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Young sole traders outperform older generations in confidence, earnings, and tech

Hnry

Sydney, 12 August 2025 - Young Australians running their own businesses are outperforming older generations across key measures – including confidence, adaptability, and earnings outlook – according to new data revealing a generational divide among the country’s 1.6 million sole traders.

The insights come from the latest Hnry Sole Trader Pulse, a quarterly, independent survey of Australia’s 1.6 million sole traders commissioned by Hnry, the world’s first digital accountant and tax service for sole traders.

Key findings include:

• Confidence in the future: 59% of 17–34-year-olds say their business’s financial outlook is good, compared to 45% of 35–54s and 32% of over-55s
• Economic optimism: More than double the number of young sole traders rate the economy’s health positively compared to over-55s (36% vs 15%)
• Belief in leadership: Twice as many young sole traders have confidence in the government’s performance this term
• Tech adoption: 74% of businesses under two years old are using technology to adapt to economic conditions
• Digital-first mindset: Just 38% of 17–34-year-olds use a traditional accountant, compared with 58% overall.

Magician Michael Webb, aka Magic Mike, rose to national fame on Australia’s Got Talent in 2022 and says his business has gone from strength to strength over recent years.

“I've continued to see revenue grow each year, and importantly, the amount of new requests I receive each week is increasing”, he says.

“When it comes to marketing and making the most of the eyes on social media, this is where our addiction to it has an upside... younger business owners realise organic content is the most effective way to reach new clients,” he says. 

Olympic sailor and sole trader Jim Colley, 27, believes youthful optimism and risk-taking give younger business owners an edge.

“If someone had told me in 2018 what it would take to qualify for the 2024 Olympics, I probably would have thought twice – which is the same when it comes to starting a business,” he says.

“Younger generations have more energy and fewer life commitments... Nothing can replace experience, but a willingness to go all in does give you an edge.”

Colley adds that, while he’s financially stable, economic realities such as housing affordability and the cost of living remain major concerns amongst his peers.

“I have enough to live on, am close to paying off my HECS debt and am also saving money. But it’s nearly impossible to get into the housing market without some form of parental assistance.”

Hnry Australia Managing Director Karan Anand says the latest Pulse results show younger sole traders are making the most of the opportunities, even in a softer economy.

“They’re confident, tech-savvy and optimistic – and that shows up in how they operate,” he says. “Their agility is a real strength – for businesses under two years old, 74 per cent are using tech to adapt, 58 per cent have invested in extra training, and 58 per cent have ramped up their marketing to deal with inflation.”

Hnry has also submitted to the government’s upcoming Economic Reform Roundtable, calling for better recognition of sole traders as core contributors to the economy.

“Increasingly, younger people are turning away from the traditional model of work to be self-employed,” says Anand.

“They don’t get paid to show up; they get paid to deliver – every hour must count. These Pulse results clearly illustrate the value they deliver, and the need for the government to pay better attention to what’s happening with younger generations of sole traders.”

Anand says younger business owners are also redefining how they manage their cash flow – skipping traditional accountants in favour of digital tools.

“Older generations are far more likely to have that classic accountant relationship,” he says. “The Pulse also found 58 per cent of all respondents use an accountant, but that drops to 45 per cent among 35–54s and just 38 per cent for those aged 17–34. It’s clear the next generation is embracing digital solutions – and those habits are clearly paying off when it comes to business performance.”

The Hnry Sole Trader Pulse was conducted from 3–10 June 2025 with a maximum margin of error of ±4.4%.

ENDS

About us:

Hnry is the world's first digital accountant and tax automation service for sole traders, designed to make self-employment simple, affordable and stress-free. Available in the UK, Australia and NZ and processing billions of dollars in payments each year, Hnry automatically calculates and pays taxes as you earn and takes care of invoicing and expenses with on-demand accountancy support - meaning you never have to think about tax again. Hnry is Australasia’s fastest-growing accountancy service and won the People’s Choice Award for ‘Fintech Organisation of the Year’ in 2022 and 2023. Find out more at www.hnry.com.au.

Contact details:

Jacinda Thorn, Public Relations | +61430620616 | jacinda @thornpr.co

Morgan Spencer, Public Relations | +61447234419| [email protected]