New CommBank research shows that Millennials and Gen Z business owners continue to drive Australian entrepreneurship, together accounting for 62 per cent of new business account openings in the last 12 months, with retail trade, personal and business services, and construction being the most popular sectors for these age groups.
CommBank data shows that Millennials alone made up 49 per cent of new businesses in the year to 31 March 2025, while Gen Z accounted for 13 per cent, Gen X for 27 per cent and Baby Boomers made up 10 per cent of new businesses.
Looking at Gen Z, retail trade is the second most popular sector for new businesses after construction, while Millennials favour property and business services before construction and retail.
While the age breakdown of new business transaction account openings has remained fairly steady since the pandemic, it is likely the Gen Z cohort will grow in the coming years as they get older, and other age groups focus on the growth stage of their business.
The research comes as CommBank announces its sponsorship of the Australian Fashion Council (AFC) Australian Fashion Week which kicked off in Sydney this week, championing young entrepreneurs, First Nations designers, and the Australian creative industry more broadly.
CommBank Small Business Banking Executive General Manager, Rebecca Warren, said the various headwinds businesses had encountered over recent years did not appear to be dissuading too many younger entrepreneurs.
"Gen Z and Millennials account for 72 per cent of all new businesses in retail trade, showing younger Australians are willing to pursue their passion despite the challenging environment this sector has faced and continues to tackle," Ms Warren said.
"Australian small businesses have dealt with many challenges over the last few years, and their resilience has never been more evident than in the way they've been navigating the challenging market, the impacts of the election, tariffs and changes to rates.
"It is great to see the entrepreneurial spirit in Australia is very much alive, with under 45s continuing to lead on new business start-ups. We are proud to be supporting Australian small business owners achieve their goals, whether they're just starting out, or growing their business."
Recent data from CommBank's Household Spending Insights Index^ also shows significant gains in Household Goods spending in the year to March were driven by online marketplace and department stores, followed by clothing and furniture stores.
This year the AFC Australian Fashion Week will have over 30 designers showcasing their collections, including Aje, Romance Was Born, ESSE, Farage, Lee Mathews, NICOL & FORD, and Carla Zampatti. CommBank will be the presenting partner of The Frontier, and First Nations shows Liandra, Ngali, and Joseph & James.
Kellie Hush, CEO AFC Australian Fashion Week presented by Shark Beauty, said:
"We are thrilled to have the Commonwealth Bank's incredible support in 2025. CBA understands how important it is to nurture small and medium businesses in the early stages of growth. The business of fashion continues to be an exciting but challenging industry, which is why Australian Fashion Week must continue to grow and support the industry. AFC Australian Fashion Week 2025 will showcase a diverse, creative, and a distinctly Australian fashion spirit.
"The fashion industry is also a major employer of women in Australia, with 77 per cent of our industry being women. The figure makes fashion one of the few professional industries dominated by women, providing opportunity for them to flourish and finesse their specialisations."
^CommBank Household Spending Insights (HSI) Index for March 2025, released on 11 April 2025. Full report can be accessed here.
Note about the research: Figures in this media release are based on CommBank Business Transaction Account openings between 1 April 2024 and 31 March 2025. The term Gen Z refers to those born between 1997 and 2012; Millennial refers to individuals born between 1981 and 1996; Gen X refers to those born between 1965 and 1980; Baby Boomer refers to those born between 1946 - 1964.
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