Consumers in New England North West are being urged to support local small businesses this festive season, with fresh data revealing that many enterprises are facing mounting financial pressure.
According to Business NSW’s latest Business Conditions Survey, customers are spending less, seeking greater discounts, and delaying invoice payments compared to this time last year, placing strain on small businesses already grappling with rising costs.
“Our local businesses are under real pressure,” said Business NSW New England North West (NENW) Regional Director Stephanie Cameron. “With inflation back at 3.8% and an interest rate cut off the table, our members are telling us that shoppers are still tightening their belts.”
The survey, which captured responses from 700 businesses across NSW, identifies the top three cost pressures in the NENW region as insurance, energy, and government taxes and charges.
Workers’ compensation also remains a critical concern, with half of the region’s businesses warning they would be forced to cut staff if premiums rise by 36 per cent over three years.
Growing price sensitivity among consumers is adding further challenges. The survey found that:
- 32 per cent of businesses report customers are taking longer to pay invoices.
- 30 per cent are seeing more negotiations on price.
- 24 per cent say buyers are opting for cheaper alternatives.
“These trends show budgets are tightening and confidence is dropping,” Ms Cameron said. “For many smaller operators, delayed payments and constant discounting are hitting cash flow hard.”
She stressed the broader role small businesses play in community life.
“Small businesses are the ones that keep our main streets humming, sponsor the local footy team and give our young people their first job. Now, more than ever, our local community need to support and buy local to help keep these businesses afloat.”
The data paints a subdued picture of consumer behaviour in the lead-up to Christmas, with 42 per cent of businesses reporting customers are buying less frequently, and 37 per cent noting a drop in average order size. Just 18 per cent of businesses are seeing more frequent purchases, and only 12 per cent have recorded larger transactions.
Despite the current challenges, some optimism remains. Business confidence in the region remains in negative territory this quarter at -60.4, but expectations have improved for the next quarter, rising to -20.8 – a 40-point lift.
“This 40-point increase in business confidence means regional business believe there will be continued investment and an increase in jobs on the back of investments in the region, for example, Baiada, University of New England, Livestock Exchange Saleyards, Tamworth Jockey Club new stables, the new Essential Energy Training Academy and more to happen,” Ms Cameron said.
“As a former business owner, I know how important business growth is to fulfil our economic potential. When Regional NSW goes well, so goes the rest of NSW and the nation,” she said.
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