With young Aussies leading start-up surge, CommBank throws weight behind next-gen founders

Young Australians are leading the country’s start-up boom, with new data from CommBank revealing Millennials and Gen Z together account for 62% of all new business openings in the past year.

The figures, released today to coincide with CommBank’s sponsorship of Australian Fashion Council (AFC) Australian Fashion Week, highlight the growing impact of younger generations on the national economy – particularly across retail trade, personal and business services, and construction.

Millennials alone made up 49% of new business account openings in the 12 months to 31 March 2025, while Gen Z represented 13%. In comparison, Gen X made up 27% and Baby Boomers just 10%.

Retail trade is the second most popular sector for new Gen Z-owned businesses, following construction. Millennials favoured property and business services before moving into construction and retail.

CommBank’s Household Spending Insights Index also showed growth in household goods spending, particularly online marketplaces, department stores, clothing and furniture – categories often targeted by younger founders.

Rebecca Warren, CommBank’s executive general manager for small business banking, said the findings underline the resilience and ambition of younger entrepreneurs, even in the face of economic uncertainty.

“Gen Z and Millennials account for 72% of all new businesses in retail trade, showing younger Australians are willing to pursue their passion despite the challenging environment this sector has faced and continues to tackle,” she said.

“Australian small businesses have dealt with many challenges over the last few years, and their resilience has never been more evident than in the way they’ve been navigating the challenging market, the impacts of the election, tariffs and changes to rates.”

The research comes as CommBank throws its support behind the fashion industry, serving as a major sponsor of AFC Australian Fashion Week. Over 30 designers will showcase their collections during the event, with CommBank presenting the Frontier and First Nations shows, including collections from Liandra, Ngali, and Joseph & James.

Kellie Hush, CEO of AFC Australian Fashion Week, said: “We are thrilled to have the Commonwealth Bank’s incredible support in 2025. CBA understands how important it is to nurture small and medium businesses in the early stages of growth.

“The fashion industry is also a major employer of women in Australia, with 77% of our industry being women. The figure makes fashion one of the few professional industries dominated by women, providing opportunity for them to flourish and finesse their specialisations.”

While the age breakdown of new business creation has remained steady since the pandemic, CommBank predicts Gen Z’s share will continue to grow as more of the cohort reach working age and other groups shift focus to scaling their ventures.