SURVEY SHOWS RECORD BUSINESS PAIN FOR LOCAL SMALL BUSINESSES

While the latest Business NSW survey shows small businesses across the state are being squeezed by rising costs, worker shortages and compliance pressures, the Minns Labor Government has axed a vital support service for small businesses.

In 2024–25, a record 7,643 businesses in NSW were forced into insolvency – a 26.2% increase in just one year.

The latest NSW Business Conditions Report shows it’s become harder than ever to run a business with:

• 97% of businesses struggling to lift productivity
• Rising costs identified by 65% of respondents
• 42% pointing to a lack of skilled labour
• 41% saying regulatory demands were holding them back.

Member for Manly James Griffin MP said the Minns Labor Government’s decision to axe Business Connect could be the final nail in the coffin for many already struggling local small businesses.

“Business Connect provided free, practical advice to small businesses navigating compliance, planning and financial management,” said Mr Griffin. “It was one of the few lifelines available, and from 1 October it will be gone, with nothing to replace it. Small businesses are at the heart of the Manly Community. They employ locals, sponsor community organisations and sports teams, improve social connection, and help shape the unique character of our neighbourhoods. 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.”

Since it was introduced by the Coalition Government in 2017, Business Connect has assisted more than 60,000 small businesses and helped create more than 40,000 new jobs.

The NSW Treasury commissioned an independent review into the program and found for every $1 spent, it brought in $1.50 in benefits back to NSW and led to fewer businesses failing.

“Many local businesses in the Manly community are doing it extremely tough at the moment, bearing the brunt of increased rates, rising costs, and a slump in customer activity and sales over winter,” said Mr Griffin. “Yet despite this, the Minns Labor Government has doubled down on cutting a program that provided real, tangible support to small businesses struggling to keep their head above water. Instead of helping these businesses, the Minns Labor Government has stripped away a proven and vital service.”

A Liberals and Nationals Government will restore Business Connect and get practical advice back on the ground.

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02 9976 2773 | https://nswliberal.org.au/james-griffin