According to the Australian Bureau of Statistics (ABS), a small business is one that employs less than 20 staff. This could be a sole trader, partnership, company, family business or other business model.

The ABS also released the following statistics about small businesses in Australia.

As of June 2001, there were 1.2 million Australian small businesses operated by 1.6 million people. Of these businesses:

• 14% had been operating for less than a year
• 35% had been operating for between one and five years
• 19% had been operating for between five and ten years
• 32% had been operating for over ten years
• the owner tended to have daily control of running the business, making the key decisions and managing the output
• 67% of small businesses in Australia are home-based and make good use of information technology
• 88% of small businesses are 'micro-businesses', having up to five employees.

For more facts about Australian small businesses, visit the ABS website.