WITH Small Business Month about to launch in October, a recent Business NSW survey shows small businesses across New South Wales are being squeezed by rising costs, worker shortages and compliance pressures.
Meanwhile, the state government has axed Business Connect, a vital support service for small businesses, on the eve of month-long celebrations.
The NSW Nationals’ Gurmesh Singh said the decision to axe Business Connect could be the last straw for many already struggling local small businesses.
“Business Connect provided free, practical advice to small businesses navigating compliance, planning and financial management,” Mr Singh said.
“It was one of the few lifelines available, and from 1 October it will be gone, with nothing to replace it.”
In 2024-25, a record 7643 businesses in New South Wales were forced into insolvency – a 26.2 per cent increase in just one year.
The latest NSW Business Conditions Report shows it’s become harder than ever to run a business with 97 per cent of businesses struggling to lift productivity; 65 per cent of respondents identified rising costs; 42 per cent pointed to a lack of skilled labour; and 41 per cent said regulatory demands were holding them back.
“Small businesses are the backbone of communities. They employ locals, sponsor local community organisations and sports teams, and create future opportunities for our kids and grandkids,” Mr Singh said.
“But local operators tell me they’re being crippled by rising costs and now, with the loss of Business Connect, they’ll be left completely on their own.”
