How to become an entrepreneur in Australia in 7 easy steps
If you believe Instagram and TikTok, these days, everyone and their dog is an entrepreneur. Open social media, or your even your average news app, and you’ll find a dozen ‘gurus’ promising you the key to financial freedom working eight seconds a week. Or influencers selling their own carefully developed, definitely-not-drop-shipped merch. And that’s not even getting to the guy selling made-up currency.
For those who are attracted to the idea of being their own boss, escaping the rat race of traditional employment, passionately pursuing a new or improved idea or just doing something their own way, it can be a bit of a minefield. There is some good news though. The definition of entrepreneurship hasn’t changed. And there are thousands of Aussies like you pursuing it every year.
According to some of the latest stats from government and other sources:
According to the ABS, Australia’s business landscape is both vibrant and volatile:
As of mid-2025, there are 2,729,648 actively trading businesses in the economy.
In 2024–25 alone, 437,150 new businesses entered the market (a 16.4% entry rate), while 370,500 exited (13.9% exit rate)--a net gain of 66,650.
That said, running your own enterprise is no guaranteed path to success:
Many people assume entrepreneurship always pays more than being an employee, especially in trade, personal services or care work, but that depends heavily on your model, margin and management.
While tech, financing and lean business models have made it easier to start, the challenges of scaling, cash flow, marketing and competition remain steep.
According to earlier analyses, the survival rate for new sole proprietors over four years is estimated around 41.5%.
In this article, we’ll break down exactly what it means to be an entrepreneur. We’ll get in to what entrepreneur life is really like, the pros and cons, and the diverse range of pathways to success. By the end, you’ll have a good idea of whether entrepreneur life is for you.
What is an entrepreneur?
The dictionary definition of ‘entrepreneur’ is someone who sets up a business or businesses, taking on risks with the aim of making a profit. Sounds like… a business owner, right? Well, they’re sometimes similar, but there’s a few key differences.
Being an entrepreneur means taking on more long-term risk (with the aim of a lot more reward!). It means taking on a project or starting a business from scratch.
Entrepreneurs usually have either completely new ideas, are trying to disrupt a market, or are trying to do something critical in a new way. Business owners, on the other hand, play it a bit safer. They use more proven business models, strategies, and existing products/services.
Entrepreneurs are also more likely to go it alone (although they may have employees or contractors), at least at the start. Business owners, on the other hand, may start a business as a partnership, or buy an existing business.
Pros and cons of entrepreneurship
Entrepreneurship can be an exciting and rewarding pursuit, but it also comes with its unique set of challenges. Here are some of the key pros and cons.
Pros
Autonomy and control: entrepreneurs have the freedom to make decisions and steer their business in the direction they choose. This autonomy allows for creativity and innovation in business strategies and products.
Financial rewards: successful entrepreneurship can lead to significant financial gains. The potential to earn more than in a typical salaried job is a strong incentive for many.
Personal fulfillment: starting and growing a business can be deeply satisfying. Entrepreneurs often feel a strong sense of achievement in creating something from scratch and seeing it succeed.
Flexibility: entrepreneurs often have the ability to set their own schedules, which can allow for a better work-life balance compared to traditional employment.
Impact: owning a business gives one the opportunity to impact their community and the industry they are in by introducing new products or services and creating jobs.
Speed: advances in digital technology and platforms, funding and finance pathways and lean business models allow a budding entrepreneur easier methods of setting up and starting their businesses relatively quickly.
Cons
Risk: entrepreneurship involves significant risk. Financial loss, business failure, and instability are real concerns that can affect not just the entrepreneur but also their employees and families.
Stress and workload: the responsibility of managing all aspects of a business can lead to high stress and long hours. Work-life balance can become skewed, especially in the early stages of the business.
Uncertainty and instability: entrepreneurs must deal with uncertainty regarding income, business growth, market stability, and more. This can lead to a lack of job security that many find uncomfortable.
Financial commitment: starting and maintaining a business often requires substantial capital investment. Accessing funds can be challenging, and personal assets are frequently used as collateral.
Isolation: running a business can be lonely, especially if you are doing it alone. Unlike in a company setting, you might not have colleagues to share challenges and successes with daily.
Entrepreneurship demands a mix of passion, resilience, and adaptability. It offers substantial rewards but also significant challenges, making it important for anyone considering this path to weigh these factors carefully.
How to become an entrepreneur in Australia
So, you’ve got a great idea, a spark of ambition and the dream of being your own boss? Nice one. Becoming an entrepreneur in Australia is about turning that idea into something real, profitable and sustainable. Here’s a simple step by step guide to help you get started.
