Small businesses have been left to fend for themselves after the ACT budget "missed an opportunity" to support small businesses struggling with cost-of-living pressures, lack of staff and rampant cost increases, a peak business group has said.
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The Canberra Business Chamber acknowledged the need for funds going into housing, health and initiatives to help with the cost-of-living crisis, but said the budget fell short in supplying "meaningful support" to small businesses that needed help.
Despite putting forward a pre-budget submission with 14 recommendations, chair of the chamber Archie Tsirimokos said the government overlooked all "practical suggestions".
Ten of the 14 required little-to-no funding too, he said.
"Many businesses are currently facing pressing challenges such as soaring costs, waning consumer confidence, workforce shortages, and persistent supply chain pressures," he said.
"We think that this budget is a missed opportunity to address these critical issues head-on."
There are no major funding announcements for small businesses within the budget, however the government will spend $304,000 over the next two years to continue the Canberra Business Advice and Support Service.
Owner of Chapman cafe Mon Perry Geoff Banks said more attention being paid to small businesses in the budget would be welcomed, as well as funds.
"It definitely would be nice to be included in those conversations more, and equally," he said.
"Even for upgrading areas around our shops, I feel like we have a good spot here but other places with less appealing small shopping centres also naturally struggle more.
"We are lucky here for a number of reasons."
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Mr Banks said there is currently a lot of construction around his shopping centre, so people are coming in thanks to convenience.
Chapman is also a well-off part of Canberra, so locals are likely being impacted less by cost-of-living pressures too, he said.
But he, like everyone else, has to keep an eye on costs for products, and has had to increase sale prices to match.
"People are certainly spending less, and our cakes are selling a bit less too which I think is due to people having less luxury money to spend," he said.
"There have certainly been challenges, and I've had to make sure I am on top of things regarding raising costs, what I am purchasing and what I can afford to change without it being noticed by customers.
"But some things can't change, and I have certainly noticed a drop in customer numbers and spending."
The government will also deliver an inaugural small business expo to promote businesses in the ACT and surrounding region and offer networking opportunities. The funding will be fully offset by existing resources.
"It is important to recognise that the Canberra Business Advice and Support Service represents a baseline for [small-to-medium enterprise] support," he said.
"The ACT government should work to evolve the nature and scope of support, providing further pathways for local small and medium enterprises.
"In addition to these business advisory and support services, the government can introduce a support program to leverage the existing relationships small businesses have with their professional advisers.
"This is likely to reach greater numbers of small businesses in need of advice."
The ACT government has established a $60 million Affordable Housing Project Fund, which will include up to 22 affordable properties for at-risk and vulnerable women under a build-to-rent-to-buy initiative and about 160 affordable rental properties across three build-to-rent developments.
A business sentiment survey conducted by the chamber earlier in the year revealed a major issue for small businesses was finding and retaining staff and lack of skilled workers.
The chamber has acknowledged these funds have the potential to combat the lack of affordable housing in Canberra which is a barrier for staff attraction and retention.
Mr Tsirimokos said it is only part of the puzzle, however.
"We need the ACT government to commit to a long-term skills and workforce plan and work closely with the business community and the education and training sectors," he said.
Mr Tsirimokos said earlier in the year business sentiment had increased within the survey after the pandemic, but help was needed to get things back on track.
"Coming off the last year, business have started to raise their heads above the impacts of the pandemic," he said.
"It's a mixed bag of responses ... and there certainly are dark clouds still around with inflation and the cost of living."
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Sara Garrity
Sara writes about general Canberra news. She has previously worked as the journalist at Allhomes, writing about property news through a Canberra lens. You can email story ideas or tips to Sara at sgarrity@austcommunitymedia.com.au.
Sara writes about general Canberra news. She has previously worked as the journalist at Allhomes, writing about property news through a Canberra lens. You can email story ideas or tips to Sara at sgarrity@austcommunitymedia.com.au.
