs, are innovating, that are exporting, that are using technology," he said.

"That's why we think it's important to encourage younger people to start businesses because it's good for the economy, good for jobs and also good for the small business owners themselves because it is the pathway to financial security."

The CPA is calling on the government to look into the barriers stopping young people from owning small businesses and find ways to fix it. "We think because of the economic and social benefits that come from more young people starting businesses, we think there should be an inquiry to delve more deeply into the barriers as to why young people are not in small businesses," Mr Ord said.

Mia Suleman said while it might seem a big ask, she encouraged any young person with a dream to take the plunge. "I would say just go for it. If you've planned and you're passionate, go with it ... it will work out," she said.

"It doesn't harm to try."

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: