NRMA Insurance has teamed with research organisation, the McKell Institute, to help shape the future of the growing microbusiness sector. 

Commissioned by the insurer, the Micro but Mighty: Magnifying Microbusiness in Australia report found that microbusinesses account for up to 89% of all businesses in the country and is the fastest growing sector of the small business community. 

The report recommends that a formal definition of microbusiness in Australia be established, a one-stop-shop resource for microbusiness support and resources across different levels of government be created and that, on a government level, microbusinesses be treated as a separate category to small business. 

The report also suggests that structural barriers limiting access to finance for women who own microbusinesses be removed and more education for microbusinesses, to allow them to grow, be available. 

According to the report, the microbusiness sector grew by 14% over the past four years to 2.28 million businesses, employing 2.9 million Australians. 

NRMA Insurance CEO Julie Batch says the report underscores the value of microbusinesses to the nation which start with a “passionate owner, a fantastic idea and thrive on community support”. 

“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.” 

The report says just over a third were run by women (35%) and the average number of employees is four. 

Ms Batch says microbusinesses are particularly vulnerable to the severity and frequency of weather events. 

“We know there is much more work that needs to be done. Despite the significant contribution and value of microbusiness, the barriers to growth in this sector are not well understood and could benefit through better targeted public policy measures.” 

McKell Institute CEO Adam Cavanough says too often when policy makers announce policy measures to support the sector they think of tradies and deductions for new utes, tools and apprentices. 

“These policies are rooted in a view of microbusinesses centred on the tradie. Yet the microbusiness sector is the fastest growing business sector in Australia, and now employs 2.9 million people. This growth has largely been digital, and it has changed the demographics of these small business owners.” 

NRMA Insurance has been a longtime supporter of digital networking platform Mums & Co, and recently increased its investment to wholly acquire the business. 

“The acquisition of Mums & Co was a natural progression for our business, and we are thrilled to continue to support the platform that helps women and their supporters scale their business. We also help business owners manage their risks by offering insurance options,” Ms Batch said.