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Download NSW Small Business Strategy 2023-26
Current as of Thursday, 02 March 2023.
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NSW Small Business Strategy 2023-26
What we will do
We have identified 35 important actions the NSW Government will take over the next
three years to support small business to start, grow and thrive. These actions build
on and complement progress and current activities. They fall under seven focus areas:
Focus Area 1
Keeping NSW as the home of small business
The growth of the small business sector despite the challenges over the last few years shows that we have many of the settings and actions in place that make NSW a great place for small business. To reach our target of 1 million small businesses by 2030 and ensure existing small businesses continue to grow, the NSW Government is dedicated to maintaining NSW as the Home of Small Business.
Government policy, regulation and programs need to be designed in collaboration with the sector to help understand the benefits and avoid unintended negative impacts for small business. The NSW Government also needs to better measure how effectively it is working with small business and encourage small business friendly practices from larger businesses. The NSW Government will also continue to digitise previous paperbased or in-person processes, making them less time-consuming and more convenient for small businesses. This will create a better environment for small business and ensure that NSW continues to be the Home of Small Business into the future.
| Actions we will take | How this will help small business |
|---|---|
| 1.1 No new taxes for small business. | Gives business certainty by maintaining a stable taxation system. |
| 1.2 Appoint a NSW Red Tape Commissioner, to deliver $1 billion reduction in red tape. | Ensure government agencies take a targeted approach to developing policies and initiatives that affect small businesses. |
| 1.3 Launch a 2 year blitz of regulation, where any new regulation will result in another piece of red tape removed. | Prevent further overall increases to red tape and regulation. |
| 1.4 Further reduce red tape by removing legacy requirements and introducing use of digital processes, supported by amendments to legislation in 2023. | Save time and reduce the costs of compliance. |
| 1.5 Require each Cluster to develop and adopt a Small Business Value Statement. | Ensure government agencies take a targeted approach to developing policies and initiatives that affect small businesses. |
| 1.6 Require NSW Government agencies to include small business friendly performance measures, including a red tape reduction figure, within their annual reports from 2022-23. | Greater accountability will drive more small business. More access to procurement, reduced regulation, increased participation. |
| 1.7 Require small business impact assessments for new policy, regulatory and major project proposals, piloted in the Transport and Planning and Environment Clusters from July 2023, and extended to all government agencies*. | Greater focus on small business needs and perspectives within government, including better engagement. |
| 1.8 Increase engagement with small businesses and do more to reduce disruption from NSW Government major infrastructure programs, including through earlier notice and reducing disruption by conducting works outside of business hours. | Improve engagement and minimise service and cost impacts on small businesses from major infrastructure projects – create interim measures to support the business. |
*For example, this will include impact assessments of major NSW Government infrastructure projects, how we have engaged with small business and what we are doing to reduce those impacts.
Focus Area 2
Skilling business to start, grow and thrive
To ensure NSW remains the home of small business, small business owners need the skills and settings to take advantage of emerging opportunities to start and grow their business, as well as adapt and respond to changing economic environments and customer needs.
We will give small businesses greater access to quick and self-paced training resources that enable them to upskill in core business and finance skills like workforce and continuity planning, as well as digital, web and cybersecurity skills. We will also significantly expand the support we provide for start-ups, including subsidising expert advice under a new Start + Scale My Business program, and expanding support through our state-wide network of Business Connect advisors.
