The Entrepreneurs’ Organization (EO) has released its State of Australian Entrepreneurship Report – July 2025, offering a comprehensive look into the mindset, challenges, and opportunities facing Australia’s entrepreneurial community. Drawing insights from established business owners across the country, the report highlights both the resilience and the pressing needs of entrepreneurs navigating today’s complex business landscape.
Key Findings:
- Top Challenges:
- Talent shortages and market uncertainty were the most cited challenges (63% and 52% respectively).
- Other concerns included competition (34%), regulatory burdens (32%), and AI-related challenges (20%).
- Burnout is Prevalent:
- 77% of entrepreneurs reported experiencing burnout while building their businesses, underscoring the emotional toll of entrepreneurship.
- Optimism Remains High:
- Despite challenges, entrepreneurs remain optimistic, with an average optimism rating of 7.7/10 for the year ahead.
- 63% reported revenue growth over the past 12 months.
- Support Needs Identified:
- Entrepreneurs called for targeted mentorship, executive learning, access to capital, and regulatory reform.
- Peer support, retreats, and networking events were seen as critical to business success.
- EO’s Impact:
- Members rated EO’s contribution to their business growth at 7.2/10 on average, with nearly 1 in 5 giving a perfect score.
- 87% reported improved mental wellbeing since joining EO.
Quotes from EO Members:
“Talent shortages are a constant challenge—because the best companies need the best people. In a fast-growing country like Australia, with high levels of inward migration, attracting the right talent is critical. But doing so in times of economic uncertainty can make an already tough task even harder.”
— Costa Vasili, Founder of Ethnolink
Prosperity Advisers Founder and CEO Allan McKeown is a tenured member of EO Sydney and has acted as a mentor for EOs Accelerator program for early stage entrepreneurs . “As a business advisor and EO member, I see firsthand how peer support and structured learning environments can transform not just businesses, but the mindset of the entrepreneur. EO provides a space where leaders can grow together, challenge each other, and stay resilient in the face of uncertainty.”
Demographics:
- Respondents were all EO members generating over AUD $1.5 million in annual revenue.
- The majority were based in Victoria (50.6%), followed by NSW (21.5%), South Australia (12.7%), and Queensland (7.6%).