Operating context
Challenging economic conditions are affecting business operating conditions and profitability, including for small businesses and family enterprises. Like all other states and territories, the impact of these challenges is evident in recent increases in business insolvencies in Queensland.
Key challenges facing the sector include:
- rising operating costs, particularly for insurance and energy, as well as those driven by supply chain issues, including as a result of severe weather events and geopolitical tensions and uncertainty
- cost of living pressures for consumers, impacting confidence and leading to reduced spending in a number of sectors
- cashflow and working capital pressures which can inhibit financial sustainability and innovation
- a continuing tight labour market, making it harder for small businesses to attract and retain skilled workers.
These economic challenges have been exacerbated by natural disasters like flooding, as well as the risk posed by cyber threats increasing the complexity of the operating environment, requiring business to respond, pivot and show even greater levels of resilience. For family businesses, similar challenges are faced with additional considerations of succession planning and navigating the complexities of family dynamics and governance.
While these pressures have direct impacts, we know Queensland's small and family business owners are resilient and innovative. They are active in leveraging the competitive and comparative advantages of Queensland and their entrepreneurial spirit and expertise has and will continue to overcome temporary setbacks and challenges.
Our small and family business community are some of the hardest working Queenslanders around. They deserve to be supported by a government agenda that sees the potential of the sector, supports its ambition, and is willing to take action to support stronger growth and productivity for this vitally important sector.
Case study: Natural disaster support
Natural disaster assistance helping small businesses recover
The Australian and Queensland Governments are jointly delivering targeted disaster assistance packages under the Disaster Recovery Funding Arrangements to support recovery and build resilience in disaster-affected regions across the state.
These packages will help small businesses across Far North Queensland, areas impacted by ex-Tropical Cyclone Alfred, and parts of Western Queensland recover from recent flooding, restore operations, retain staff, and prepare for future disasters. The initiatives are designed to meet the local needs of each region and ensure practical, on-the-ground support where it's needed most.