Small businesses are also facing difficulty in finding skilled workers. We will continue investing in job-ready training, as well as explore other avenues for encouraging skilled workers to participate in the NSW workforce, to ensure that small businesses are not limited by the availability of workers.
| Actions we will take | How this will help small business |
|---|---|
| 2.1 In consultation with businesses and peak groups, ensure TAFE and Department of Education micro credentials are targeted to give small businesses the latest skills and knowledge. |
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| 2.2 Introduce a new four year Start + Scale My Business program, providing $1,000 for up to 10.000 micro and small businesses for professional advice to help grow and expand their business. |
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| 2.3 Increase Business Connect’s capacity to provide more support and specialised services such as procurement specialists, focus on business resilience, sustainability and financial literacy. |
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| 2.4 Hold an annual Skills Summit with the small business sector during Small Business Month. |
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| 2.5 Continue engagement with the Federal Government for further and permanent extensions to working hours allowed under pension eligibility criteria. |
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| 2.6 Commit to further ongoing Automatic Mutual Recognition reform through national forums to support greater competition and innovation among small businesses. |
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| 2.7 Continue engagement with the Federal Government on addressing skills shortages via targeted migration policy. |
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Focus Area 3
Building resilience
Small business in both metro and regional areas has shown strong adaptability to survive, even in the face of bushfires, floods, exotic diseases impacting livestock and a global pandemic. The NSW Government will continue to stand by the sector in times of crisis and help small business be proactive in preparing for disasters, to reduce risk and be more resilient to future disruptions.
Underinsurance leaves businesses more vulnerable to risks and less able to bounce back from a disruption. While the NSW Government does not regulate the insurance market on its own, we will take steps to reduce some of the barriers to affordable insurance.
When facing challenges it is important that small business owners and staff can access services that support mental health and wellbeing, including in the workplace. We will continue to promote and improve our mental health programs for small businesses.
The NSW Government is also supporting small business to benefit from the economic opportunities from the goal of reaching net zero emissions by 2050, and to prepare and adapt for our changing climate. We will provide more resources to support small businesses to respond and thrive in the face of climate change.
| Actions we will take | How this will help small business |
|---|---|
| 3.1 Appoint a Supply Chain Commissioner to deliver efficiencies and remove blockages. |
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| 3.2 Investigate and work with the insurance industry on challenges in accessing appropriate and affordable insurance for all sectors and geographic locations, and develop a database on insurance coverage by location. |
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| 3.3 Target year-on-year increases in small business participation in mental health programs and resources developed specifically for small business owners. |
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| 3.4 Deliver an energy reporting and climate change adaptation guide for NSW small business by end of 2023. |
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| 3.5 Investigate a new landlord and tenant green energy initiative to co-fund new green infrastructure (e.g. smart meters, solar, batteries, insulation and electric vehicle charging) in commercial premises. |
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Focus Area 4
Connecting with customers
Small business owners want to spend more time developing and growing their business. The NSW Government can help by creating more local and global opportunities for both metro and regional small business. The Service NSW for Business function can help link small businesses to potential customers. Over the next four years, digital enhancements will continue to build on these services to support small business owners in interacting with customers and meeting their business goals.
Our Act Global program will create opportunities for small businesses to access international markets and customers. These connections will support small businesses to sell goods and services to new customers and markets overseas, and promote goods and services produced in NSW on the world stage.
| Actions we will take | How this will help small business |
|---|---|
| 4.1 Make Seniors Card concessions easier and more attractive to implement and access. |
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| 4.2 Launch the Act Global small business program by the end of 2023 to help small businesses sell goods and services to customers overseas. |
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| 4.3 Over the next four years, consult on and roll out a series of digital enhancements that help small businesses better connect with customers and government, such as linking customers with small businesses, and making it easier to apply for and renew licenses. |
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Focus Area 5
Easier access to services
Information and support should be relevant, accessible, affordable, and provided in the form that helps small businesses most, regardless of their size or sector.
The NSW Government will make sure that small businesses can access services whether by directly speaking to someone, using interactive tools and resources, or through traditional print. It will also help local councils improve their support for small business, which means small businesses spend less time on paperwork and more time running their business.
