Minns scraps small business support services

Small business owners struggling under a cost-of-living crisis will have a major support service scrapped this year.

Small business owners seeking advice on issues such as insolvency planning will be left with nothing after the Minns government cut the state’s only free business support service in last week’s budget.

The Business Connect program provides free advice and support for small businesses struggling with skyrocketing workers compensation premiums and insolvency rates.

The program was first introduced by the Coalition government in 2017 and helped tens of thousands of businesses navigate tough economic times.

Business leaders have called for the program to be reinstated after service providers were given three months notice to wind down their services. It is understood the eight providers across NSW delivering the service are expected to keep working until October.

Amjad Hussain at his Merrylands ice cream shop Al-Asr. He says the cost of living has meant he is now unable to make a profit. Picture: Tim Hunter.

The devastating cuts come during tough times for small businesses, in which 4235 businesses became insolvent in the first nine months of the 2024-25 financial year.

It also comes as businesses stare down the barrel of 36 per cent insurance premium increases over the next three years, after the Minns government failed to get its workers compensation reforms through parliament.

Business NSW chief executive Dan Hunter said the program must immediately be funded for the next financial year to prevent more businesses going to the wall.

“The Business Connect program is the only free service businesses can access to troubleshoot genuine problems and help grow their enterprise,” he said.

“There is no equivalent program to replace it after October 1. Businesses cannot be left out in the cold.”

Business NSW CEO Dan Hunter. Picture: NCA NewsWire / Monique Harmer

Mr Hunter said while the program “isn’t perfect” it provided an essential service to the most vulnerable businesses.

“Rather than cutting it, the NSW Government should be working to improve what is currently there,” he said.

A Business NSW analysis found that over the first three quarters of the last financial year 0.47 per cent of all businesses became insolvent, the highest rate since the 2008-09 financial crisis when the rate reached 0.5 per cent.

NSW Small Business Minister Janelle Saffin. Picture: NewsWire / Nikki Short

Opposition small business spokesman Tim James said the cuts were “shortsighted and deeply damaging”.

“The Minns Labor Government has turned its back on small businesses at a time when they are grappling with soaring costs, weak consumer confidence and economic uncertainty,” he said.

“These cuts will hurt small businesses. It’s not just a cut to advice, it’s a cut to confidence, innovation and jobs.”

Merrylands small business owner Amjad Hussein said it was a difficult time for such support services to be removed.

Running a dessert parlour in the Western suburbs he said like many business owners the cost of living crisis had made it impossible to make a profit.

“Especially in winter our business goes down, it is very hard to survive,” he said.

A spokesperson for Small Business Minister Janelle Saffin said the NSW Business Bureau, which offers Business Connect as a service, would still function as an overarching entity.

“Our government established the Service NSW Business Bureau, centralising government support and information for businesses in one place,” she said.

“The government is going to target its support to businesses in ways that work best. This includes avoiding duplicating services that are delivered by the private sector and which are easily available online.”

Originally published as Minns scraps small business support services