Australia is known for its rural setting. The Australian Outback is one of our world-recognised features, as the unique ecology of our country has given way to several of the most unique flora and fauna species in the world. Our expansive wildlife and open plains is part of our nation’s reputation as a free and wealthy country. Yet the wealth of our nation is not merely in the large tracts of open bushland that dominate Australia, but in the opportunity for smart business owners to thrive there.
Once you get an MBA, there is a new world of business opportunities awaiting you, but as any business student will know - part of any new business’s earliest difficulties comes in the form of competition. This is where the rural outback of Australia might come in handy for new business ventures. Not only is there a decided lack of competition, but Australia’s regional zones provide several other major benefits to new businesses.
Equal Income Growth
We’ve already touched briefly on skill shortages in regional communities. According to the September 2023 Skills Priority List Key Findings Report (SPL), the shortage of professionals in several industries had increased from 39% in 2022, to 28%.
This is concerning overall, but it does also provide an opportunity for new blood to move in and invigorate these industries. Not only is there a lack of overall competition, creating an advantageous supply/demand dynamic in the hands of smart business owners, but also provides a rich economic background.
Regional areas share a similar (not exactly the same but comparable) income and employment growth rate to suburbia and the capital. According to this report by the Grattan Institute income growth per person in the city only appears to be higher due to higher population rates. However comparatively, income growth is quite comparable in regional areas, and regional areas boast lower levels of income inequality.
More Opportunities for Work.
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Due to their lower population densities, regional areas create a very interesting dynamic in the local job market. Because their populations are so low, there are naturally fewer people available for work. The trade-off of this is that there are more comprehensive job opportunities.
The unique nature of the regional job market means that the low population densities adversely work in favour of those seeking work and looking to start a new business. There are a wider number of job opportunities in many industries in these regional areas, and the tight nature of the employee pool means that business owners have a diverse range of talent to hire from.
Housing Affordability
It’s no secret that in recent years Australia’s housing market has been in something of a crisis. Empty houses are going unused because landlords are hiking prices to unaffordable heights and the ongoing impact of inflation.
Things aren’t easy right now, and many Australians are feeling the pinch. However, although regional areas are, of course, still affected by the housing crisis - they appear to be less affected. The median rent in Metropolitan Melbourne was $395 in 2021, while in Regional Victoria, the median rent was $360. While $35 may not seem like much of a significant saving, it is important to remember that everything adds up, and for new business owners; the housing crisis’ diminished effect on regional areas may create more equitable property arrangements.
Technological Development
Regional areas are, by their very definition, not hugely technology-centric. While there is access to all the technological comforts of suburban living, these areas are still building up and being developed. This presents an interesting opportunity for workers and prospective employees.
Business ventures centred around the niche of rural connection to urban centres could be a massive hit. There are often people in rural communities with skills that are useful to those in urban ones, but the lack of domestic opportunity means that this wealth of talent isn’t being accessed.
The post-COVID world is one that ushered in a workplace revolution, proving once and for all that hybrid and remote work models not only could be adopted but should be. They have been proven time and again to benefit both employees and employers. Establishing a business that connects rural talent to urban businesses for urban or remote work could be a massive hit. Establishing a business that establishes tech solutions for employees and employers to engage in remote work and helps ease that transition would likely be a good bet.
Out in the Sticks
It is tempting to view Australia’s rural wonderland as somewhat of a no-go zone when it comes to business opportunities and start-up viability. However, any good business student with a good head on their shoulders can see the opportunity in the supposed shortcomings of rural life. Considering the sheer amount of rural territory in Australia, their combined populations and overall lack of other businesses means that they represent a wealth of opportunity for the broad-minded.
