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.