Does the location of your startup determine how successful it will be? Absolutely. The nearer you are to your materials, labor power and your target market, the more chances you’ll have of success.
To uncover which cities in Australia are thriving more than others when it comes to entrepreneurship, we analyzed 50 cities based on a series of data points. These included:
- Business survival rates
- Startup growth rate
- Number of founders
- Interest in starting a business
- Density of small businesses
We found that Shepparton leads the way as Australia’s biggest and best entrepreneurial city, while huge metropolises like Sydney scored surprisingly poorly.
Key Findings
- Ballarat, Victoria, is closely behind Shepparton with an entrepreneurial index score of 6.69/10
- Despite ranking low at 39th place overall, Sydney stands out as the city that produces the highest number of entrepreneurs. It’s also the city that is most obsessed with starting a business.
- Bowral, NSW, boasts the highest small business density, with 53,445 small businesses per 100,000 people.
Best Entrepreneurial Cities in Australia
Shepparton Outperforms the Rest
Shepparton has a long and rich history of entrepreneurship, with the likes of Campbell’s Soup and Pactum Dairy based here. It’s a substantial commercial hub in Australia – and it’s the best entrepreneurial city according to our data, with a score of 6.96 out of 10.
This ranking is due to a significant rise in small businesses over the past three years, as well as the fact that it has the highest number of small businesses per 100,000 people, making it a thriving hot spot for new enterprises.
Ballarat, Victoria, Comes a Close Second
Ballarat, Victoria, wasn’t far behind Shepparton with its score of 6.69/10. One of the coldest cities in Australia (if not officially the coldest), Ballarat is also known for having less hustle and bustle, which can help small businesses thrive.
It’s experienced strong growth in small businesses over the last few years, becoming a beacon for startups, reflecting a robust local economy, a commitment to renewables, and a supportive business environment that welcomes techies and innovators.
Geelong Comes Third
Geelong was the third highest-ranked Australian city for entrepreneurship, recording a respectable score of 6.58/10. It’s the second-largest Victorian city, and while it’s obviously known for its sporting achievements over the years, its significant urbanity makes it attractive to budding entrepreneurs.
Not just this, but having close links with Melbourne makes Geelong a strategic location for entrepreneurs, while its dynamic business ecosystem is another reason – along with an eye-opening increase in small businesses – for its high score.
Sydney and Melbourne Flounder
Sydney and Melbourne might be Australia’s two largest cities – but they’re lacking in entrepreneurial flair right now.
In fact, Sydney scored a dismal 3.88/10 based on our data sets, which meant it came 39th out of all the 50 Australian cities we analyzed.
Melbourne – which has a population of over 5,000,000, completely dwarfing Shepparton – scored even worse and finds itself right down in 40th place.
These rankings highlight the fact that being a huge, densely populated city offers no guarantee that entrepreneurs will thrive. Instead, the opposite seems to be the case, with smaller cities able to offer more supportive environments and fewer barriers to budding innovators.
Tamworth, New South Wales, Ranked Lowest
Tamworth is seen as a cultural city associated with country music and the arts. If you’ve got a bit of creative flair, you might fit right in here.
On the flip side, entrepreneurs looking to launch the next big thing might struggle, with the City of Light identified as the city with the lowest entrepreneurial spirit.
Ultimately our findings highlight the varied entrepreneurial landscapes across Australia, which are influenced by regional economic conditions, local government support, and community engagement.
