Victorian small businesses are hurting

The battle of small businesses to stay afloat across Victoria was confirmed with the release of the Victorian Regional Chamber Alliance’s (VRCA) Business Health Survey Report last week (October 10).

As a member, Committee for Echuca Moama chair Dr Catherine Lees said the survey collected data from the members of chambers across rural and regional Victoria.

‘‘The results of this survey clearly indicate the pressure that businesses in regional and rural Victoria are facing,’’ she said. ‘‘It is imperative that the Victorian Government find ways to make doing business more affordable and accessible.’’

The survey showed only 55 per cent of businesses were drawing a living wage.

‘‘Clearly, this is not sustainable,’’ Dr Lees said. ‘‘Small businesses are being crushed under operational costs, compliance management and taxes.’’

One of the respondents said ‘‘it is no longer viable to do business in Victoria’’, while another said ‘‘I’ve got 30 years’ experience in our industry, and this is the toughest it’s ever been and unfortunately only looks to be getting worse.’’’

The survey highlighted the frustrations of business owners around tax reform, red tape, insurance and WorkCover, utility costs, the cost to employ staff and the crippling competition from large corporation and international companies.

‘‘Respondents are sick of this government’s city-centric attitude,’’ Dr Lees said. ‘‘This report is a wake-up call. If we want thriving communities, we must ensure our small businesses are not just surviving, but flourishing. That starts with meaningful reform and genuine engagement from government.’’

Submissions were received from a variety of businesses across all sectors throughout the state. It’s hoped the results will help legislative bodies and relevant industry understand the unique challenges of doing business in rural and regional Victoria. 

The report was raised in Parliament last week by Member for Western Victoria Bev McArthur, calling on the government to respond in detail to the points made in the survey.

The report is viewable here.