Cafe owner Adam Thomson of Brisbane’s Dovecote Social shares why Australia is currently the worst place in the world to start a business

A hardworking cafe owner has named Australia one of the worst places in the world to start a business.

Adam Thomson, 50, and his wife Rejoice run the Dovetail Social Cafe in Brisbane’s affluent suburb of Highgate Hill.

The couple, who opened the business more than 10 years ago, work 60 hours a week and have taken a pay cut to keep the business open.

Mr Thomson told Daily Mail Australia the country ranks ‘at the top’ as the worst place in the world to start a business ‘due to the enormous costs’.

“I have a lot of family members living in Dubai, which is the exact opposite of here,” he said.

‘There wages are lower and you don’t pay taxes like we do.’

Mr Thomson admitted the couple had been invited several times to set up their own business in the wealthy Gulf city.

Dubai has one of the lowest corporate tax rates in the world, after the United Arab Emirates introduced a standard tax rate of 9 percent in June 2023.

Cafe owner Adam Thomson, 50 (pictured right) said Australia was ‘one of the worst places in the world to start a business’ ‘because of the huge costs’ (pictured left is Mr Thomson’s wife, Rejoice)

For comparison, in Australia the basic rate for companies with an annual turnover of $50 million is 25 percent.

According to figures from Brisbane accounting firm Muro Accountants, Australians spend an average of between $3,000 and $5,000 to start their own small business.

It is telling that, according to figures from the ABS, approximately 60 percent of small businesses cease to exist within the first three years.

Mr Thomson, who lived in France as a bachelor for a year, said he would move abroad in a heartbeat if circumstances were different.

He said it is difficult for his family to pack their bags and move abroad as his daughter is just entering high school.

According to Mr Thomson, this is the worst time to start a business in Australia due to the high cost of living.

Inflation hit a whopping 7.8 per cent in December 2022 and the RBA has since implemented 13 rate hikes, pushing small businesses to the brink.

“I speak to a lot of cafe owners and everyone says the same thing: everyone is trying to get through this difficult period,” Mr Thomson said.

He urged the government to step in and help small businesses, otherwise they risk losing quality cafes and restaurants in inner cities and suburbs.

Mr Thomson urged the government to step in and help small businesses or they risk losing quality cafes and restaurants (pictured Dovetail Social Cafe in Norman Park, Brisbane)

But Mr Thomson also warned Australians considering starting their own business not to underestimate the amount of work involved.

“Running a business is physically demanding because unexpected things always happen,” he says.

“If things aren’t perfect, you’ll get bad reviews on Google because people don’t hold back.”

He also said that many young entrepreneurs don’t take the time to explain to their staff how they want their company and brand to be represented.

He said it is important to create the right work culture so that employees present themselves in a good way.

Mr Thomson said while it costs a lot of money to run the cafe, he loves living and working in Australia and is grateful for his loyal customers.

Mr Thomson also issued a sobering warning to Australians considering starting their own business: don’t underestimate the amount of work involved (pictured are shoppers in Sydney’s Pitt Street Mall).

Leading Australian business analysis firm CreditorWatch predicts that one in 13 hospitality businesses will go bust in the next year.

Patrick Coghlan, CEO of CreditorWatch, warned that conditions for hospitality businesses will get worse before they get better.

“The outlook for the hospitality industry is unlikely to improve until we see an increase in consumer spending,” Mr Coghlan said in a statement.

“That’s not going to happen until the effects of one or two rate cuts start to filter through to households. We don’t expect that to be felt until at least the second half of next year.”