Entrepreneurs aged under 35 owned the majority of new businesses registered over 12 months

YOUNG Australians are increasingly driving the economy, with a report showing a huge rise in businesses run by gen Y.

Good Price Pharmacy founder Anthony Yap in the warehouse complex that started off a chain reaction for him - he now has 40 warehouse-type stores across the country, annual turnover of more than $200 million and 750 employees.

Gen Y entrepreneurs are reshaping the Australian economy and showing older business generations how to do it.

Last year there were 15,300 new companies registered in Australia and the majority were owned by entrepreneurs aged 25 to 34, a Bankwest business trends report has found.

There was an 8.5 per cent jump in the number of gen Y business ventures, compared to a 3.8 per cent rise in those started by investors aged 55-64.

All up there are 194,800 businesses owned by the 25-34 age group and some have outfits valued in the tens of millions of dollars.

They are people like Brisbane man Anthony Yap who in 2001, aged just 23, used a $50,000 deposit to start Good Price Pharmacy Warehouse.

The company now has an annual turnover of more than $200 million, 40 outlets nationally, and earned its owner, a former manager of a Terry White chemist, the accolade of Brisbane Young Entrepreneur of the Year in 2012 and 2013.

Bankers are starting to notice the young age of some of some of their best customers.

“Given what we know about the nation’s ageing population, it’s extremely encouraging to see such an entrepreneurial spirit among young Australian men and women,’’ said Sinead Taylor, Bankwest’s executive general manager of business.

“There’s every likelihood this may in part be inspired by the success of the generations before them.’’

The push by young business brains was identified in an analysis of Australian Bureau of Statistics figures on company registrations between February 2013 and February 2014.

On Monday news.com.au reported Baby Boomers were moving out of business with company sale brokers reporting 66 per cent of outfits put on the market in the first quarter were there because the owner was retiring.

“Retirement has become the major reason given by sellers for many businesses being put on the market so perhaps we are seeing the start of the long predicted transition of the Baby Boomer generation,” said a report by the Australian Institute of Business Brokers.

The rush of gen Y business nous was strongest in the construction sector where 2,280 more young people were running businesses, healthcare and social services (2,900 more), and information, media and telecommunications (2,350 more).

In particular, there was a 35.8 per cent increase (3,000 more workers) in the number of transport, postal and warehousing businesses run by workers aged 25-34 over the past year.

Originally published as Entrepreneurs aged under 35 owned the majority of new businesses registered over 12 months