High Insolvency rates indicative of tough conditions for small business

Recent insolvency data underscores the challenges faced by small businesses in NSW, with 297 businesses entering external administration or having a controller appointed in the first three weeks of April.  

Our Momentum Survey has consistently shown that small businesses are apprehensive about the future, especially with the slower-than-expected easing of inflation and the prospect of higher interest rates for longer, said Small Business Commissioner Chris Lamont.  

While insolvency statistics do not offer a complete view of the challenges faced by small businesses, the elevated insolvency figures are consistent with other data showing high number of small business exits.  

“I am particularly concerned about smaller employers who appear to be struggling more than other firms at this time and encourage them to contact my office so that we can try and assist those facing extreme pressures,” said Chris Lamont.  

The Commission's services, including mediation and advocacy support, have remained in high demand following the pandemic with consistently high levels of debt and payment-related enquiries.  

For more information on how the NSW Small Business Commission can assist with mediation, advocacy, and other support services, please visit www.smallbusiness.nsw.gov.au.