December update from the Commissioner

The big picture for business this year was the economy bouncing back after COVID, but when you look closer, it’s been another challenging 12 months for many small businesses in NSW.

While the economic impacts of COVID are slowly fading and consumer spending has bounced back from lockdowns, floods have devastated regional areas again and businesses have new concerns, including rising costs and interest rates, and supply shortages. Our factsheets aim to assist businesses address some of these key issues.

The challenging conditions are also reflected in low levels of small business confidence, as measured by our monthly survey and a weak outlook for revenue and profit growth, at least in the short term. The recovery in confidence in late 2021 faded away throughout this year.

They are also reflected in continued strong demand for the Commission’s mediation service. Even though the COVID leasing laws and mandatory rent relief ended early in the year, the demand for mediation of business disputes has remained at similar levels to 2021, indicating that many people, both retail tenants and landlords, still need support.

Sound and supportive government policy and legislation remain crucial to the health of our small business sector. We continue to advocate for change where it is needed, such as appropriate insolvency laws that recognise the needs of small business.

This time of year often brings extreme weather conditions and, while we hope to avoid another bad bushfire season and other extremes, every business should consider what they will do if disaster strikes. Use the Commission’s Get Ready for Disaster resources to prepare for disruption and get back to business sooner.

The resilience and optimism of small businesses continues to inspire me and my staff. Thousands of small businesses took valuable time away from running their business in November to attend some of the more than 500 events during NSW Small Business Month. Despite their immediate challenges, there was a strong appetite among business owners and operators to learn new skills and implement new ideas.

I hope that you are able to spend some quality time with friends and families over Christmas and New Year.

No matter what 2023 brings, the Commission will continue to be a strong advocate for small businesses.

Chris Lamont

NSW Small Business Commissioner