Business NSW is calling on consumers to back their local small business, with new figures revealing enterprises face a tough lead-up to Christmas.

The latest Business Conditions Survey reveals customers are spending less, pushing for discounts, and paying invoices more slowly than this time last year.

Business NSW CEO Daniel Hunter said the survey of 700 NSW businesses reveals “small to medium businesses are under real pressure”.

“With inflation back at 3.8% and an interest rate cut off the table, shoppers are still tightening their belts,” Mr Hunter said.

“Small businesses are the ones that keep the local high street humming, sponsor the local footy team and give our young people their first job.

“Now, more than ever, consumers need to support and buy local to help keep these businesses afloat.”

Almost half of businesses (42%) report customers are buying less often, while 37% say average order sizes have shrunk.

Only 18% are seeing more frequent purchases and just 12% report larger orders.

The survey also highlights growing price sensitivity across the economy:

• 32% say customers taking longer to pay invoices

• 30% are facing more price negotiations, and

• 24% report buyers switching to cheaper alternatives.

“These trends show budgets are tightening and confidence is dropping,” Mr Hunter said.

“For many smaller operators, delayed payments and constant discounting are hitting cash flow hard.”

Mr Hunter added that businesses are also bearing the brunt of the ongoing workers’ compensation impasse, with reform proposals still stalled in parliament.

“Our survey shows almost half plan to cut staff if a proposed 36% premium hike over three years goes ahead,” Mr Hunter said.

“Workers’ comp reform could finally ease these crippling costs.

“Our members are hopeful the state’s new Liberal leader, Kellie Sloane, will break the deadlock and deliver the urgent reforms businesses desperately need.”

About Business NSW

Formerly the NSW Business Chamber, Business NSW is the peak policy and advocacy body which has been representing businesses in NSW since 1826. We represent almost 50,000 businesses.

MEDIA CONTACT: BEN PIKE – 0429 993 822