The decline of entrepreneurship in NSW is a troubling trend, with a recent report revealing that the number of entrepreneurs has dropped to its lowest level in 35 years. This is a significant issue, as it means that the state is missing out on potential job creation and economic growth. The report highlights a stark contrast between the number of businesses in NSW and the number of businesses employing staff. While the total number of businesses has increased by 22% between 2016-17 and 2024-25, non-employing businesses have grown by 27%, and the proportion of new businesses employing staff within their first year has fallen from 35% to 27%. This is a worrying sign, as it suggests that the state is not creating enough employment opportunities for its citizens. The report also points out that if the 8% rate of entrepreneurship still held today, NSW would have had an extra 135,000 entrepreneurs potentially running employment-generating businesses. This is a staggering number, and it highlights the potential economic impact of a lack of entrepreneurship. The Business NSW President, Joseph Carrozzi, emphasizes that the state is not short of entrepreneurs, but rather, it is short on entrepreneurs taking on that first employee. He argues that the missing 135,000 employing businesses represent jobs that were never created, opportunities that never opened up, and investment that never happened. This is a critical issue, as it means that the state is not fully utilizing its entrepreneurial potential. The report also highlights the challenges faced by small business owners, such as high costs, cautious customers, and a cost-of-living crisis. This is a complex issue, as it affects not only individual businesses but also the broader economy. The Business NSW President calls for the NSW Government to work with businesses and communities to develop a NSW Future Entrepreneurs Strategy, with the aim of making NSW the best place in Australia to start, grow, and scale any business. This is a bold and ambitious goal, and it will require significant commitment and effort from all stakeholders. In my opinion, the decline of entrepreneurship in NSW is a serious issue that requires urgent attention. The state needs to take steps to encourage more people to start their own businesses and provide support for those who are already in the entrepreneurial space. This could include reducing the cost of starting a business, providing access to capital, and offering mentorship and training programs. Additionally, the state needs to address the broader economic challenges that are affecting small businesses, such as high costs and a cost-of-living crisis. This will require a multi-faceted approach that involves collaboration between government, business, and community groups. Overall, the decline of entrepreneurship in NSW is a complex and multifaceted issue that requires a comprehensive and coordinated response. It is a critical challenge that needs to be addressed to ensure the state's long-term economic prosperity and job creation.
