Surge in new businesses opening in Tasmania despite coronavirus pandemic

Thousands of new businesses have been registered in Tasmania since March and signs of confidence are returning to the sector, but there are warnings tough times still lie ahead.

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SIGNS of confidence are returning to Tasmania’s small business community, but concerns remain over how the sector will fare once the “stimulus bubble” bursts.

New food and retail businesses are starting to emerge despite the challenging times and Australian business number (ABN) figures show Tasmania is on track to reach a record number of registrations this year.

“I’m not surprised to see businesses popping up. Even in the hardest times business will find a way,” Tasmanian Chamber of Commerce and Industry chief Michael Bailey said.

He said his organisation’s membership had surprisingly grown since March — bucking a forecast fall in members — and confidence levels were starting to bounce back.

“It is also pleasing that a lot of businesses are finding it better than they expected, but we have to remind them there’s a lot of stimulus money in the community at the moment.”

Tasmanian Chamber of Commerce and Industry CEO Michael Bailey. Picture: Zak Simmonds

Changes to JobKeeper come into effect on Monday, meaning businesses will only qualify if their turnover is down by 30 per cent and the wage subsidy will also be reduced.

In March 2021 it will end altogether, while the fortnightly JobSeeker unemployment benefit will also fall on Monday from $1110 to $810, affecting more than 34,000 Tasmanians.

“I think we’ll have a better idea of what is happening in March, when JobKeeper comes off completely,” Mr Bailey said.

Juan Maiz Casas said it was far from an ideal time to launch his high-end lifestyle brand, Etica, in Hobart, but it was a matter of now or never.

“Etica is an idea that’s been building for a couple of years. It’s not the best time to open, but in a way I had to,” he said.

When a former florist shop came up for lease in a beautiful heritage building on Macquarie St, he felt it was the perfect site to showcase his handmade Argentinian furniture and leather goods.

While the business is mostly online, with free delivery worldwide, he said it was important to have a walk-in store.

“The good thing about having a physical shop is that people get to see the things and that’s how it starts,” he said. “People know we are real.”

“Hobart will be a great location for it – once the border opens.”

Owner of Hobart furniture and leather goods store, Juan Maiz Casas concedes it is a crazy time to be opening. Picture: EDDIE SAFARIK

Mr Bailey said the future was bright for businesses that were resilient enough to open in the current climate.

“They’ve got business models that can cope with the toughest of times and they’re coming in open-eyed, which means they’ll have the opportunity to really grow when things improve,” he said.

Australian Business Register figures show more than 8000 new ABNs have been registered in Tasmania since March, meaning the state is on track to top last year’s record of nearly 13,000 ABNs. The Department of State Growth said some of the ABNs would relate to self-managed super funds.

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