Canberra’s businesses are the lifeblood of the nation’s capital. Photo: Michelle Kroll.
If you think what keeps Canberra ticking is Parliament, public service or policy, think again.
Canberra Business Chamber CEO Greg Harford says the real engine humming beneath the nation’s capital is its local businesses.
From the café owner opening before dawn to the tech startup exporting ideas across the globe, Greg says businesses are powering capital life — employing locals, investing in growth and helping the city thrive.
“People think of Canberra as a government town, but two-thirds of the jobs are in the private sector,” he says.
“Ultimately, it’s the private sector that employs people, pays taxes, and delivers the goods and services Canberrans need.
“They’re running our restaurants, providing us with phone and internet services, and staging our entertainment. Life would be pretty bleak without them.”
It’s become something of a mantra at Canberra Business Chamber, as the city’s peak body for business works to correct a narrative on the local business ecosystem — one that often reduces it to boardrooms and big corporates.
“In reality, most businesses are tiny, mum and dad businesses,” Greg says.
According to a Canberra Business Chamber report, more than half of Canberra’s businesses are sole traders with no employees.
Only 3 per cent of ACT businesses employ more than 20 people, meaning almost all Canberra businesses are considered small to medium enterprises (SMEs).
The vast majority — 91 per cent — of businesses turn over less than $2 million in revenue.
“They are working hard to deliver their goods and services, and most aren’t making a massive amount of money doing so,” Greg says. “There seems to be a prevailing sentiment that businesses have deep pockets. The reality is that most operate on slim margins, and a small change can tip that into a loss.”
ACT businesses are navigating the highest insolvency pressures in the country.
In the last quarter alone, 58 per cent of Canberra Business Chamber members reported a failure to hit performance targets, and only half are expected to make a profit in the coming quarter.
“Those are big numbers and not sustainable,” Greg points out.
Greg adds that between rising operational costs and a dip in government and consumer spending, Canberra’s business community was feeling “clobbered”.
“Despite this, Canberra’s small businesses continue to strive to keep our city moving. Supporting them means supporting the future of the capital,” he says.
“We urge our policymakers to bear this in mind when looking at policy settings and regulations.”
For more information, contact the Canberra Business Chamber.
