The Melbourne suburb launching the most businesses in Australia

An unexpected Melbourne suburb has been crowned the very best in Australia for new business growth with the number of companies being founded there doubling over the past five years.

Melbourne’s booming west has surged to the top as the nation’s new business powerhouse.

Melbourne’s booming west is making a claim to be the nation’s new business powerhouse, fuelled by population growth and rapid urban development.

Melton, located 36km west of Melbourne’s CBD, took out the crown as Australia’s top local government area for business growth, nearly doubling the number of businesses over the past five years.

The area saw a 87 per cent increase in the number of registered businesses, skyrocketing to 17,304 in 2024 from 9,276 in 2019.

Nearby Wyndham wasn’t far behind, recording an 81 per cent surge in business numbers over the same five year period, climbing to a total of 34,885.

This was followed by Casey and Hume in Melbourne’s southeast and northwest respectively both experiencing over 50 per cent growth since 2019.

Seven of the top ten areas nationwide were located in Victoria, including Whittlesea, Cardinia and Mitchell, all experiencing around 40 per cent in growth, according to the research by digital business card company Tapt using Australian Bureau of Statistics data.

Regional hotspots like the Surf Coast, Greater Geelong, and Moorabool are also making waves, each recording around 28 per cent growth.

The biggest surge in business size came from non-employing businesses, including sole traders, freelancers, and contractors, which soared in Victoria from 384,217 in 2019 to 483,514 in 2024.

This was followed by large corporations, which saw a 25 per cent growth in the past five years, now standing at a little over 1,400.

Tapt chief executive Elon Datt said outer-metro hotspots like Melton, Wyndham, Casey and Hume were “hitting a sweet spot” of population growth, new transport links and affordable commercial land to create ideal conditions for businesses to launch and thrive.

The sharp growth in non-employing microbusinesses was due to tough economic conditions and the desire for flexible working arrangements, Mr Datt said.

“As the cost of living continues to rise across Victoria, more people are starting side-hustles to supplement their income, with many successfully turning these ventures into full-time roles,” he said.

“The desire for greater flexibility is also playing a role, as Australians seek freedom from the traditional 9-to-5 and look to work on their own terms, from wherever suits them.

“That same entrepreneurial momentum is extending to regional centres like the Surf Coast, Greater Geelong, and Moorabool.

“The rise of remote work and improved infrastructure, such as the Geelong Ring Road, is bringing Melbourne within easier reach and making a more balanced lifestyle increasingly viable.”

The biggest growing industry in Victoria was health care and social assistance, increasing by 46 per cent from 2019 to 2024, which Mr Datt attributed to rising demand for healthcare services amid an ageing population and the Covid pandemic.

The biggest growing industry in Victoria was health care and social assistance.

Other high performers were administrative and support services, which grew by 35 per cent over the five years, as well as transport, postal and warehousing (44 per cent) and retail trade (28 per cent).

Construction remains steady, increasing 3 per cent annually, while information media and telecommunications and manufacturing is seeing just a 1 per cent increase year-on-year.

On the other end of the spectrum, the agriculture, forestry and fishing sector struggled to maintain growth, declining by 1 per cent annually, as the industry continues to grapple with challenges including climate change and labour shortages.

Wholesale trade declined 1 per cent over the past five years, reflecting the pressures of shifting global supply chains and the rise of e-commerce.

Originally published as The Melbourne suburb launching the most businesses in Australia