Australian small business' $34 billion problem — and how this pair are staying ahead

  • 📰 SBSNews
  • ⏱ Reading Time:
  • 17 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 10%
  • Publisher: 89%

Business News News

Business Business Latest News,Business Business Headlines

Insolvencies are rising as running costs soar, and small and medium-sized businesses have a collective $34 billion tax debt. But in Sydney, two entrepreneurs have found a clever way to stay afloat by boosting revenue.

Ruth Tate is sitting at the sewing machine in her eponymous boutique in Sydney’s inner west. Tate is a fashion designer who trained in the United Kingdom and now makes her own clothes from original patterns. But she says turning a profit is getting harder during the current cost of living crisis. "Rents have gone up 10 per cent this year, as they did last year as well. Fabric costs have gone up, linen in particular," she said.

So, this is a real squeeze, and in many cases, owners can't pass on those rising costs. So, it has become a really, really difficult time in terms of margins and profitability. "In fact, the latest full year of tax statistics shows that 46 per cent of small businesses are not profitable right now.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in BUSİNESS

Business Business Latest News, Business Business Headlines