By doing this, we can help small businesses be more productive and encourage new owners into the sector.
| Actions we will take | How this will help small business |
|---|---|
| 5.1 Establish a digitalised information and resources hub, bringing together information and resources relevant to small business. |
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| 5.2 Further increase access to mediation by reducing the cost of dispute resolution services supported by the NSW Small Business Commissioner, and expanding the types of businesses eligible. |
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| 5.3 Engage local government to support small business more effectively, for example by promoting actions that reduce red tape and improve local business conditions*. |
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* For example, this could include a new scheme that recognises and encourages local councils that increase local economic development through settings that help small businesses
Focus Area 6
Increasing diversity and participation
The NSW Government wants everyone to have the opportunity to start and run a successful small business if they so choose. The data shows that more action is needed to support potential and existing small business owners who are women, Aboriginal and Torres Strait Islander, from Culturally and Linguistically Diverse backgrounds or people with a disability.
Over the next four years, we will improve opportunities for these groups by supporting better access to finance and increasing commercial opportunities and appropriate support. This will increase participation and growth in the small business sector, and also ensure that it reflects the diversity of the broader community that it serves.
The below actions reaffirm the Government’s commitment to the NSW Implementation Plan on Closing the Gap, and particularly Priority Reform 5: Employment, business growth and economic prosperity. The NSW Government recognises the importance of growing the Aboriginal small business sector and the contribution it makes to the economic prosperity of Aboriginal communities. To support this, the Aboriginal Procurement Policy will be reviewed over 2022-23 to support increased Aboriginal economic participation and offer more opportunities to supply to Government.
| Actions we will take | How this will help small business |
|---|---|
| 6.1 By the end of 2023, identify, agree and implement more actions to tackle key barriers for women, Aboriginal and multicultural communities and people with disability becoming small business owners or employees*. |
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* For example, this will include partnering with the Commonwealth to improve access to childcare, engaging the Aboriginal business sector on increasing market share, working with the multicultural business community to boost opportunities and ensuring business start-up training and resources are accessible for people with disability
Focus Area 7
Boosting opportunities to contract with NSW Government
Since 2017, the NSW Government has taken important steps to improve the way we buy products and services from small business. But we will do more to make sure we connect with small business to understand the goods and services the sector can provide, and make it easier to offer services to government.
When doing business with government, we will make it easier to understand our contract, and pay very quickly after we receive an invoice. More chances for small business to supply should mean more opportunities for small businesses to develop their capabilities and grow.
| Actions we will take | How this will help small business |
|---|---|
| 7.1 By the end of 2023, 90% of all NSW Government procurement will only require small businesses to gain required insurances when awarded a contract, rather than to submit a tender (e.g. public liability and professional indemnity). |
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| 7.2 Increase the threshold for direct procurement with small businesses (only requiring one quote) from $150,000 to $250,000 by mid-2023. |
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| 7.3 Enable small businesses to pre-qualify as suppliers to the NSW Government through a single form, by mid-2023. |
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| 7.4 Increase NSW Government expenditure through procurement with small businesses by 23% (around $1 billion) by 2027. |
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| 7.5 Offer simple contracts for all whole of Government prequalification schemes by the end of 2023, and roll out new simple contracts for key goods and service programs by the end of 2024. |
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| 7.6 Increase the threshold for Small and Medium Enterprise and Local Participation Plans for contracts from $3 million to $7.5 million. |
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| 7.7 Engage with larger businesses to promote small business-friendly practices for industry, including developing a private sector procurement template agreement to support faster payment times to small businesses. |
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| 7.8 Hold an ongoing annual Small Business Month and a biennial state-wide small business purchaser and supplier conference, including for regional businesses. |
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Case study: Female tech entrepreneur
Steffi from Burwood developed and launched her app in November 2021. The app incorporates cultural tourism, community engagement and commerce into a modern-day treasure hunt that highlights the culture of Sydney suburbs and communities.
Steffi attended Business Connect workshops on business planning and digital marketing, and has received support on contracts, accounting, marketing & PR, working with freelancers, networking and building partnerships; funding opportunities and planning to scale.
She also won a scholarship to join Investment NSW’s Female Founders Startup Program. Her next move is seeking partnerships with more councils who are looking to attract visitors, and improve engagement with local communities and businesses.