New research by the Council of Small Business Organisations Australia (COSBOA) reveals that the small-business community needs more support and clear information on coping with rising energy costs and navigating the transition to clearer energy sources.
The Small Steps. Bright Future research, funded by Energy Consumers Australia (ECA) as part of its grants process for consumer advocacy projects and research projects for the benefit of household and small-business energy consumers, confirms the fact that energy hardship and financial strain is hitting small business harder than COVID-19.
In the last year 34 per cent of small businesses have struggled to meet the demands of paying their energy bills – a figure two per cent higher than January 2022 when small businesses were feeling the full effects of COVID-19 response measures. One in five small businesses are struggling to pay their energy bills on time and 45 per cent are anxious about their ability to pay their energy bills in the future.
The research also reveals that are reticent about taking the steps required to move towards renewable energy and use their energy more efficiently, with the cost of transitioning to renewable energy is a deemed as being a major challenge by 63 per cent of small businesses.
“Small business is the backbone of the Australian economy, so it’s vital they are given support to deal with energy hardship and the challenges associated with energy transition,” Luke Achterstraat, CEO of COSBOA, said. “This research gives us the chance to get this right. If we can design the right support and services now, we can make a huge difference to how small business navigate this major change and challenge.
“Small business is getting smashed by rising energy costs, with the financial strain higher now than during the COVID shutdowns,” Achterstraat added. “Cost of living pressures and other compounding factors such as high interest rates are causing huge financial stress to the small business sector.”
The experience of small businesses accessing support is mixed, according to the report. Nearly a third of small businesses, 32 per cent, rated the quality and clarity of information as “good and easy to understand”. Two out of five small businesses, 41 per cent described the quality and clarity as “okay”. And over a quarter of respondents, 27 per cent, considered the quality and clarity to be “poor and confusing”.
“The time for action to help small business is now,” Achterstraat insisted. “It’s clear that how information and support are provided to small businesses – but also the quality and credibility of that information and support – can be improved. Getting these elements and the right settings in place now sets us up for a bright future.”