Full data:
| Rank | City | Survival Rate Year 1 Rank | Survival Rate Year 3 Rank | Founders per 100K People Rank | Search volume Rank | Small Business Density Rank | 1-Year Growth Rate Rank | 3-Year Growth rate rank | Total Score (out of 10) |
| 1 | Shepparton Vic | 15 | 15 | 36 | 15 | 8 | 2 | 3 | 6.95 |
| 2 | Ballarat Vic | 15 | 15 | 24 | 15 | 24 | 4 | 2 | 6.69 |
| 3 | Geelong Vic | 15 | 15 | 18 | 15 | 27 | 10 | 1 | 6.58 |
| 4 | Busselton WA | 7 | 7 | 49 | 15 | 7 | 15 | 23 | 6.28 |
| 5 | Devonport Tas | 1 | 1 | 28 | 15 | 33 | 32 | 22 | 6.1 |
| 6 | Kalgoorlie WA | 7 | 7 | 45 | 15 | 39 | 3 | 20 | 5.9 |
| 7 | Traralgon Vic | 15 | 15 | 30 | 15 | 6 | 41 | 5 | 5.88 |
| 8 | Port Macquarie NSW | 35 | 24 | 13 | 15 | 10 | 9 | 6 | 5.64 |
| 9 | Adelaide SA | 4 | 4 | 12 | 2 | 48 | 33 | 37 | 5.61 |
| 10 | Launceston Tas | 1 | 1 | 25 | 11 | 42 | 39 | 34 | 5.56 |
| 11 | Canberra ACT | 50 | 50 | 8 | 7 | 20 | 8 | 4 | 5.47 |
| 12 | Gold Coast Qld | 24 | 39 | 6 | 6 | 13 | 21 | 16 | 5.38 |
| 13 | Sunshine Coast Qld | 24 | 39 | 9 | 11 | 25 | 12 | 11 | 5.35 |
| 14 | Mildura Vic | 15 | 15 | 31 | 15 | 9 | 1 | 46 | 5.33 |
| 15 | Darwin NT | 13 | 13 | 22 | 15 | 41 | 22 | 28 | 5.27 |
| 16 | Perth WA | 7 | 7 | 11 | 5 | 50 | 23 | 41 | 5.26 |
| 17 | Ballina NSW | 35 | 24 | 2 | 15 | 2 | 14 | 26 | 5.15 |
| 18 | Gladstone Qld | 24 | 39 | 23 | 15 | 15 | 11 | 9 | 5.12 |
| 19 | Albany WA | 7 | 7 | 43 | 15 | 23 | 31 | 33 | 5.06 |
| 20 | Hobart Tas | 1 | 1 | 14 | 15 | 46 | 30 | 47 | 5.05 |
| 21 | Warragul Vic | 15 | 15 | 21 | 15 | 3 | 34 | 38 | 5.04 |
| 22 | Bendigo Vic | 15 | 15 | 35 | 15 | 30 | 37 | 10 | 4.98 |
| 23 | Coffs Harbour NSW | 35 | 24 | 4 | 15 | 4 | 18 | 25 | 4.97 |
| 24 | Hervey Bay Qld | 24 | 39 | 39 | 15 | 17 | 5 | 8 | 4.96 |
| 25 | Geraldton WA | 7 | 7 | 49 | 15 | 21 | 38 | 32 | 4.81 |
| 26 | Orange NSW | 35 | 24 | 17 | 15 | 28 | 16 | 7 | 4.77 |
| 27 | Mackay Qld | 24 | 39 | 34 | 15 | 12 | 7 | 19 | 4.71 |
| 28 | Dubbo NSW | 35 | 24 | 20 | 15 | 11 | 26 | 13 | 4.68 |
| 29 | Newcastle NSW | 35 | 24 | 15 | 8 | 44 | 13 | 12 | 4.62 |
| 30 | Albury NSW | 35 | 24 | 10 | 15 | 22 | 25 | 18 | 4.38 |
| 31 | Bundaberg Qld | 24 | 39 | 41 | 15 | 26 | 6 | 15 | 4.34 |
| 32 | Victor Harbor SA | 4 | 4 | 46 | 15 | 37 | 40 | 45 | 4.25 |
| 33 | Mount Gambier SA | 4 | 4 | 37 | 15 | 32 | 47 | 49 | 4.21 |
| 34 | Bathurst NSW | 35 | 24 | 32 | 15 | 19 | 17 | 21 | 4.15 |
| 35 | Wollongong NSW | 35 | 24 | 26 | 11 | 43 | 20 | 14 | 4.1 |
| 36 | Cairns Qld | 24 | 39 | 16 | 11 | 29 | 24 | 31 | 3.93 |
| 37 | Bowral NSW | 35 | 24 | 3 | 15 | 1 | 43 | 35 | 3.93 |
| 38 | Alice Springs NT | 13 | 13 | 19 | 15 | 35 | 49 | 48 | 3.9 |
| 39 | Sydney NSW | 35 | 24 | 1 | 1 | 47 | 27 | 27 | 3.88 |
| 40 | Melbourne Vic | 15 | 15 | 5 | 3 | 49 | 48 | 43 | 3.83 |
| 41 | Toowoomba Qld | 24 | 39 | 47 | 15 | 14 | 19 | 24 | 3.83 |
| 42 | Wagga Wagga NSW | 35 | 24 | 27 | 15 | 18 | 42 | 17 | 3.69 |
| 43 | Central Coast NSW | 35 | 24 | 29 | 8 | 36 | 28 | 29 | 3.45 |
| 44 | Brisbane Qld | 24 | 39 | 7 | 4 | 38 | 29 | 40 | 3.43 |
| 45 | Warrnambool Vic | 15 | 15 | 33 | 15 | 34 | 44 | 42 | 3.41 |
| 46 | Bunbury WA | 7 | 7 | 44 | 15 | 45 | 50 | 50 | 3.13 |
| 47 | Nowra NSW | 35 | 24 | 48 | 15 | 5 | 45 | 36 | 2.81 |
| 48 | Rockhampton Qld | 24 | 39 | 40 | 15 | 31 | 35 | 30 | 2.74 |
| 49 | Townsville Qld | 24 | 39 | 42 | 8 | 40 | 36 | 39 | 2.44 |
| 50 | Tamworth NSW | 35 | 24 | 38 | 15 | 16 | 46 | 44 | 2.33 |
Top 10 Cities in Australia Generating the Most Founders
Despite Sydney scoring poorly overall as an entrepreneurial city, it came out on top for generating the most founders in Australia.
