Thousands of Australians made the switch from employee to business owner in the 2021 financial year, according to new research by Finder.
When lockdowns first started in March 2020, just 1 in 8 (13%) Aussie workers felt somewhat or very insecure in their job, according to Finder research.
In April 2020, that number jumped to 1 in 4 (24%), equivalent to 3.2 million workers.
This insecurity led to 365,480 new businesses trading in the 12 months to 30 June 2021, according to the latest data from the Australian Bureau of Statistics (ABS).
That’s the highest number of new business entries into the Australian economy since data collection began in 2013, and an increase of 8.6% new businesses compared to the previous year.
Kate Browne, personal finance expert at Finder, said COVID-19 has been the catalyst for many Aussies to quit their jobs in hopes of becoming their own bosses.
“The pandemic has created many opportunities for a new generation of entrepreneurs.
“Many dream of calling the shots and the restrictions over the last few years and work from home orders may have prompted some people to take the leap.”
Finder analysis revealed small businesses lead the way with a 15% rise in businesses employing 1–4 people, increasing by 92,495 companies.
Browne said would-be entrepreneurs should think about taking out business insurance.
“There are plenty of benefits to being self-employed from choosing your own hours to tax deductions, but there are also unique risks and responsibilities.
“The transition to becoming a business owner is not always an easy one especially in these uncertain times.
“So put some safeguards in place to make the leap successfully,” she said.
Finder has laid out the different types of business insurance you can take out, what’s mandatory, the costs and more.