NSW is facing a shortfall of 85,000 digital workers by 2030. That’s why Business NSW has joined the NSW Digital Skills and Workforce Compact: to make sure SMEs are front and centre in the state’s plan to build a future-ready workforce.

David Borger, Executive Director of Business Western Sydney, recently signed the Compact’s 20% Alternative Pathways Pledge. 

It commits to ensuring that 20% of all entry-level digital hires come from non-university pathways by 2030. These include VET, micro-credentials, traineeships, bootcamps, and earn-while-you-learn programs.

Nigel Palmer, senior policy manager, skills and education, said it would would mean broader access to job-ready digital talent through more practical, inclusive, and affordable pathways.

Dr Palmer is also leading the Compact’s new SME Digital Capabilities Working Group to ensure the strategy reflects the challenges and priorities of smaller businesses.

Digital skills

BNSW research shows that digital capability is one of the biggest issues facing SMEs. It found 46% of small businesses and 68% of medium businesses reported encountering online scams. A further 34% of small businesses and 43% of medium businesses experienced cyber incidents.

Many businesses cited cost and perceived irrelevance as key barriers to strengthening their cybersecurity. Only 25% of small businesses have invested in system upgrades, compared to 52% of medium businesses.

Meanwhile, interest in AI is growing rapidly. Our March Business Conditions Survey reveals a steady rise in AI receptiveness – from 4.6 in 2023 to 6.7 in 2025 on a 10-point scale. Nearly one in four businesses now fully embrace AI to boost productivity and address skills shortages.

More information

To get involved click here. 

More about the Compact here.

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