QUEENSLAND small businesses have not only weathered the storms of the COVID-19 pandemic but have emerged stronger than ever, according to a recent report by the Queensland Small Business Commissioner. The “Queensland Small Businesses Outlook – Beyond the Pandemic” report reveals that profitability among Queensland’s small businesses has surged by an impressive 42 per cent since 2019. This remarkable growth outpaces the rise in wages/salary (22 per cent) and total expenses (21 per cent).
The report paints a vivid picture of resilience and growth across various industries in Queensland. Over the last four years, small businesses in sectors such as agriculture, healthcare, and real estate have experienced above-average survival rates and substantial growth. This highlights the robustness of Queensland’s small business community.
One key finding is the impact of the pandemic on household spending. While it had a severe but short-lived impact, the overall growth in household spending in March 2023 was 28.3 per cent higher compared to March 2019, before the pandemic struck. Notable increases in consumer spending were observed in hotels and food service (50 per cent), recreation/culture (46 per cent), and clothing/footwear (41 per cent). Government support played a pivotal role in this success story.
The Queensland Government provided over $2.5bn to support small businesses during the pandemic, including grants, financial counselling, and red-tape reduction. This support allowed many small businesses to recover quickly from the initial dip in household spending in 2020, returning to profit and job creation. Queensland stands out in terms of sector growth, with small businesses increasing by 9.5 per cent since mid-2020, surpassing the national average of 7 per cent. Regions like Ipswich, Logan, the Sunshine Coast, and Central Queensland have witnessed the most substantial small business growth.
Minister for Employment and Small Business, Di Farmer, highlighted the importance of this support, stating: “This report should provide Queensland innovators, creatives, and entrepreneurs with the confidence they need to dream, develop, and launch their businesses.”
Queensland Small Business Commissioner, Dominique Lamb, emphasised the unique strength of Queensland small businesses, contributing $119bn to the state’s economy. She stated, “The challenge now for small businesses across Queensland is to manage their costs, profit margin, and wage ratios, while keeping a close focus on metrics and business performance.”