Sole trader turnover has been found at its worst in two years following the latest report by Hnry Sole Trader Pulse.

The nationwide survey of self-employed people in Australia, which included consultants, freelancers, contract tradies and healthcare workers, reported revenue decline has outweighed growth (37%) for the first time since the pandemic. This bucks a two-year trend where sole traders have consistently seen their turnover improve, rather than worsen.

“With 50,000 new sole traders expected to enter the sector this year, this group is an essential subsection of our workforce that signals the broader health of the economy. Our data shows us they’re doing it tough and feeling the lasting impact of inflation and back-to-back interest rate rises,” Hnry Australia managing director Karan Anand says.

“The good news is that as economic pressures promise to ease, overall sole trader optimism, whilst modest, is on the rise, with 35% feeling positive about the health of the economy in six months, a jump from 23% in October 2023, and the highest since March 2022.”

Not all sole traders are bearing the brunt equally. Understandably those who are new to sole trading are struggling to find their feet in a tough economic climate, with over half (52%) of sole trader businesses under two years old reporting falling revenue, in contrast to 30% of those aged 3-10 years, and 39% aged over 11 years.

Some industries are also faring worse than others – less than half (46%) of freelance creatives including designers, photographers and marketing consultants, feel positive about their financial security. This comes despite the government’s multi-million dollar investment into the creative sector last year, with many businesses continuing to tighten the purse strings and take creative work in-house that would have previously been outsourced.