Ahead of International Women’s Day, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO)  is shining a spotlight on the growing number of women running small businesses and the challenges they still face.

According to the Ombudsman, more than half a million Australian women now say their main job is running a small business, making up 35 per cent of small business owners. That’s a big jump from the days when female business owners were a rarity.

Bruce Billson, Australian Small Business and Family Enterprise Ombudsman, said the growth in women-led businesses marks a major shift.

“More than half a million Australian women say their main job is running a small business, representing 35 per cent of small business owners. The same share as across all business owners nationally, according to the ABS Census.

“This represents a profound shift. In 1966, women accounted for just 19 per cent of business owners. Today, women are starting, leading and sustaining businesses across every sector and every region of the country. This progress deserves recognition, and it also demands action,” Billson said.

Jumping through hoops the norm

While many women in business are optimistic, most still face barriers to growth. Billson said just over half of women-led businesses reported strong growth opportunities. Yet only a small number said the path was obstacle-free.

“When we asked women-owned and led businesses about their prospects, just over half reported strong opportunities for growth. At the same time, only five per cent said they faced no barriers to growing their business.”

Funding still a sticking point

Access to finance remains one of the biggest challenges for women-led businesses, with some women reporting bias when applying for business loans.

“Access to capital remains the most commonly reported barrier. Some reported being advised to add a male to their loan application in order for business finance to be approved, and this is a clear signal that bias persists in parts of the system.”

Women also reported the twin pressures of juggling business and caring responsibilities, especially when operating in rural or regional areas.

“Women also highlighted the dual responsibility of running a business while caring for others as a significant and often invisible constraint,” Billson said. “These pressures are particularly pronounced in regional Australia, where access to services and support can be limited.”

Stereotypes limiting women’s prospects

The Ombudsman said outdated stereotypes about business owners continue to hold some women back.

“Many women reported being judged against a narrow and outdated view of what a ‘typical’ business owner looks like, with assumptions that they are distracted by responsibilities and priorities outside their business. These assumptions can limit access to finance, government procurement and other opportunities critical to business growth.”

Billson said better support systems and mentoring could help more women succeed in business.

“Rather than outdated assumptions about who a business owner should be, or one-size-fits-all models that assume a single pathway to success, policy, finance and support systems need to adapt to how women actually do business.”

Optimism remains strong

Despite the challenges, most women business owners remain positive about starting and running a business in Australia.

“International Women’s Day is an opportunity to recognise and celebrate the vital contribution women make to Australia’s small business economy,” Billson proclaimed.

“This year’s [UN Women Australia]  ‘Balance the scales’ theme reinforces a simple expectation that women should be safe, heard, and free to shape their own lives. In this context, to ensure women in small and family business are heard, policy settings should reflect the realities of the women in small and family business. That means fair access to capital, removing structural barriers and outdated assumptions, designing policy and finance systems to how women do business.”

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