Xero research highlights entrepreneurial motivations and gaps in long-term planning
Australian small business owners are motivated more by lifestyle and independence than by scaling overseas, according to new research by Xero.
Only 17% of SMEs aspire to international growth, despite record numbers of Australians starting businesses in the past year.
Xero’s It’s Your Business report, which surveyed 500 Australian small business owners, found:
- 43% want to be their own boss
- 31% are driven by lifestyle priorities
- 29% are motivated by earning more money.
The research also highlighted that 83% of respondents see Australia as a good place to start a business. This aligns with ABS data, which shows that almost 300,000 people started businesses in the year to June 2024.
Barriers to global ambition
While entrepreneurial activity is strong, global ambition remains muted. 47% of small business owners expressed concern about the economic environment, citing global risks such as US tariffs, volatility and exchange-rate fluctuations. These factors contribute to hesitation about scaling internationally.
Angad Soin, Xero Managing Director ANZ and Global Chief Strategy Officer, said unlocking the full potential of Australia’s small business sector depends on creating the right environment:
“We know Australians value their lifestyle, so it makes sense that so many of us want to be our own boss; to chase that flexibility and freedom. But it raises the question: does Australia have the right conditions to support small businesses in recognising their full potential?”
Planning for the future
The report also revealed that many entrepreneurs are focused on the short term: 49% admitted they do not have a long-term succession plan in place. Xero emphasised that defining an ‘end game’ is crucial, and that digital tools and trusted advisors can help turn business owners’ visions into reality.
“Australia’s small business community is more diverse than ever, reflecting the different ways small business owners measure their success,” said Soin. “For many, it’s no longer about fitting into a traditional mould, but about creating something that works for you.”
At Alliott NZ, we work with business owners across Australia and New Zealand to balance lifestyle goals with strategic advisory services, succession planning, financial performance improvement and value building.
For clarity on your business end-game and a roadmap to get there, contact Alliott NZ in Auckland for a confidential discussion.
2025 Edition of ‘Doing Business in New Zealand’ now available
New 2025 Edition of ‘Doing Business in New Zealand’ now available
Sources:
- Accountants Daily – Aussie SME owners value lifestyle over international growth, Xero reveals (18 Aug 2025, by Imogen Wilson)
- Xero – It’s Your Business report https://www.xero.com/au/campaign/its-your-business-report-au/