The NSW government will shut down its Business Connect advisory program on September 30, ending a service that has provided tailored support to tens of thousands of small businesses.
Costing $10 million annually, the program has delivered a return on investment of up to $3 for every $1 spent, according to an independent Treasury review. Business Connect is a Government–funded program providing free independent advice to small businesses and startups.
Small businesses make up 97% of NSW enterprises, employ 1.8 million people, and contribute more than $535 billion in sales each year.
Since 2017, Business Connect has supported more than 60,000 firms, helped create 40,000 jobs, and recorded a 96% satisfaction rate. The proportion of clients considering closure dropped from 12% to 1% after receiving support.
The decision to axe the program has drawn criticism from advocates and business leaders. “The numbers simply don’t add up. You don’t cut a program that costs $10 million but helps protect a sector worth billions. That’s like throwing away dollars to save cents,” said Debbie Hatumale-Uy, chief marketing officer at Realise Business.
Sydney entrepreneur James Stewart described the move as “economic suicide”, crediting his advisor with providing “the blueprint for success” in his startup.
Premier Chris Minns acknowledged the program’s success but argued it is “not essential” compared with hospitals, schools and policing. Mr Minns pointed instead to Service NSW’s business concierge as an alternative. However, industry groups warn that the concierge system cannot replace expert mentors with local knowledge.
“Small businesses don’t need scripted advice, they need experienced advisors who understand their communities, industries and challenges,” Ms Hatumale-Uy said.
