Commonwealth Bank of Australia (CommBank) research reveals that Millennials and Gen Z are at the forefront of new business creation in Australia, accounting for 62% of new business account openings over the past year.

Millennials alone represent 49% of these new ventures, while Gen Z contributes 13%. In comparison, Gen X accounts for 27% and Baby Boomers for 10%. The retail trade, personal and business services, and construction sectors are the most popular among these younger entrepreneurs. Gen Z shows a particular interest in retail trade and construction, whereas Millennials are more inclined towards property and business services, followed by construction and retail.

Rebecca Warren, CommBank’s Small Business Banking Executive General Manager, stated, “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.”

The age distribution of new business account openings has remained stable since the pandemic, but there is an expectation that Gen Z’s share will grow as they age.

“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,” Warren noted.

The latest data comes as CommBank takes an active role in supporting young entrepreneurs and the creative industry by sponsoring the AFC Australian Fashion Week. The bank is the presenting partner for The Frontier and First Nations shows, which will feature over 30 designers in 2025.

“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,” Kellie Hush, CEO of AFC Australian Fashion Week presented by Shark Beauty, said. “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 in Australia is predominantly female, with 77% of the workforce being women. Hush highlighted this aspect, stating, “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’s Household Spending Insights Index indicates significant increases in spending on household goods, particularly in online marketplaces, department stores, clothing, and furniture stores. This aligns with the bank’s broader strategy to support sectors where young entrepreneurs are actively engaging.

Warren further commented on the entrepreneurial landscape, “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.”