New CommBank research has found that Millennials and Gen Z business owners continue to be the driving force behind Australian entrepreneurship, accounting for 62 per cent of new business account openings in the last 12 months.
The data found that Millennials alone made up 49 per cent of new businesses in the year to 31 March 2025, while Gen Z accounted for 13 per cent, Gen X comprise 27 per cent of new businesses and Baby Boomers made up 10 per cent.
It is also noted that construction and retail trade are the most popular sectors for Gen Z entrepreneurs, while Millennial entrepreneurs favour property and business services.
While the age breakdown of new business transaction account openings has remained fairly steady since the pandemic, the report predicted that the Gen Z cohort will grow in the coming years as they get older, and other age groups focus on the growth stage of their business.
CommBank small business banking executive GM Rebecca Warren commented that the various headwinds businesses had encountered over recent years did not appear to be dissuading too many younger entrepreneurs.
“Gen Z and Millennials account for 72 per cent of all new businesses in retail trade, showing younger Australians are willing to pursue their passion despite the challenging environment this sector has faced and continues to tackle,” Warren said.
“Australian small businesses have dealt with many challenges over the last few years, and their resilience has never been more evident than in the way they’ve been navigating the challenging market, the impacts of the election, tariffs and changes to rates. It is great to see that the entrepreneurial spirit in Australia is very much alive, with under-45s continuing to lead on new business start-ups. We are proud to be supporting Australian small business owners achieve their goals, whether they’re just starting out, or growing their business.”
The research was released on the occasion of the Australian Fashion Council (AFC) Australian Fashion Week in Sydney this week. CommBank is a sponsor of the event, which champions young entrepreneurs, First Nations designers, and the Australian creative industry.
