Canberra is Australia’s online microbusiness capital according to recent data by domain registrar and hosting provider GoDaddy, with the city beating out some of Australia’s largest cities, including Melbourne, Sydney, Brisbane, Perth and Adelaide, to nab the top spot.
Australia’s capital city even towered over the figures coming in from the cities of London and Westminster in the United Kingdom.
Venture Forward, an international research initiative launched by GoDaddy in 2018 to examine and analyse the performance of more than a million global online microbusinesses in their local economies and communities, combed through data from more than 300,000 Australian online microbusinesses and gave every Level 3 Statistical Area in Australia a microbusiness density score.
According to the data, Canberra leads the way when it comes to microbusiness density, with approximately 32 online microbusinesses per 100 residents as of December 2023, rounding up from the 31.9 figure in the report.
The second city on the list, the Gold Coast, has 11.5 online microbusinesses per 100 residents, with Adelaide City following with 5.6 microbusinesses.
Sydney Inner City and Melbourne City took the fourth and fifth spots on the list, revealing figures of 5.4 and 4.8 according to GoDaddy Venture Forward’s data.
Figures from the cities of London and Westminster showed 17 online microbusinesses per 100 residents, with Canberra boasting almost double the number of online microbusinesses compared to the UK cities.
Canberra resident and owner of hair salon Matriarch Hair, and consulting business Sarah McPhillips Consulting, Sarah McPhillips said having an online presence has been invaluable in helping her businesses grow.
“Not only financially but also to reach out to more clients and supporters,” she says.
“Most of my new clients come to my businesses based on what they see on the website – it’s a crucial tool to communicate who we are and what we do.
“I’m currently working on an online shop and hope to make it a key part of my salon and latest venture.”
McPhillips added that Canberra is primarily a public service town.
“So entrepreneurs are able to get an amazing support network of government and other small businesses through bodies like the Canberra Business Chamber or Canberra Women in Business, of which I’m a member,” she says.
“This support means entrepreneurs get the help they need to navigate the challenges of running their own business while positively contributing to local communities.
“It also means that people are inclined to enjoy both the benefits of a public service salary and the flexibility of a side hustle.”
The data also revealed that for Australian entrepreneurs, online microbusinesses generated a significant earning potential, with 21% earning over $10,000 a year.
Forty percent of online businesses provide services to customers across Australia, while 29% primarily only serve customers in their own state or territory.
When it comes to employment, the study found that 40% of respondents were fully employed by their venture and 35% are planning to hire one to three new employees within the next year.
GoDaddy Australia market lead Suzanne Mitchell said the Venture Forward microbusiness density data demonstrates the sheer prevalence of online microbusinesses across Australia.
“They have the power to help grow the economy, and also the potential to provide new jobs and opportunity in their local communities,” she says.
“This data suggests that right now, our capital Canberra is the heart of a thriving online microbusiness community.
“There are very few research studies that focus specifically on companies with under 10 employees in Australia.
“GoDaddy aims to change that by sharing this data with businesses and policymakers, helping them to make informed decisions about entrepreneurs and the challenges and opportunities they face.”
Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.
