Australia’s Slowest Growth Small Business Sectors for 2025

BizCover, Australia’s leading online business insurance platform, has unveiled its Small Business Growth Report for 2025, shedding light on the sectors facing the most significant slowdowns in today’s challenging economic climate. The report, based on an in-depth analysis of small business insurance policy requests, provides a critical snapshot of industries struggling to maintain momentum.

As economic pressures mount, understanding which sectors are slowing—and why—can help small business owners and investors navigate potential pitfalls. The report highlights these trends alongside areas of growth, offering a roadmap for adapting to Australia’s ever-changing business landscape. Recognizing these shifts is essential for small businesses to position themselves effectively in 2025 and beyond.

Top 5 Sectors Showing Slowing Growth

While some sectors saw booming growth in 2024, others saw a decline in small business insurance requests compared to the previous year. This could reflect recent shifts in technology trends, consumer preferences, the cost-of-living crisis and industry demands.

Top 5 Sectors Showing Slowing Growth

Based on percentage change of small business insurance policy requests from 2023-2024

Rank

Sector

Percentage Increase

1

Surveying

-15.7%

2

Data processing, web hosting and electronic information storage services

-15.4%

3

General Retail

-9.8%

4

Tertiary Education

-6.9%

5

Wood and Paper Manufacturing

-6.7%

The top two sectors showing the least growth were:

1. Surveying – This is potentially due to a slowdown in infrastructure projects and a shift towards firms that offer bundled services like engineering, construction management, and environmental assessments alongside surveying.

2. Data processing, web hosting and electronic information storage services – This is likely due to the rise of automation and the dominance of large cloud providers. Smaller businesses are facing increased competition from large cloud providers and automated services that dominate the market.

These two sectors not only experienced the largest declines compared to 2023, but also recorded the lowest overall volume of requests in 2024 across all 70+ sectors analysed.

Top 5 Slowing Small Business Sectors in Australia by volume of requests

Top 5 Slowing Small Business Sectors in Australia

Based on volume of small business insurance policy requests in 2024

Rank

Sector

1

Data processing, web hosting and electronic information storage services

2

Surveying

3

Printing

4

Utilities

5

General Trades

However, declining sectors still offer unique opportunities for entrepreneurs.

“Even a shrinking industry can present unique business opportunities for those willing to take on the challenge,” says Kenny.

Here are some ways to capitalise on market shrinkage:

1.  Data Processing, Web Hosting, and Electronic Information Storage Services: Specialise in niche markets, like healthcare, to become a go-to provider.

2. Surveying:  Diversify into sustainable planning or advanced geospatial technologies, areas where there is growing demand due to environmental concerns and smart city initiatives.

3. Printing: Shift to sustainable, eco-friendly practices to help clients reduce their environmental impact while meeting their needs.

Looking Ahead to 2025: Opportunities for Aussie Business Owners

As sectors like Societies, Associations, and Groups continue to surge, alongside the steady demand for Aged & Disability Care, the coming years may offer significant opportunities for Australian business owners to explore.

Tracking which small business sectors are growing or slowing allows entrepreneurs to predict trends, prepare for challenges, and safeguard their interests.

Sharon Kenny, Head of Marketing at BizCover, comments, “Despite economic challenges, certain sectors have experienced impressive growth, which signals new opportunities for business owners and investors alike. By understanding these shifts, businesses can better position themselves for success in 2025 and beyond.”

Says Kenny, “Rather than being intimidated by the growth or decline in their sectors, small business owners should utilise times of change by leveraging these shifts to build on their strengths.

“Focusing on what makes your business stand out—whether that’s offering a specialised service or reaching a niche audience—can help position you for long-term success.

Another way that many small business owners choose to protect their businesses is by purchasing business insurance.”

The post Australia’s Slowest Growth Small Business Sectors for 2025 appeared first on Small Business Connections.

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