Page 3995 - Week 13 - Tuesday, 25 November 2014

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MR SMYTH (Brindabella) (3.59): It is a great opportunity to stand up here and praise the 24,377 individuals who had the courage to take a punt, to get out there, to follow their dream and either purchase or start their own small business. These are from the ABS small business stats: there are 24,377 small businesses in the ACT with 13,000 in the electorate of Canberra and some 11,000 in the electorate of Fraser. If we break them down by industry they include 522 businesses in the agriculture, forestry and fishing category, only 22 in mining, 573 in manufacturing, 22,704 in the service industries—some 93 per cent of all businesses—and 556 in unclassified businesses.

It is interesting when you look at those numbers to note not only some of the diversity but also the concentration in the service industries. The Australian government’s small business key statistics and analysis report also makes comment on that. It follows some conversation about other jurisdictions and goes on to say:

Conversely, the Australian Capital Territory has the highest proportion of small businesses in the services sector (over 93 per cent) and the smallest proportion of small businesses in the agriculture, forestry & fishing, mining and manufacturing sectors.

I am sure we all understand why the agriculture, forestry and fishing, mining and manufacturing sectors have such a small number—that is, the nature of the city-state. But what is interesting is another section in the report that looks at the ratio between the number of businesses and the population of the state. Page 37 of the report says:

While in the more populous states the proportion of small businesses aligns very closely to the proportion each state has of the total Australian population, the smaller states and territories are underrepresented by small businesses relative to population size.

Further it says:

Tasmania, accounted for 2.3 per cent of the total Australian population, but accounted for only 1.8 per cent of the small business population in June 2011. Both the Australian Capital Territory and Northern Territory are also underrepresented by small business activity, with the Australian Capital Territory accounting for 1.6 per cent of the total population and 1.2 per cent of small businesses …

There is both the rub and the opportunity for this territory. It is quite clear that small businesses are wealth creators. Indeed, a recent insight report in ASDReports called “Running a family business” says in the summary:

Family businesses continue to be a fundamental source of private wealth creation, and a key engine driving the world economy.

One of the key highlights in the report is that approximately 38 per cent of all firms in emerging Asia Pacific markets were only listed on the stock market after the year 2000. Again, there is the opportunity. We clearly have a desire, I would assume, from


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