Enterprise Plus CEO Jonathan McIlroy, right, opening a small business hub. Photo: Enterprise Plus.
Regional and rural communities will be hit hard by the loss of a vital support program for small businesses, which had its funding cut in this year’s NSW Budget.
The Minns Government is being warned of a horrifying surge in insolvencies if it persists with ending the program.
Business Connect has been supporting small businesses with its free advisory service for eight years, but it will close at the end of the month when funding runs dry.
The government is replacing it with Service NSW’s Business Concierge, but the CEO of one of the Business Connect providers, Jonathan McIlroy, at not-for-profit Enterprise Plus, says this will be just a triage service and only provide scripted responses and online resources.
“It would be like speaking to a triage nurse when said nurse has nowhere to send you,” he said.
“It might work for very simple needs, but small businesses need multifaceted and tailored solutions to survive in this difficult economy.”
Enterprise Plus is the largest Business Connect provider in NSW and has been supporting the small business community for close to 35 years. It has hubs in Queanbeyan, Wagga Wagga and Albury.
Mr McIlroy said regional and rural communities relied almost 100 per cent on small businesses, which have been struggling since the Minns Government came to power, with insolvencies rising by 80 per cent.
He said Business Connect had a strong track record preventing insolvencies and is horrified at what the figures will be for small businesses in a year’s time without the current service.
“Fires, floods, drought, COVID, cost of living … all of these have worked against small businesses for years, with no respite or end in sight,” Mr McIlroy said.
“Many haven’t had a single chance to come up for air for the last five to 10 years. But with guidance, we know they can and will get through and come back stronger.
“$10 million a year allows us to support, on average, 10,000 businesses – and this is not run-of-the-mill consulting. This is expert, qualified advice that is proven to work.”
Business Connect has supported 60,000 businesses over the past eight years. It provided eight hours of free, independent, and tailored business advice per year to small businesses, covering everything from strategy and planning to marketing, sales, HR advice, and the digital economy, or anything else small businesses might need assistance with.
Mr McIlroy said businesses got the support they needed when they needed it.
“The last independent analysis on Business Connect confirmed we are a net positive program,” he said.
“We should be seen as an investment rather than a cost.”
Providers were pushing to have the program reinstated and have launched a website called My Business My Voice to give small businesses the opportunity to tell their stories about how Business Connect has helped them and to have their say on the government’s decision.
Business owners say the program has been a ‘game changer’ and ‘lifeline’.
Mr McIlroy said $10 million a year helped create and/or keep on average 6000 people in work every year through the supported businesses.
“This doesn’t even consider keeping families’ roofs over their heads or the positive effect businesses like these have on our national economy,” he said
Mr McIlroy said governments of all persuasions had funded an independent business advisory service of some kind for more than 30 years until now.
The Liberal and National Opposition is also calling for the government to reverse its decision.
