A sobering regional business survey has revealed that nearly one in four country enterprises may not survive the next 12 months, prompting local community leaders to urge residents to buy local.
The warning follows the release of the latest Victorian Regional Chamber Alliance (VRCA) Business Health Survey, shared locally by the Lakes Entrance Action and Development Association (LEADA).
The report paints a stark picture of the pressures facing small business owners across regional Victoria, revealing that 44 per cent of operators are not drawing a living wage, while 65 per cent reported rarely or never achieving a healthy work-life balance.
LEADA president Sharen Cameron said the figures reflected exactly what many small business owners in Lakes Entrance had been experiencing behind closed doors.
“The survey shows that many regional businesses are not just having a quiet patch,” Ms Cameron said.
“They are working harder, carrying higher costs, and in many cases questioning how long they can keep going under the current conditions. Behind each number is a person, a family, a staff team and a business that is often deeply connected to its local community.”
According to LEADA, many of the struggling enterprises are long-standing operations that have previously survived bushfires, COVID-19, and severe staff shortages.
However, owners are now facing a compounding squeeze from all directions, including skyrocketing power bills, higher wages, insurance, freight, stock costs, and increased compliance demands, all while consumer spending slows.
Local plastering business owner Dino Zagami said outward appearances could be highly deceiving in the current economic climate.
“People see us busy on customer sites and assume everything must be fine, but the cost of staying open has changed so much,” Mr Zagami said.
“We are working harder than ever, but it does not always mean there is more left at the end of the week.”
The findings carry distinct weight for a tourist town like Lakes Entrance, which relies heavily on small hospitality, retail, accommodation, and trade businesses to drive the economy, provide local jobs, and sponsor community groups.
The town’s inherent seasonality further complicates the issue, as operators must generate enough income during peak holiday periods to carry them through quiet winter spells.
Chocky Sweetbox owner Dale Reynolds reiterated that a busy main street does not automatically equal profitability.
“A good summer does not automatically mean an easy year,” Mr Reynolds said.
“We have to make enough in the busy times to carry the quiet times, and that is getting harder when every bill has gone up.”
Ms Cameron noted that while structural issues like housing, workforce shortages, and taxation require urgent action from all levels of government, local residents hold immediate, practical power.
“When we choose to spend locally, we help keep money moving through our own community,” Ms Cameron said.
“A coffee, a meal, a gift, a haircut, or a purchase from a local shop all make a difference. That money helps pay local wages, support local families, and keep our town active.”
Ms Cameron urged business owners carrying the stress quietly to remember they are not alone, adding that protecting these businesses is vital to safeguarding the town’s identity.
“Small businesses are not just places where people spend money. They are employers, sponsors, volunteers, problem-solvers and community builders,” she said.
“Lakes Entrance has an incredible business community, but we need to recognise that many are carrying increasing costs and uncertainty quietly.”
