SMEs gaining traction in WA: Bankwest

Small to medium businesses in Western Australia are growing faster than anywhere else in the nation, according to a new report prepared by Bankwest.

According to the Bankwest Business Trends Report, the number of people running their own business in WA increased by 4.2 per cent over the 12 months to February, the strongest level of growth in nearly three years.

Workers running an SME made up 12.3 per cent of the workforce in the year to February, the report said.

Across Australia, the number of people running a business increased by 3.3 per cent over the same period, to make up 11.5 per cent of the workforce.

Bankwest business chief executive Ian Corfield said the first green shoots of recovery were becoming apparent for small to medium enterprise in WA.

"These figures paint a promising picture for SMEs across WA which is great to see as they've recently experienced tough trading conditions," Mr Corfield said.

But the figures indicated over a five-year average, the number of people running SMEs in WA dropped by 4.3 per cent, compared to a national increase of 3.6 per cent.

"This could be attributed to tough trading conditions for WA small businesses during and post the GFC," Mr Corfield said.

"SMEs in WA have also had to contend with skill shortages and sluggish activity outside the mining sector."

The report showed the highest number of people running a business in WA was in the construction industry, which made up 26 per cent of the state's SMEs.

SMEs within agriculture, forestry and fishing came in at 13 per cent, and professional, scientific and technical services made up 10 per cent.

Across Australia, the number of people working for themselves grew faster than overall employment growth of 3 per cent.