The Quiet Army: How Australia's Sole Traders Are Redefining Modern Work
Australia's economic story often focuses on large corporations and high-profile startups. Yet, beneath this spotlight lies a quiet army of sole traders – the smallest of small businesses – who are proving indispensable to national prosperity and community wellbeing.
A Diverse and Dynamic Workforce
Recent analysis from the Australian Small Business and Family Enterprise Ombudsman reveals how these enterprising individuals are shaping their working lives with remarkable flexibility. They blend employment, enterprise, caring roles, and community contributions in ways that reflect the real rhythm of modern Australia.
Sole trading has evolved from being a sideline activity to becoming one of the most common ways Australians participate in business. This includes skilled professional services, small retail operations, creative work, trade-based activities, transport and logistics, care roles, and community-based enterprises.
Women now represent 40 percent of sole traders, with female participation growing at more than twice the rate of men over the past five years. Many balance business with caring responsibilities – more than 193,000 sole traders provided unpaid care in 2021-22, most of them women.
Culturally and linguistically diverse entrepreneurs account for 37 percent of sole traders, with particularly strong representation in transport and warehousing. This sector saw 35 percent growth in CALD participation even as non-CALD numbers declined.
Geographical Spread and Industry Impact
Geographically, sole traders operate across the nation. Approximately two-thirds work in metropolitan areas, while a quarter serve regional Australia where they provide vital services and economic activity.
While construction remains a dominant sector, the fastest growth is occurring in health care, social assistance, and transport. These industries are meeting emerging needs from aged care to disability support, demonstrating how sole traders adapt to changing community requirements.
Young Australians, career switchers, and older women are increasingly shaping sole trader activity. Many are stepping into new industries, supporting essential services, or filling gaps in their local communities.
Invisible Challenges and Real Impact
Behind these statistics are real people facing significant challenges. Approximately 18,500 sole traders live with profound health challenges, with one-third of those requiring ongoing support operating in regional areas.
Payment disputes represent another pressing issue. In transport and warehousing, nearly half of all disputes handled by the Ombudsman in 2025 concerned payment problems – highlighting the vulnerability of sole traders in supply chains dominated by larger players.
Why Policy Must Evolve
If policymakers want to nurture productivity, participation, and inclusive economic growth, they must recognize how modern Australians are using enterprise to build livelihoods. The evolving reality of self-employment demands a fresh, fit-for-purpose policy approach that:
- Improves visibility and insights to better understand who sole traders are and what they need
- Ensures fairer payment practices to protect those most exposed to late or non-payment
- Supports carers and those with health challenges, recognizing the human realities behind business registration
- Designs inclusive programs that embrace cultural diversity and regional dynamics
- Supports knowledge programs with particular focus on how technology can assist sole traders
- Includes regulatory evaluation to assess how well regulators engage with this sector
Current debates about productivity improvement and regulatory streamlining often bundle all small businesses into a single cohort. However, the resources and capabilities of a small enterprise with multiple employees differ substantially from those available to individual sole traders.
When considering tax simplification and regulatory streamlining, having a sharper focus on sole traders would deliver significant dividends. This important and fast-growing cohort plays a crucial role in generating livelihoods, seeding innovation, and enabling economic participation.
Sole traders embody the spirit of self-reliance and entrepreneurship that Australians cherish. They are not just economic actors; they are community builders, innovators, and problem-solvers. If Australia truly believes in giving everyone a fair go, it's time to give sole traders the policy attention they deserve.
