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The ‘beating heart’ of enterprise: Why sole traders need better recognition

As Australia’s sole traders continue to grow, quietly shaping the economy, small-business advocates are urging the nation to recognise them for what they truly are – not just business operators, but the beating heart of enterprise driving communities and economic growth nationwide.

February 05, 2026 By Grace Robbie
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Often overlooked and under-recognised, Australia’s sole traders – the enterprising individuals driving communities from the bush to the suburbs – are finally being acknowledged as far more numerous and vibrant than most policy settings realise.

New data from the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), drawing on customised integrated administrative data from the Australian Bureau of Statistics’ (ABS) DataLab, reveals that nearly 1.7 million Australians operated as sole traders in 2021–22.

 
 

In an era of increasingly fluid working lives, where Australians balance employment, running a business, and caring responsibilities, the ASBFEO has emphasised that understanding sole traders has never been more crucial.

Despite their growing economic and social impact, the independent statutory agency revealed that sole traders remain largely invisible in program design, regulatory frameworks, and broader economic debates.

Describing sole traders as the “beating heart” of enterprise in Australia, ASBFEO Ombudsman Bruce Billson stressed the need for the nation to recognise them more fully through policies that genuinely reflect their needs.

“Sole traders are not just economic participants – they are the beating heart of enterprise in our country. They’re innovators, problem-solvers and community contributors,” Billson said.

“If we genuinely believe in a fair go, we need policies that recognise the real lives, pressures and possibilities of this dynamic group.”

Billson went further, urging that sole traders be seen not merely as “economic actors”, but as the “unsung heroes” driving the Australian economy and be given the support their vital contributions deserve.

“Sole traders are the unsung heroes of our economy. They are not just economic actors – they are community builders, innovators, and problem-solvers,” Billson said.

“If we truly believe in a fair go, it’s time to give sole traders the recognition and support they deserve.”

Yet despite their vital contributions, sole traders continue to face pressures often unseen in larger businesses.

The ASBFEO revealed that in 2025, nearly half of all disputes brought by sole traders in transport, postal, and warehousing were payment-related, exposing their ongoing vulnerability within supply chains dominated by larger players.

Reflecting on these findings and the current market, Billson called for a policy rethink to better support this vital group, emphasising the need to include “improve visibility”, implement “fairer payment practices”, and develop “inclusive programs”.

He added: “Even a sharper focus on sole traders when thinking about tax simplification and regulatory streamlining would deliver big dividends”.

Billson stressed that if change does not occur and sole traders continue to be overlooked, it will affect the businesses that make up the vast majority of Australia’s economy – the very enterprises keeping local communities thriving.

“Sole traders make up the vast majority of Australia’s businesses – the everyday enterprisers keeping local economies ticking. When such a large and dynamic part of our economy is overlooked, policy simply can’t keep pace with real working lives,” he said.

“If Australia is truly the land of opportunity and entrepreneurship, we must ensure sole traders – in all their variety – get the recognition and support they deserve.”