Bush business boom as customers shop local

But new figures show they are bouncing back with industry experts even saying that in several regions small businesses fared better during COVID-19 than their counterparts in metro centres.

Figures from the Small Business Commissioner show there were 275,000 small businesses based in regional NSW, accounting for 33 per cent of all NSW small businesses.

This is an increase of more than 60,000 since 2017.

One of those small business operators is Rosie Siemer from Broken Hill who opened retail clothing store Sitting Bull in 2018 - at the peak of a horrific drought.

"There was a distinct need in the market for good quality country clothing for young people," Mrs Siemer said.

"And when there is a gap in the market that is not filled then people go online or go out of town and that hurts everyone's business no matter what your business is.

"We are all in this together and we need to work collaboratively to keep people in town."

In 2020, during the pandemic, Mrs Siemer was instrumental in rallying local businesses' to urge people to shop local launching the Facebook page "Our Hill is not Broken".

Last year in October she opened a second business Raven Treasure Broken Hill, a women's fashion and accessories boutique to once again fill a gap.

She said social media had helped businesses in rural and regional NSW urge customers to shop local.

"For us social media brought people through the doors, we have them a sample of what they can see and they came in," she said.

"In the last few years, and maybe this has been driven by COVID-19, but we have seen a distinct change in people's mindset that they want to shop local.

"They want to keep business and economy in their own areas and they want to make a conscious decision to do that.

"We need to support home-grown businesses that put back into our communities."

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Small Business Commissioner Chris Lamont said post COVID-19 more small business operators were now reviewing their operations more frequently and changing business and operating models.

"We have seen a real focus on improving marketing and establishing an online presence," Mr Lamont said.

"Many small businesses have also tapped into the preference of many consumers to support local businesses."

Mr Lamont said many small businesses in some regions fared better during COVID-19 than their counterparts in metro centres.

He said more small businesses had seen the value, and in some cases the necessity, of doing more of their business online.

The Commission's November 2022 Small Business Survey found that one in five respondents are currently conducting operations and/or selling products or services on a digital platform or an online marketplace.

He said many small businesses entered agreements with their bank and/or their landlord to defer loan repayments and rent during COVID-19 and now they were faced with repaying these deferrals on top of current expenses and payment requirements.

"The most frequently raised challenge I hear is a lack of skilled labour. This existed before COVID-19 but while some supply issues are improving, the lack of skilled labour remains an acute challenge particularly in regional areas of the state," he said.