NRMA delves into rapidly growing microbusiness sector

NRMA delves into rapidly growing microbusiness sector | Insurance Business Australia

Insurance News

NRMA delves into rapidly growing microbusiness sector

Report identified factors to help sector grow further

Insurance News

By
Roxanne Libatique

IAG-backed NRMA Insurance (NRMA) has teamed up with McKell Institute to highlight microbusinesses’ contribution to the Australian economy and communities.

The report delved into changes in Australia’s microbusiness sector, how the COVID-19 pandemic affected it, and its economic contribution compared to small businesses.

It found that microbusinesses, which commonly employ up to four people, account for 89% of all businesses in Australia.

“There are incredible opportunities for this sector, not only in economic contribution to the nation but also the positive impacts many of these businesses have within their local communities,” said NRMA CEO Julie Batch.

Challenges in the Australian microbusiness sector

Despite growing rapidly, the Australian microbusiness sector continues to face challenges.

The report revealed that microbusiness owners face:

limited access to resources and specialist knowledge;
lack of formal definition of microbusiness;
impacts of extreme weather; and
cyber risks.

“NRMA Insurance supports more than 70,000 small business owners across the country, and we are dedicated to helping our customers overcome some of these challenges by providing a range of insurance options and a simplified digital experience when taking out a policy, as well as access to our specialist consultants,” Batch said.

The report said the following could help the Australian microbusiness sector grow further:

establishing a formal definition of microbusinesses;
addressing structural barriers that limit female microbusiness owners’ access to finance;
a one-stop shop resource for microbusiness support and resources from governments;
education courses to help microbusinesses grow; and
government support that deems microbusiness a separate category from small business.