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

A hard-working café owner has declared Australia as 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 the affluent suburb of Highgate Hill, in Brisbane. 

The couple, who opened the business more than 10 years ago, work 60-hour weeks and have taken a pay cut to keep their doors open. 

Mr Thomson told Daily Mail Australia the country is ‘up there’ as the worst place in the world to start a business ‘due to the sheer cost’. 

‘I have a lot of relatives who live in Dubai, and it’s the polar opposite to here,’ he said. 

‘You have lower wages over there and you don’t have tax like the way we do.’ 

Mr Thomson admitted that 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 9 per cent tax rate in June 2023. 

By comparison, the base rate of tax for companies in Australia with an annual turnover of $50million is 25 per cent. 

Australians spend on average between $3,000 to $5,000 to start their own small business, according to figures calculated by Brisbane based accounting firm Muro Accountants. 

But tellingly, about 60 per cent of small businesses stop trading in the first three years, according to figures released by the ABS. 

Mr Thomson, who spent a year living in France when he was a bachelor, said he would move overseas in a heartbeat if things were different. 

He said it’s difficult for his family to pack up and move overseas as his daughter has just started high school. 

Mr Thomson said now is the worst time to start a business in Australia due to our high cost of living. 

Inflation hit a massive 7.8 per cent in December 2022 and since, the RBA has presided over 13 interest rates rises which have put small businesses on the brink of collapse. 

‘I talk to a lot of café owners and everyone is saying 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 business or risk losing quality cafés and restaurants from inner-city and suburban areas. 

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

But Mr Thomson also gave a warning for Aussies considering starting their own business not to underestimate the amount of work involved. 

‘Running a business is physically demanding because you always have unexpected things happening,’ he said. 

‘If things aren’t perfect, you’ll be getting bad reviews on Google because people don’t hold back.’ 

He also said a lot of young business owners don’t take the time to explain to their staff how they want their company and their brand represented. 

He said creating the right workplace culture matters so that the employees present themselves properly. 

Mr Thomson said even though it costs a lot to run the café, he loves living and working in Australia, and is grateful for his loyal customers. 

Mr Thomson also gave a sober warning for Aussies considering starting their own business not to underestimate the amount of work involved (pictured are shoppers at Sydney’s Pitt Street Mall)

Leading Australian business analysis company CreditorWatch has forecast that one in 13 hospitality businesses will fail in the coming year.

CEO of CreditorWatch Patrick Coghlan warned conditions will get worse for businesses in the hospitality sector before they get better.

‘The outlook for hospitality businesses is not likely to improve until we see a lift in consumer spending,’ Mr Coghlan said in a statement.

‘That is not going to happen until the impacts of one or two rate cuts filter through to households. We don’t anticipate that being felt until at least the second half of next year.’