It’s hard to believe that it’s already Christmas. I’m not sure where the year has gone, but it’s certainly flown by.
It will be getting even more frantic out in businessland over the last few days before Christmas. Most hairdressers, dog groomers, mechanics and similar services will have been booked up for months. As the clock counts down this week, it will be getting pretty busy in the shops, bars and cafés as many people attend to their last-minute shopping and wind down for the break.
Private businesses are a really important part of Canberra. Although we’re known as a public service town, the reality is that nearly two-thirds of Canberrans actually work for a private business. Those businesses employ most of us, pay taxes here, keep our communities vibrant, and deliver goods and services for the people of our city. Although Canberra was established as a government centre, the broader business sector is now a critical part of delivering economic activity and success.
Ultimately, the growth and wellbeing of private firms is down to customers like the readers of this column. Unlike, say, public service departments, businesses rely on customers buying goods and services to generate a profit. If a business doesn’t have customers, it just won’t survive.
It’s been a tough year for many businesses. Our most recent Canberra Business Beat survey, back in September, showed that fewer than half of all businesses were expecting to grow in the last three months of the year. Key challenges include the increased cost of doing business; challenges in attracting and retaining staff; and a lack of customer demand stemming from the economic downturn. Anecdotally, it’s been a difficult quarter, and things seem to be tightening up for many.
Unfortunately, most pundits are now picking that there won’t be any cuts in interest rates until towards the end of next year. This means that there will continue to be pressure on consumer spending, impacting many businesses across the Territory.
Canberra is often a bit quieter over the Christmas period, as many people will be out of town for the holidays. This means we will probably see a bit of a lull in spending, particularly in retail and hospitality, although there will be some bright spots, notably around Boxing Day and New Year’s Eve.
On behalf of the business community, thanks for supporting local businesses during 2023. Whether you’re staying here at home or heading further afield, and whether you’re shopping online or in-person, businesses that operate here really appreciate your support.
I wish you a Merry Christmas, and all the best for the holidays.
with Greg Harford, Canberra Business chamber
