A new report suggests Australia’s small and medium-sized enterprises (SMEs), including cafés – which make up more than 50 per cent of national employment – have been largely sidelined in economic policy and may now emerge as the deciding voice at the Federal election in May.
The report by Media Precinct tracks three years of economic data including the challenges facing SME leaders, who are being named ‘Australia’s silent swing vote’.
With nearly 363,000 businesses closing in 2023–24 alone, and many SMEs operating without cash reserves, the paper argues that business owners are carrying the burden of rising costs and weak consumer demand with little meaningful support from either side of politics.
Key findings from the report include although SMEs constitute 50 per cent of national employment (28.7 per cent for small businesses and 21.8 per cent for medium-sized businesses), they have received minimal targeted support since pandemic recovery began.
Rising operational costs have forced many business owners to cut their own pay or dip into personal savings.
Additionally, the report found Government initiatives such as $325 energy rebates and a $20k instant asset write-off have been welcomed but are widely seen as insufficient.
“For years, this voting bloc has been politically underestimated,” says Glenda Wynyard, Lead Researcher and Managing Director of The Media Precinct.
“But in marginal seats across the country, the owners of cafés, salons, gyms, construction firms, family farms and service industries are simply fed up – and they’re ready to vote for whoever truly shows up for them.”
The report calls for a new policy agenda that delivers long-term certainty, reduced regulatory burden, and access to capital that allows SMEs to grow, employ and invest.
“This isn’t about handouts,” says Glenda. “It’s about a seat at the table. The party that listens to small and medium business will unlock a powerful, motivated, and deeply connected voter base.”
