Australia’s Next Productivity Boom: Why the suburbs could be the new small business powerhouse
02/05/2026
Small businesses in outer metro suburbs could provide the next big productivity boom for Australia, according to new research released today by Visa, a world leader in digital payments.
The Entrepreneurship and Productivity in Australia’s Small Businesses report mapped regions against business growth and level of entrepreneurship to identify where business ecosystems are already thriving and where there is potential for growth. Visa analysis found that while businesses in many outer metropolitan suburbs of capital cities like Sydney, Adelaide and Melbourne tend to grow at a slower pace than the national average, these areas also have a high number of new businesses forming.
The findings suggest these regions, which benefit from a strong presence of professional services companies, access to skilled talent and a diverse customer pool, hold significant opportunity to grow business productivity and transform into vibrant small business hubs.
Alan Machet, Visa’s Group Country Manager for Oceania, commented: “With industry and policymakers working together, these regions could emerge as the new small business powerhouse, fuelling productivity and job creation for their communities and Australia.”
“That kind of collaboration could help identify and create growth opportunities, strengthening access to new business training and digital tools and capabilities that help small businesses scale with confidence.” Machet added.
The report also found small business opportunities are strongly influenced by industry sectors, with small businesses dominating service-focused sectors such as restaurants, lodging, retail services and professional services, both in terms of number of businesses and their ability to compete with larger players for revenue.
Visa’s Small Business Advantage Program helps small businesses trade smarter, grow faster and compete on a global stage, removing friction and unlocking opportunity which could help collectively save small businesses $500 million over 5 years.1 The program includes the Visa Vibe Grant Program, practical tools and insights such as fraud toolkits, and the Acquirer Small Business Program, which gives access to some of the lowest payment acceptance costs in the country.
For more information please visit the Visa Small Business Hub - https://www.visa.com.au/run-your-business/small-business-tools/smb-hub.html
1 Based on Visa estimates
Report methodology
Visa studied the commercial landscape across Australia’s 88 Statistical Area Level 4 (SA4) regions, tracking anonymised transaction data from VisaNet over a 12-month period (2023-2024). Small businesses are defined as those with the lowest 10% of reported payment volume of Visa transactions. Two key parameters were used to benchmark geographies: Business growth (percentage change in payment volumes over a 12-month period) and level of entrepreneurship (share of newly created businesses relative to the existing base over a 12-month period).
About Visa
Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.