Australian entrepreneurs are increasingly buying established businesses, rather than opening new startups.
Of the 15,000 business loan requests submitted through Money.com.au in 2024-2025, 2,300 were aimed at buying an existing business, a Money.com.au report found.
“We’re seeing a rise in acquisition-focused entrepreneurs who are opting for businesses with existing revenue, systems and customer bases, rather than taking on the risk and uncertainty of a new venture or startup,” said Money.com.au business finance expert Phil Collard.
“About 84% of those seeking to purchase an existing business required immediate funding, which tells us there’s a sense of urgency — these buyers are often ready to move quickly when the right deal arises and they don’t want delays in their financing.”
The report found that 42% of those requesting loans to buy existing businesses saw average monthly turnovers above A$30,000, indicating these are small businesses generating at least $100,000 each year.
Small businesses are contributing almost $590 billion in value to Australia’s GDP in 2022-2023, around one third of the country’s total.
Agriculture and rental services boasted the most profitable small businesses in that period, by their share of GDP value added.
Most applications to purchase an existing business were filed in New South Wales, at 32%, the report said. Queensland received 26%, while Victoria received 24%.
