The Popular Business among Australian Immigrants
Immigrants dominate some industries in Australia:
- 65% of taxi or Uber drivers are immigrants;
- 54% of dry cleaning and laundry businesses are owned by immigrants;
- 53% of gas or petrol stations are immigrant-owned.
The most popular business choice are restaurants, fruit market, fish shop and milk bar. These types of business are attracting lower-educated immigrants with capital.
The next popular choice of businesses for immigrant are retail, construction, education, health, social services, and hospitality. These types of business are attracting most skilled immigrants.
One of distinctive business operated by immigrants is international activities like exporting or launch of overseas facilities. In recent 5 years, Australian immigrants have increasingly exported Australian agricultural produce or education to overseas which made of 17% of GDP of Australia.
Although some exporting business was not wearing the hat of exporting such as DaiGou (take purchase order directly from and mail to overseas consumer), such activities still help sell Australian product to overseas. In the financial year 2018-2019, just DaiGou for baby formula milk powder has turned to a billion-dollar industry in Australia.
The Strength of Immigrant in Business
Hunger for success
Immigrants have the ability to see more opportunities that is not available in the country they came from. When the opportunities are suitable for their skills, immigrants can turn the desire of self-preservation and hunger for success into running a business.
Migrating is a choice and conscious pursuit of change. Once migrating get into a new country, they will be forced to accept the change to new life. The continuity of change makes immigrant more open-minded and adaptable to new opportunities.
While immigrant understands the system of the country they were born, they also learn to understand the new system of Australia. When comparing the two systems, immigrants have a deeper understanding the social systems than locals. They most likely can come up with some new ideas to solve old problems.
Migrating to a new country is a great Risk-taking adventure. They left everything behind and not fear to lose much in the new country. This make most of the immigrants have the trait to take risk by starting a new life with a business.
Is Immigrant more Vulnerable in Business?
More than 60% of Australian small business were closed within three years. Immigrant businesses are not an exception to this pain. According to CGU Migrant Small Business Report, 65% of businesses operated by immigrant were closed down or forced to close down within their first two years.
Generally speaking, Yes, the immigrant is more vulnerable in business compared to their Australian local conterparts.
The vulnerability of Immigrant in business
- 70% of immigrant entrepreneurs do not have a wealth business experience back to their original country, but they are inspired by the possibility of financial success to run a small business.
- Many immigrants take on a business because it is the best opportunity to be employed. The difficulty in finding a job has always been a major issue for immigrants.
- Many Immigrants only focus on taking opportunity rather than choose suitable business according to their skills and business knowledge.
- Some immigrant business owners are unfamiliar with local business labour market and lack of understanding of the regulatory environment. They often got themselves into trouble with the local or federal government, such as work safety or tax.
- Much immigrant business relies solely on family support and unaware the business support from local and federal government such as small business grant, woman business project.
- Many immigrant businesses have no-long term plan or exit plan for the business, which means when the owner is sick or unable to work, the business will be discontinued.
- Many immigrant businesses have difficulty in acquiring a loan and experiencing more financially fragility.