In brief: World Micro, Small and Medium-Sized Enterprises (MSME) Day recognises the contribution small businesses make to Australia's economy. According to ASBFEO, small businesses make up 97% of Australian businesses, employed around 5.2 million people or 39% of the private sector workforce in 2023-24, added over $590 billion in value (nearly one-third of GDP) and employ 42% of Australia's apprentices and trainees. MSMEs need support to stay nimble and entrepreneurial so they can keep providing jobs and career opportunities.
Today, we proudly celebrate World Micro, Small, and Medium-Sized Enterprises (MSME) Day, recognising the extraordinary contributions of small businesses to our nation. In Australia, MSMEs are not just an economic asset; they are a powerhouse of jobs, innovation and employment, driving the country's economic engine.
Update (November 2026): World MSME Day falls on 27 June each year. It was established by United Nations General Assembly resolution 71/279 in April 2017 to recognise that MSMEs account for about 90% of businesses, 60 to 70% of employment and half of GDP worldwide (United Nations, n.d.; United Nations General Assembly, 2017). The Australian figures below have been updated to the latest ASBFEO data.
Small business by the numbers
Small businesses with fewer than 20 employees numbered 2,741,087 at 30 June 2026, 97% of all actively trading businesses in Australia (ASBFEO, 2026; Australian Bureau of Statistics, 2026). In 2023-24 they employed around 5.2 million people, 39% of the private sector workforce, showcasing their pivotal role in providing employment opportunities across the country (ASBFEO, 2025a). These enterprises are instrumental in sustaining local economies and communities, offering diverse job opportunities and fostering entrepreneurial spirit. They support large business and government services.
A third of the economy
The economic significance of small businesses is immense. In 2023-24, the sector added over $590 billion in value to the Australian economy, nearly one-third of the nation’s GDP (ASBFEO, 2025b), up from $506 billion in 2021-22 (ASBFEO, 2023). This substantial contribution underscores their importance in maintaining economic stability and growth, particularly during challenging times.
Training the next generation
Furthermore, small businesses are integral in training and development, employing 42% of all apprentices and trainees in training in Australia at 31 December 2023, although that number fell 8% on the previous year (ASBFEO, 2024). This commitment to nurturing talent helps sustain the supply of skilled workers essential for the country’s long-term economic health.
Supporting MSMEs to stay nimble
MSMEs must be supported to be nimble and entrepreneurial so they can continue as the powerhouse of employment for the economy. By fostering an environment that encourages innovation and flexibility, we can ensure that these vital businesses invest, thrive and continue to provide essential employment and career opportunities for millions of Australians.
Linq HR is a small enterprise too. Linq HR provides fractional employee relations support to Australian employers and operates Workforce Directory, Australia’s HR services marketplace. Ph 1300 234 566.
Further reading:Benefits and risks of not using professional HR advice for SMEs and Ways to outsource HR functions and their benefits.
References
Australian Bureau of Statistics (2026) Counts of Australian Businesses, including Entries and Exits, July 2022 – June 2026. 18 August. Available at: https://www.abs.gov.au/statistics/economy/business-indicators/counts-australian-businesses-including-entries-and-exits/jul2022-jun2026 (Accessed: 6 November 2026).
Australian Small Business and Family Enterprise Ombudsman (2023) Small business worth more than half a trillion dollars to the Australian economy. Media release, 26 June. Canberra: ASBFEO. Available at: https://www.asbfeo.gov.au/media-centre/media-releases/small-business-worth-more-half-trillion-dollars-australian-economy (Accessed: 6 November 2026).
Australian Small Business and Family Enterprise Ombudsman (2024) Apprentices and trainees employed by small business. Factsheet, September. Available at: https://asbfeo.gov.au/sites/default/files/2024-10/Apprentices%20and%20Trainees%20Employed%20by%20Small%20Business_September%202024.pdf (Accessed: 6 November 2026).
Australian Small Business and Family Enterprise Ombudsman (2025a) Contribution to Australian employment. Factsheet, July. Available at: https://asbfeo.gov.au/sites/default/files/2025-11/Contribution%20to%20Australian%20Employment.pdf (Accessed: 6 November 2026).
Australian Small Business and Family Enterprise Ombudsman (2025b) Contribution to Australian GDP. Factsheet, July. Available at: https://www.asbfeo.gov.au/sites/default/files/2025-11/Contribution%20to%20Australian%20GDP_0.pdf (Accessed: 6 November 2026).
Australian Small Business and Family Enterprise Ombudsman (2026) Small business population and key issues. Small Business Data Portal. Available at: https://www.asbfeo.gov.au/small-business-data-portal/small-business-population-and-key-issues (Accessed: 6 November 2026).
United Nations (n.d.) Micro-, Small and Medium-sized Enterprises Day, 27 June. Available at: https://www.un.org/en/observances/micro-small-medium-businesses-day (Accessed: 6 November 2026).
United Nations General Assembly (2017) Micro-, Small and Medium-sized Enterprises Day. Resolution A/RES/71/279, adopted 6 April 2017. Available at: https://digitallibrary.un.org/record/1288909 (Accessed: 6 November 2026).
