Stop ignoring sole traders says ASBFEO

Australia’s sole traders are no longer a niche group quietly hustling away in the background. They’re a massive force in the economy and according to new analysis, they’ve been hiding in plain sight.

Data from the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), shows nearly 1.7 million Australians operated as sole traders in 2021–22. That makes sole operators the backbone of Australian enterprise, even if policy settings don’t always reflect it.

In a working world where people are blending employment, side hustles, caring roles and business ownership, ASBFEO says it’s time sole traders were properly seen and supported.

Sole traders the beating heart of enterprise

ASBFEO Ombudsman Bruce Billson says sole traders deserve far more recognition than they currently get.

“Sole traders are not just economic participants — they are the beating heart of enterprise in our country. They’re innovators, problem solvers and community contributors,” Billson said.

“If we genuinely believe in a fair go, we need policies that recognise the real lives, pressures and possibilities of this dynamic group.”

For many solo operators, that sentiment will hit home. From freelancers and tradies to carers running micro-businesses around family responsibilities, the reality of sole trading rarely fits neatly into standard business programs or compliance rules.

Women, diversity and regional Australia driving growth

One of the biggest shifts in the data is who is choosing to go it alone.

Female sole traders have grown by 31 per cent over five years, more than double the growth rate for men. Women now make up 40 per cent of all sole traders, with many balancing business ownership alongside caring responsibilities.

Cultural diversity is also a major feature of the solo economy. Culturally and linguistically diverse (CALD) sole traders account for 37 per cent of the total, with particularly strong growth in transport and warehousing – sectors that underpin supply chains and the gig economy.

And despite the city focus of many business policies, one in four sole traders operates outside major cities, delivering essential services and keeping regional economies moving.

Health care, social assistance and transport are among the fastest-growing sectors, reflecting rising demand in aged care, disability support and delivery services.

The pressure points for solo operators

While the numbers paint a positive picture of growth and diversity, the challenges facing sole traders are hard to ignore.

Many carry risks and pressures that bigger businesses can spread across teams or departments. In 2025, nearly half of all disputes brought to ASBFEO by sole traders in the transport, postal and warehousing sector were payment related.

Late payment and non-payment remain a serious threat to cash flow for solo operators, particularly those working within supply chains dominated by much larger players.

On top of that, many sole traders are managing long-term health conditions, disability or significant caring responsibilities, all while trying to keep their business viable.

“Sole traders are the unsung heroes of our economy,” Billson said.

“They are not just economic actors – they are community builders, innovators, and problem-solvers. If we truly believe in a fair go, it’s time to give sole traders the recognition and support they deserve.”

A call for fairer policy

ASBFEO says the findings should prompt a serious rethink of how sole traders are treated in policy and regulation.

Key priorities include better data and visibility, fairer payment practices, more inclusive support programs and compliance obligations that are proportionate for micro-businesses.

“Even a sharper focus on sole traders when thinking about tax simplification and regulatory streamlining would deliver big dividends,” Billson said.

“Sole traders make up the vast majority of Australia’s businesses — the everyday enterprisers keeping local economies ticking. When such a large and dynamic part of our economy is overlooked, policy simply can’t keep pace with real working lives.

“If Australia is truly the land of opportunity and entrepreneurship, we must ensure sole traders – in all their variety – get the recognition and support they deserve,” Mr Billson said.

This post first appeared on Flying Solo. You can read it here.

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