Opinion: Why small businesses will hurt a little more in 2023

Small businesses have experienced a proverbial kick in the guts in the past few years. A global pandemic, rising costs of living, skill shortages, and much, much more have seen Australia’s small business sector struggle under what feels like a never-ending cycle of challenge and recovery. And for some — maybe even most — 2023 will continue to bring challenges to their door (and back pockets).

The small business sector contributes a whopping 57% of Australia’s GDP,  creates more than 7 million jobs, and injects more than $430 billion into the Australian economy each year. Not surprisingly, the business exit rate in Australia began to rise from early 2022 and reached almost 4% as inflation and interest rates continued to rise.

This year’s unprecedented levels of inflation have had a significant effects on households, however, new research reveals that 72% of