Sydney can boast an impressive 1,389 founders per 100,000 people, with this figure indicative of the fact that Sydney has a strong infrastructure and access to capital.
New South Wales in general, is clearly home to individuals with entrepreneurial spirit, with the top 3 Australian cities with the most founders all being from here. This is an interesting stat when you consider that Tamworth was the lowest-ranked Australian city for entrepreneurship in general.
Ballina, a coastal gem, has 1,369 founders and comes in second place, showcasing the general trend of regional entrepreneurship.
Even Bowral, stuck out in the Southern Highlands with its modest population of less than 11,000, can claim 1,175 founders, thereby highlighting its vibrant local economy and strong community support for startups. This also goes along with the general trend that smaller cities offer more fertile ground for entrepreneurs.
What’s more, Bowral’s blend of historic charm and modern amenities provides an ideal environment for entrepreneurial ventures to thrive, reflecting the diverse landscape of innovation across South Wales.
Top 10 Small Business Hubs
Bowral might be more picturesque than metropolitan but it leads the way when it comes to small business hubs, thanks to homing 53,445 small businesses per 100,000 people.
Its close links with Sydney, from which it sits just a 90-minute drive away, surely help, while its thriving local economy and scenic beauty add to its appeal.
Ballina in New South Wales came second for small business hubs, and currently has 31,385 small businesses per 100,000 people. Its entrepreneurial success is bolstered by its relaxed lifestyle and tourism industry, with entrepreneurs able to chill on one of its many beaches during downtime.
Warragul, VIC, meanwhile, ranks third, with 25,086 small businesses per 100,000 people. Warragul benefits from its dairy farming and other diverse enterprises.
And while all three towns might not catch the eye like the bustling Sydney’s and Melbourne’s of the world, they demonstrate that key to Australia’s vibrant small business sector is a strong local economy and tight communities.
| City | Number of Small Businesses per 100,000 People |
| Bowral NSW | 53,445 |
| Ballina NSW | 31,386 |
| Warragul Vic | 25,086 |
| Coffs Harbour NSW | 21,436 |
| Nowra NSW | 20,227 |
| Traralgon Vic | 18,643 |
| Busselton WA | 17,193 |
| Shepparton Vic | 16,274 |
| Mildura Vic | 15,299 |
| Port Macquarie NSW | 15,160 |
Top 5 Cities Obsessed with Starting a Business
By examining the search volume for “how to start a business,” our study reveals the top 5 cities most obsessed with starting a business.
| Ranking | City |
| 1 | Sydney NSW |
| 2 | Adelaide SA |
| 3 | Melbourne Vic |
| 4 | Brisbane Qld |
| 5 | Perth WA |
Methodology
To determine the best entrepreneurial cities in Australia, we compiled a list of the 50 most popular cities and ranked them based on seven key metrics.
Each factor was ranked on a scale of 50, and the following weights were then applied:
- Business survival rate in year 1: 0.15
- Business survival rate in year 3: 0.20
- Average monthly search volume for “how to start a business”: 0.05
- Number of founders per 100,000 people: 0.10
- The growth rate of small businesses within 1 year: 0.15
- The growth rate of small businesses within 3 years: 0.20
- Number of small businesses per 100,000 people: 0.15
Based on these weights, we calculated the final overall score for each city to identify the top entrepreneurial hubs in Australia.
Data for this ranking were collected as of June 1st, 2024, from the Australian Bureau of Statistics, Semrush, and LinkedIn.
This article is general information only and does not provide advice to address your personal circumstances. To make an informed decision you should contact an appropriately qualified professional.