Region hit hard as small and medium businesses shrink

By Max Stainkamph

Feb 17, 2021

Employee numbers have been cut in the past 12 months in the Goulburn Valley — including a net loss of more than 100 agricultural, forestry and fishing businesses.

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Data released by the Australian Bureau of Statistics this week confirmed despite a two per cent increase in businesses across the country, agriculture and forestry businesses shrunk by one per cent nationwide.

The Goulburn Valley recorded a net loss of 101 agricultural businesses, and while 14 ‘non-employing’ businesses — those with no employees beyond the owners — opened in that time, 105 small businesses (with one to 19 employees) closed and 13 medium businesses (with 20 to 199 employees) were shuttered.

Non-employing businesses had a net increase of 138, while small and medium-sized businesses decreased by 131 and 16 respectively across the Goulburn Valley.

The net decrease of small businesses was 10.7 per cent, while medium businesses in the region had a net decrease of nearly 40 per cent by June 30.

There’s been a net increase of nearly 30 construction businesses across the Goulburn Valley — which includes the Greater Shepparton, Moira, Mitchell, Campaspe and Strathbogie local government areas — but the data doesn’t capture the building boom from the past six months.

HomeBuilder, low interest rates and Melburnians fleeing the capital for regional areas have pushed the construction industry to capacity.

The number of construction business numbers in the 12 months leading to June 30, 2020 stayed steady at 978, but four small businesses and three medium-sized businesses were added.

Nearly 20 transport, postal and warehousing businesses were added in Shepparton, while retail’s total number of businesses stayed about the same but there was a net loss of 12 small and three medium-sized businesses and a net gain of 13 non-employing businesses.

Moira Shire was the hardest-hit local government area in the region, losing 41 businesses over the past financial year and 63 businesses employing between one and 19 people closing their doors.

Nineteen non-employing businesses started in the shire over the past 12 month period.

Campaspe Shire also saw a fall in employment, recording net decreases of 36 small businesses and 11 medium-sized businesses while 41 more non-employing businesses were recorded, mainly in finance and construction.

Six medium-sized businesses downsized or shut their doors in the past 12 months in Strathbogie Shire as part of a net decrease of 13 in medium-sized businesses across the shire.

A net increase of more than 40 non-employing businesses in both the construction and transport sectors helped give Mitchell Shire a boost despite being part of Melbourne’s restrictions for the final few months of the 2019-20 financial year.

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