Melbourne’s Small Business Backbone: The Opportunity in Community and Awards

Nearly three-quarters of all businesses in the City of Melbourne, 74 per cent, are small, according to data from the council. These businesses employ roughly 80,000 people and account for 14 per cent of local jobs. That figure, drawn from council sources, underlines the sheer scale of entrepreneurial activity across the municipality, from hidden design studios in North Melbourne to CBD barbershops that have become neighbourhood institutions.

Recognition through the Lord Mayor’s Small Business Awards

The city’s annual Lord Mayor’s Small Business Awards have, since 2005, honoured more than 620 owners who have served their community for a decade or more. In the most recent round, North Melbourne design studio Seesaw took out the Small Business of the Year title. Meanwhile, NGarrgu Djerring, a First Nations café, received the inaugural Small Social Enterprise Award. These awards are one clear signal that the council sees small business not just as an economic engine but as a social anchor.

Local government sources note that the program is designed to spotlight resilience and longevity. With a decade-long service requirement, the awards tend to favour owners who have navigated economic shifts, online competition and, in recent years, pandemic disruptions while retaining a physical presence in the city.

Three businesses with deep roots

Several iconic small businesses have been highlighted in recent council spotlights. McCloud Shoes, which has operated on the same site since 1949, is now run by the third generation of the Parkinson family. In the CBD, Mr Barber has built a loyal following as a traditional barbershop. All Star Comics, a comic bookstore also in the central business district, remains a destination for collectors and casual readers alike.

These three businesses, spanning retail, grooming and pop culture, illustrate the range of independent ventures that survive and thrive in a high-rent environment. None rely on a single formula; each has adapted its offering to its customer base over decades.

The social enterprise opportunity

Beyond the traditional shopfront, social enterprises are carving out their own space. All Things Equal, an inclusive café in Balaclava, was spotlighted by community advocates for creating meaningful employment for people with disabilities. The café’s model deliberately builds an inclusive workplace, demonstrating that small businesses can serve both a commercial and a social purpose.

The emergence of the Small Social Enterprise Award within the Lord Mayor’s program suggests the council is actively recognising this dual mission. For prospective owners, the opportunity lies in a market that increasingly values purpose alongside product.

The City of Melbourne’s data, 74 per cent of businesses are small, employing thousands, provides the quantitative backdrop. The qualitative evidence sits in places like McCloud Shoes, All Star Comics and All Things Equal: businesses that are small in scale but outsized in community impact. For anyone considering a new venture, the message from the awards and the numbers is clear: small remains not only viable but vital.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.