Australia’s entrepreneurial story has long been written state by state. Victoria’s gold rush turned Melbourne into a magnet for risk-takers, while Sydney’s harbour made New South Wales the nation’s centre for finance and trade.
Western Australia built its identity on resources, and Queensland on agriculture, tourism, and later, lifestyle-driven migration. Smaller states carved out niches of their own such as defence in South Australia, food and tourism in Tasmania, and government in the ACT.
Those legacies still echo, but the race looks different today. Entrepreneurship is no longer only about geography or resources; it’s about networks, migration, culture, and cost of living. The scoreboard shows how quickly things are shifting. In August 2025, 104,784 new ABNs were registered across Australia, up 20.11% year on year.
If you’re keen to know which state is really winning at entrepreneurship, we’re here with the data from Lawpath’s Business Index (August 2025 edition) and the stories behind why some regions are pulling ahead while others are holding their ground.
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Australia’s entrepreneurship boom by the numbers
So where are those 104,784 new businesses coming from, and what does the map look like when you zoom in?
New South Wales is still the heavyweight, with 32,857 new registrations in August alone. But is sheer volume the same as entrepreneurial momentum? Not quite.
Look west, and you’ll see Western Australia growing faster than any other state (+28.29%). For a region long tied to mining, this signals a broader trend: founders diversifying into tech, trade, and services.
Meanwhile, Queensland is sprinting ahead (+27.01%), fuelled by younger demographics, lifestyle migration, and a culture that embraces side hustles as much as startups. Even the ACT is punching above its weight (+25.78%), proving that government towns can become entrepreneurial hubs in their own right.
So what’s the real takeaway? NSW may dominate in scale, but WA, QLD, and the ACT are winning the speed game. And that sets up the big question: is it better to be the state with the most businesses, or the one where entrepreneurship is multiplying fastest?
Why New South Wales is still the scale leader
New South Wales continues to be the place where ambition meets scale. While other states are racing ahead in growth, NSW remains the hub where entrepreneurs go to build businesses that can play on a national and global stage.
Here’s why NSW holds that position:
- Finance and tech hubs: Sydney is Australia’s financial capital and home to more than 800 fintech firms (SmartOSC). This concentration gives founders access to capital and cutting-edge platforms in one place.
- Talent and skilled migration: NSW approved 17,430 skilled visa applications in March 2025, up 25.7% year on year (Australian Migration Lawyers). A steady inflow of talent keeps businesses supplied with specialised skills.
- Investor and global HQ networks: Sydney precincts like Barangaroo and Tech Central cluster startups, investors, and universities together (BESydney). These hubs create daily collisions that spark deals and new ventures.
- Migration pipelines: Australia’s migration program prioritises skilled migrants, ensuring NSW continues to attract globally connected founders who bring networks and ideas from abroad.
Together, these factors explain why NSW is still regarded as Australia’s scale-up capital. It may not be the fastest-moving state, but it remains the most powerful platform for entrepreneurs ready to grow.
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Victoria’s steady resilience
What keeps Victoria bouncing back even when the economic headwinds blow? Here’s what drives that steady strength:
- Creative economy strength: Victoria has nearly 48,200 creative businesses as of financial year ending 2024. That large base shows how accessible and resilient the creative sector is.
- Universities + students: Melbourne’s major universities attract thousands of international students each year. It’s safe to state that these students often become founders or support small business growth via demand for services, housing, food, etc.
- Migrant diversity: The state’s multicultural population brings global networks, varied skills and risk-tolerance, fueling niche and service-based business creation.
- Economic pressures, but not collapse: Cost of living, regulatory and infrastructure constraints bite, yet Victoria manages growth because its sectors are diversified — creative, professional services, education, hospitality.
Victoria may not be sprinting ahead, but it stays in the race. It is the consistent challenger — always in the mix, rarely falling behind.
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Queensland and Western Australia are powering ahead
Queensland and Western Australia posted the fastest growth in August 2025, demonstrating how different environments can yield the same result: an increase in new businesses.
Queensland: youth and lifestyle ventures
- 21,949 new ABNs (+27.01% YoY).
- Lower living costs and lifestyle migration from southern states are driving growth.
- Younger population fuels side hustles, e-commerce, and service-led startups.
- Advance Queensland has invested over $755 million into 7,800+ innovators
Western Australia: diversification beyond resources
- 11,337 new ABNs (+28.29% YoY), the fastest growth nationally.
- Shifting from mining to tech, trade, and renewable energy.
- Backed by the WA New Industries Fund and other innovation programs.
- Perth’s proximity to Asia strengthens export-driven entrepreneurship.
Two different styles, same momentum
- QLD thrives on youth, migration, and lifestyle ventures.
- WA leverages resources while pivoting to diversified industries.
Smaller states and territories are carving niches
While the big states draw the headlines, the smaller states and territories are quietly shaping distinct entrepreneurial ecosystems of their own. Their advantage lies in agility — smaller markets that can adapt quickly and build around their strongest industries.
- ACT recorded a 25.78% rise in new ABNs, one of the highest growth rates nationally. Much of this is linked to government contracting, professional services, and ventures tied to policy and administration.
- South Australia grew 19.99%, driven by defence projects, advanced manufacturing, and the state’s long-term focus on high-tech industries.
- Tasmania added 18.25%, fuelled by tourism, food, and lifestyle businesses that leverage the state’s clean, green reputation.
- The Northern Territory lifted 19.77%, with Indigenous-led ventures and tourism playing a central role.
Each of these states shows that you don’t need scale to make an impact. By leveraging their strengths, smaller states are carving out niches that complement the broader narrative of small business growth in Australia.
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Is there a clear winner?
So, which state is truly winning at entrepreneurship? The answer depends on how you measure it. New South Wales still commands the largest scale, Victoria proves steady and resilient, Queensland and Western Australia are powering ahead in growth, and the smaller states are carving out niches that play to their strengths.
The numbers show that entrepreneurship is thriving across Australia in various ways — sometimes through scale, sometimes through speed, and often through unique local ecosystems.
To dig deeper into the trends shaping small business growth, explore the full Lawpath Business Index. And if you’re ready to take the leap yourself, check out Lawpath’s services for starting a business — from ABN and ACN registration to the legal and compliance tools you’ll need to grow with confidence.