1. Spark your idea that solves problems or fills gaps
Before anything else: come up with a business idea that solves a real problem or fills a gap. Chat with people, check social media, read forums, or run simple surveys.
You might already have an inkling of your business niche from a field you’re studying (e.g. marketing, business & management). Monarch’s courses in Business & Management or Marketing can help you sharpen that early idea.
You may be particularly interested in the:
2. Do your market & competitor homework
Who else is in your niche? What are they doing right (or badly)? Look at pricing, branding, where they promote themselves and how they talk to customers. Then, the goal after that is to find your own edge and stand out.
3. Build a lean business plan
You don’t need anything super complicated, but you do need clarity. Your plan should cover:
What you’re selling (product or service)
Who you’re selling to (your target market)
How much it costs vs how much you’ll charge
Marketing & sales strategies
Milestones you aim to hit
This becomes your “roadmap” for launch and scaling.
4: Register & structure your business
Time to make things official. If you're based in Australia, you’ll likely want to:
Decide on a business structure (sole trader, partnership, company)
Register your business name via ASIC
Open a dedicated business bank account
This gives you legal clarity, legitimacy and helps with credibility.
5. Master the finance & legal landscape
You’ll need to stay on top of tax obligations (including GST if you exceed the threshold), bookkeeping, and financial records. Many entrepreneurs also bring in an accountant or financial advisor to keep things tight.
6. Brand yourself + build online presence
Your branding is how people perceive you — your voice, visuals, messaging, and consistency. From there, launch a simple website, social media pages, and share valuable content. Your online presence is your public handshake.
You can also use skills from courses in Marketing, Digital Marketing or Social Media Marketing to help. (Monarch offers those types of online courses.)
7. Launch, iterate & scale
Go live (even if your first version is simple). Gather feedback, learn, tweak, iterate. Don’t wait for “perfect.”
Progress > perfection.
As your business grows, you’ll pivot, refine and perhaps hire others. Stay lean, stay curious.
Careers pathways to become an entrepreneur in Australia
Unlike some traditional careers, when it comes to entrepreneurship, there’s no one single pathway to becoming an entrepreneur in Australia, or pretty much anywhere really. But read the stories of enough successful entrepreneurs, and you’ll notice a few key themes.
One is that there are a few common starting points from which people break off and start to take an entrepreneurial approach.
1. School leaver
Some dive into entrepreneurship directly after completing their secondary education. This pathway often appeals to those who have a business idea or a passion they want to pursue immediately without formal higher education. School leavers typically rely on self-education, hands-on experience, and mentorship. They may start small, learning the ropes through trial and error, and gradually build their business acumen by actively engaging in all facets of running a business.
The up side of starting early is that you’ve got a lot of energy, passion, and (hopefully) not too many commitments. The down side is that, as mentioned, you might fail a few times before you’re successful.
2. Vocational
Vocational education and training involves specialised training at a TAFE or RTO (like Monarch!). This pathway equips aspiring entrepreneurs with practical skills and technical knowledge for entrepreneurship, from the legal side of business, to how to validate ideas, to getting funding from a variety of different sources.
It’s the ideal pathway for you if you want to learn some important skills and knowledge you can’t easily get through experience alone. It’s also great if you’re raring to go and don’t want to spend years at uni learning things you might not use, that’ll be outdated by the time you’re done. In other words, it’s a bit of a shortcut to the essentials.
Short courses for entrepreneurs
Speaking of vocational training, Monarch Institute offers a variety of courses purpose-built for budding innovators and self-starters.
The Certificate IV in Entrepreneurship and New Business is made up of ten units (topics), from basics like organising the finances, to how to market your brand new venture and get the money rolling in. It’s ideal if you’re ready to get started in on your own business, as you’ll start off learning the basics of planning. It’s also great if you’re still considering your options; potential career outcomes also include small business owner, product design business partner, and more.
The Diploma of Entrepreneurship and Innovation is an exclusive, nationally-recognised qualification. It’s made specifically for those with unique and innovative ideas who are ready to enter the start-up world, and just need those foundational skills to work with. The Diploma includes eleven units, covering topics from the practical idea validation methods used by real entrepreneurs, to planning projects to be as efficient as possible. Whilst most Diploma students already have the start of a business idea in mind, it’s also a great course if you’re considering options like product management, or moving on to uni.
Both courses are 100% online, and designed to fit around your work hours. The learning and assessments (no exams!) are created in consultation with industry experts, meaning they’re as practical and relevant as it gets. While you’re studying independently, there’s plenty of help and support available whenever you need it. You’ve got up to two years in total to complete your qualification, so you can take your time, although most learners finish a lot faster than that.
