What's Happening?
A new report by the Council of Small Business Organisations Australia (COSBOA), supported by CommBank, reveals significant pressures on regional, rural, and remote small businesses in Australia. The 2026
Small Business Perspectives Report, the first to focus exclusively on these areas, highlights challenges such as rising operating costs, declining profitability, and workforce shortages. The report, conducted by Survey Matters, shows that 87% of regional small businesses have experienced increased expenses over the past year, while 73% report a decline in profits. Additionally, 87% of businesses that attempted to recruit faced difficulties due to shortages in skilled trades and specialist occupations. The report underscores the compounded pressures from housing shortages, limited access to essential services, and infrastructure gaps, which are shaping the future of regional communities.
Why It's Important?
The findings of the COSBOA report are crucial as they highlight the systemic challenges faced by regional small businesses, which are vital to local economies. These businesses not only support local employment but also contribute significantly to the economic and social fabric of their communities. The report suggests that without appropriate policy interventions, these businesses may struggle to survive, potentially leading to broader economic and social impacts. The pressures identified, such as rising costs and workforce shortages, could hinder the ability of these businesses to invest, grow, and sustain operations, affecting regional economic stability and growth. The report calls for policy changes to reduce business costs, simplify regulations, and improve access to essential services, which could help unlock the potential of regional economies.
What's Next?
The insights from the report will inform discussions at the 2026 COSBOA National Small Business Summit, where regional Australia will be a major focus. This summit will bring together policymakers, industry leaders, and small business representatives to examine the research findings and discuss the policy settings needed to support regional businesses. The report provides a roadmap for strengthening regional economies by advocating for reduced business costs, simplified regulations, and investments in housing and essential services. These discussions aim to create a supportive environment for regional small businesses to thrive, ensuring their continued contribution to local economies and communities.
