
Why Is It So Hard to Run a Small Business Right Now?
Join the waitlist for The Australian Small Business Show Club by clicking here. Running a small business in Australia is harder right now than it has been in decades, and this episode explains why, so you know it isn’t just you. Hello and welcome to this week’s episode of The Australian Small Business Show. This week we’re talking about why it is so hard to run a small business in this country right now. When we recorded, the latest inflation figures had just come out and another interest rate rise looked likely. Small business is not a side note in the Australian economy. There are 2.7 million of us actively trading. We make up 90% of all businesses, employ more than 5 million people and contribute close to a third of GDP. (While researching, we also found there are around 15 different definitions of what a small business actually is.) Even so, it feels like small business is being ignored. The numbers on the other side tell the story. 14,000 companies entered insolvency in the 2026 financial year, and that doesn’t count the sole traders and family businesses that quietly closed their doors. Personal insolvencies are rising too, and many are business-related. That shows how business pressure eventually lands at home, especially for directors once PAYG instalments and super catch up with them. Research from MYOB and Xero found 65% of small businesses are worried about cash flow and 69% are worried about attracting new customers. COSBOA found 80% of owners are experiencing stress and anxiety, and in regional areas 77% report high levels of it. We talk about how worry stops people spending, which then hits other businesses. We also talk about how tight cash flow pushes owners into short-term decisions, like aggressive pricing, that hurt them later. The biggest point we want you to take away is that this isn’t about any one thing. It’s layered. Over the past three to four years there has been constant change to the Fair Work Act and the awards system. Employment costs are higher and it’s harder to engage contractors. Payday Super has arrived, which we actually support on its own merits. The credit card surcharge changes have been pushed back to 1 July 2027, but businesses still have to absorb the cost in the meantime. On top of that come the budget changes affecting trusts and negative gearing, and the new limits on borrowing inside self-managed super funds. Very little sits on the other side of the ledger. Even the $20,000 instant asset write-off is of limited use when nobody has spare cash to spend. This isn’t a doom and gloom episode. It’s us saying we get it, we feel it too, and you don’t have to carry it alone. We also share a family story about a grandfather who ran his own manufacturing business and spoke out against offshoring, and why it feels like history repeating. Next week we flip it around with five ways you can help your small business in this environment. Have you been asking yourself why everything in your business suddenly feels so much harder? This episode shows it’s the combined weight of many changes landing at once, and that thousands of other business owners are feeling exactly the same. Key Takeaways: Small business is a major part of the economy: 2.7 million businesses, 90% of all businesses, more than 5 million employees and close to a third of GDP. The pressure comes from many changes stacking up at once (IR reform, tax and super changes, inflation, interest rates), not from one single policy. Business stress doesn’t stay in the business. It flows into your personal finances, your director obligations and your home life. Tight cash flow can push you into short-term decisions, like aggressive discounting, that create bigger problems down the track. The credit card surcharge changes take effect from 1 July 2027, so it’s worth planning for them now rather than leaving it until next June. If you’re struggling, you’re far from alone. Around 80% of small business owners are reporting stress and anxiety. We want to hear from you: If you’re finding it tough right now, reach out to us on socials, even if you just want to vent. And if you’ve found a silver lining, please share that with us too. Connect with Us: If you're an Australian Small Business Owner, we'd love to connect with you on socials. You can give our Facebook Page a like here: https://www.facebook.com/theaustraliansmallbusinessshow Or follow us on Instagram here: https://www.instagram.com/aussmallbizshow/ Subscribe to The Australian Small Business Show newsletter by visiting our website here: https://www.theaustraliansmallbusinessshow.com.au/ Disclaimer: The information shared on The Australian Small Business Show is general in nature and does not constitute professional advice, legal or otherwise. We recommend consulting with your advisors on your specific circumstances.