Meet your future trainers or get in touch with one of our friendly course consultants now for a no-obligation chat about the right study option for you.
3. Uni
University study provides a broader educational background and can include specific entrepreneurship or business-related degrees. This pathway helps potential entrepreneurs develop a solid foundation in business theory, economics, and management strategies. University programs often offer valuable resources like incubators, networking events, and access to mentors and investors. Students can take advantage of internships and collaborative projects that provide real-world business exposure and experience.
Many of the world’s most successful entrepreneurs – especially in tech – were either uni dropouts, or graduated from something pretty far removed from the business they ended up in. Their stories go to show that while this pathway has its benefits, going to uni isn’t mandatory for entrepreneurs.
4. Business experience as an employee
Gaining experience as an employee in a business setting can be an invaluable pathway to entrepreneurship. Working in a company allows individuals to understand inner workings of business operations, management, and strategic planning. Employees can observe and learn about the industry's challenges and opportunities firsthand, which is crucial for identifying business opportunities. This route also helps in building a professional network and understanding market dynamics before venturing out on their own.
5. Product/service/marketing experience as an employee
This pathway involves working specifically in roles that deal with products, services, or marketing within a company. It is particularly beneficial for those interested in launching a business that involves innovative product development, service delivery optimisations, or targeted marketing strategies. Such experience allows future entrepreneurs to gain insights into customer needs, industry trends, and effective marketing tactics. Employees in these areas develop critical skills in product design, customer engagement, and strategic marketing. These are all essential for a successful entrepreneurial venture.
Ever read semi-scandalous stories of former employees breaking away to start their own company, building or creating something that would never fly with the old bosses? It’s a more common story than you’d think, especially for product developers or marketing professionals in large organisations, where their technically good idea doesn’t fit in with the big corporate strategy.
Similar careers to entrepreneurship
Not sure if entrepreneurship is for you? If you like the sound of some of the above, but not all of it, there are some similar gigs out there that could get you a comparable income, work/life balance, and/or job satisfaction.
Several career paths share characteristics with entrepreneurship, such as autonomy, money, fulfillment, flexibility, and impact. Here are a few examples.
Freelancing: whether it’s in writing, graphic design, consulting, or coding, freelancing offers a high degree of autonomy and flexibility. Freelancers choose their projects and clients, set their own schedules, and work from locations they prefer. The financial rewards vary based on skill and market demand, but successful freelancers can earn significantly more than their employed counterparts.
Consulting: working as a consultant in areas like management, technology, or marketing can offer many of the benefits of entrepreneurship. Consultants often have control over which projects they take on and may run their own consulting businesses. This career offers high potential earnings and the flexibility to work with different clients on various issues, making a significant impact in their fields.
Real estate investing: real estate investors operate independently, make their own investment choices, and bear the risks and rewards of their decisions. This career requires a significant upfront financial investment but can lead to substantial returns. Real estate investing also offers flexibility in terms of when and where one works.
Creative professions (artist, writer, musician): creative professionals often enjoy autonomy in their work, choosing what to create and how to present it. Financial success can vary widely, but successful artists, writers, and musicians can achieve high earnings and significant personal fulfilment. They also have the potential to impact culture and society through their work.
Product improvement/invention: many people are presented by an idea that can improve on existing products and ideas, or even create a breakthrough. This might mean designing a product or service to be more efficient, or starting from scratch to design an idea that improves people’s lives across many different domains like cooking, fashion, nutrition. The potential for new or different ideas are endless!
Each of these careers offers a mix of independence, potential financial gain, and personal satisfaction, akin to what one might find in entrepreneurship, albeit often with different scales of investment and risk.
Of course, there’s also still small business ownership and management. Small business ownership and management serve as a practical alternative to entrepreneurship, offering similar benefits with potentially less risk. Owners usually enjoy a high degree of autonomy and control, except with some forms of business such as franchises. They’re always making crucial decisions that shape the business’s direction and operations. This role can lead to substantial financial rewards if the business is successful, paralleling the potential earnings of more traditional entrepreneurial ventures.
Furthermore, managing a small business provides personal fulfilment from directly influencing outcomes and seeing the tangible effects of one’s work. Small business owners often benefit from flexible schedules, allowing for a tailored work-life balance. Additionally, they can significantly impact their local communities and economies by providing goods, services, and employment, enhancing both personal and community growth.
Becoming an entrepreneur in Australia takes guts, patience and a willingness to learn.
But with the right foundation and the right credentials you can boost your chances significantly.
If you’re looking for structured learning, Monarch offers flexible online courses and diplomas across business, marketing, bookkeeping, and more, all designed for busy lives.
- Reviewed by Glenn Buesnel - May