The Vanishing Entrepreneurs: A Disturbing Trend and What It Reveals About Our Economy
There’s a statistic that’s been haunting me lately: 135,000 jobs that never existed. Not because of a recession, a pandemic, or a technological upheaval, but because entrepreneurs in New South Wales (NSW) are scaling back their ambitions. According to a recent report, the number of entrepreneurs starting and growing businesses in NSW has plummeted to its lowest point in 35 years. What’s even more striking is that if entrepreneurship rates had remained at their 2000 levels, NSW would have seen an additional 135,000 businesses—and the jobs, opportunities, and investments that come with them.
What makes this particularly fascinating is how it reflects a broader shift in the economic landscape. Entrepreneurship isn’t just about individual ambition; it’s a barometer of economic health. When entrepreneurs thrive, so does the economy. But when they retreat, it’s a red flag. Personally, I think this decline isn’t just a numbers game—it’s a symptom of deeper systemic issues that are eroding the very foundation of small business growth.
The Numbers Don’t Lie, But They Don’t Tell the Whole Story
The data is stark: entrepreneurship rates in NSW have dropped from 8% in 2000 to less than 5% today. Meanwhile, the number of non-employing businesses has grown by 27% since 2016–17, compared to just 15% growth among businesses that actually hire staff. What many people don’t realize is that this isn’t just about fewer people starting businesses—it’s about fewer businesses scaling up. The proportion of new businesses hiring staff within their first year has fallen from 35% in 2011 to 27% in 2025.
From my perspective, this trend is a canary in the coal mine. It’s not just that fewer people are taking the leap into entrepreneurship; it’s that those who do are struggling to expand. This raises a deeper question: What’s stopping them?
The Squeeze on Small Businesses: A Perfect Storm
Debbie Hatumale-Uy, the founder of Only The Sweet Stuff, an e-commerce arts and crafts business, offers a firsthand account of the challenges. Her business boomed during the COVID-19 years, but the soaring cost of living has forced her to cut back on employees and hours. She’s now juggling three businesses just to stay afloat, a strategy she describes as “not putting all your eggs in one basket.”
Her story is a microcosm of a larger trend. Small businesses are being squeezed from all sides—high costs, cautious consumers, and economic uncertainty. One thing that immediately stands out is how the cost of living crisis is rippling through the economy. When households cut back on discretionary spending, small businesses like Debbie’s feel the impact almost immediately.
What this really suggests is that the decline in entrepreneurship isn’t just about individual choices; it’s about structural issues. High energy costs, regulatory burdens, and compliance requirements are making it harder than ever to start and grow a business. If you take a step back and think about it, this isn’t just a NSW problem—it’s a global one. Small businesses everywhere are facing similar headwinds, and the consequences are far-reaching.
The Broader Implications: A Stifled Entrepreneurial Culture
Joseph Carrozzi, President of Business NSW, calls the situation “disturbing,” and I couldn’t agree more. The decline in entrepreneurship isn’t just an economic issue; it’s a cultural one. Entrepreneurship is about more than just creating jobs—it’s about innovation, risk-taking, and the pursuit of dreams. When that culture is stifled, we all lose.
A detail that I find especially interesting is Carrozzi’s call for a NSW Future Entrepreneurs Strategy. He’s right to emphasize the need for long-term change, but I wonder if the solution lies solely in government intervention. While reducing spending and encouraging business activity are important, they’re only part of the equation. We also need to address the psychological barriers—the fear of failure, the lack of confidence, and the perception that starting a business is too risky.
In my opinion, the decline in entrepreneurship is a wake-up call. It’s a reminder that economic growth isn’t just about big corporations or government policies; it’s about fostering an environment where individuals feel empowered to take risks. If we don’t address the root causes of this decline, we risk losing more than just jobs—we risk losing the spirit of innovation that drives progress.
Looking Ahead: What’s Next for Entrepreneurship?
So, where do we go from here? Personally, I think the solution requires a multi-faceted approach. Governments need to reduce barriers to entry, but communities and businesses also have a role to play. Mentorship programs, access to capital, and a cultural shift that celebrates failure as a stepping stone to success are all critical.
What makes this moment particularly interesting is the potential for technology to level the playing field. E-commerce, social media, and digital tools have made it easier than ever to start a business. But as Debbie’s story shows, these tools aren’t enough on their own. We need a holistic approach that addresses both the practical and psychological challenges of entrepreneurship.
If you take a step back and think about it, the decline in entrepreneurship isn’t just a problem—it’s an opportunity. It’s a chance to rethink how we support small businesses, how we foster innovation, and how we build a more resilient economy. The question is, will we seize it?
Final Thoughts: A Call to Action
The vanishing entrepreneurs of NSW are more than just a statistic—they’re a reflection of our collective priorities. Do we value innovation and risk-taking, or do we prioritize stability and caution? From my perspective, the answer isn’t either/or; it’s about finding a balance.
What this really suggests is that we need to rethink our approach to entrepreneurship. It’s not just about creating jobs; it’s about creating a culture that values creativity, resilience, and ambition. If we can do that, the 135,000 jobs that never existed might just become the 135,000 jobs that define our future.
In the end, the decline in entrepreneurship isn’t just a problem for NSW—it’s a challenge for all of us. How we respond will determine not just the health of our economy, but the kind of world we leave behind. And that, in my opinion, is what makes this issue so urgent—and so fascinating.
