The decline of entrepreneurship in New South Wales (NSW) is a cause for concern, with a recent report revealing a disturbing trend: 135,000 jobs that never existed. This alarming statistic highlights the potential economic impact of a shrinking entrepreneurial spirit in the region. The report, produced by Business NSW and the University of Sydney Business School, paints a picture of a state struggling to maintain its entrepreneurial edge. The data shows that the percentage of entrepreneurs in NSW has dropped significantly, from 8% of the workforce in 2000 to less than 5% today. This decline has far-reaching implications, as it means that NSW could have had an additional 135,000 employment-generating businesses if the entrepreneurial rate had remained stable. The story of Debbie Hatumale-Uy, an e-commerce business owner, exemplifies the challenges faced by entrepreneurs in the current economic climate. Her business, Only The Sweet Stuff, boomed during the Covid years, but soaring costs of living have forced her to cut back on employees and question the future of her venture. This narrative is not an isolated incident; it reflects a broader trend of struggling small businesses across the state. The Business NSW President, Joseph Carrozzi, emphasizes the importance of entrepreneurs in driving economic growth and job creation. He argues that the decline in entrepreneurship is not due to a lack of entrepreneurs but rather the reluctance of these entrepreneurs to take on employees. The report highlights a concerning shift in the business landscape, with a higher proportion of non-employing businesses growing compared to those employing staff. This trend is further exacerbated by the falling rate of new businesses employing staff within their first year, from 35% in 2011 to 27% in 2025. The economic challenges faced by entrepreneurs are multifaceted. Rising costs, including the cost of starting and running a business, energy costs, and regulatory compliance, are making it increasingly difficult for smaller businesses to thrive. This environment of uncertainty and rising costs is stifling entrepreneurial confidence, which is crucial for economic growth. The Albanese federal government is urged to take action, with Carrozzi advocating for reduced spending and encouragement of business activity. He believes that the business sector plays a vital role in creating jobs, economic growth, and prosperity. To reverse the decline in entrepreneurship, a comprehensive strategy is required, involving collaboration between the government, business, and community groups. Business NSW is calling for the development of a NSW Future Entrepreneurs Strategy, aiming to make NSW the best place in Australia to start, grow, and scale any business. This strategy should provide a clear path for entrepreneurs, ensuring they can realistically employ a growing workforce. The current situation is a stark reminder of the delicate balance between entrepreneurship and economic stability. As the cost of living crisis continues to impact households, the flow-on effect on small businesses is evident. Entrepreneurs like Hatumale-Uy are having to adapt and pivot, showcasing the resilience and resourcefulness required in today's business environment. The challenge now is to foster an entrepreneurial culture that can thrive despite the obstacles. The future of NSW's economy may depend on it, as the state strives to create an environment where entrepreneurs can flourish and contribute to the region's prosperity.
