An extensive business survey by Regional Development Australia (RDA) has identified the barriers preventing small to medium businesses in the Orana area from looking to expand.
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Five hundred businesses across the 13 Orana shires were surveyed as part of the Orana Regional Workforce Planning and Development Strategy and a decreased demand for the business, the weather and an inability to compete against big businesses were all identified as major barriers to expansion.
CEO of RDA Orana Felicity Taylor-Edwards said early indicators showed difficulties accessing the right skills was another major barrier for small businesses.
"Employers indicated that getting people with specialised skills and the right experience and attitude was their biggest recruitment issue, but the data also showed location and wage competitiveness within Orana across all subgroups, including size, turnover, footprint and industry sector, makes it difficult to get the right people for the job," Ms Taylor-Edwards said.
Ms Taylor-Edwards said automotive and engineering were the areas with the greatest skill shortage, but there were significant shortages identified across a variety of sectors including farming, health and retail.
More than 50 per cent of employers reported they had difficulty recruiting in the region.
"This is just the first step in being able to address some of these issues together.
"With the right evidence we can work out what the most effective strategies can be. For example, we may not be able to change the wage structures to attract more skilled workers, but we can look at how we advertise the region or parts of the region as a place to live and work. We can work with education and training providers to make sure course delivery matches future demand."
The survey found that for all employers across all regions in all sectors, competition for wages came from within Orana.
"We need to look at how we make it more attractive to work in the region. Dubbo is critical because there are a lot of regionally based positions here.
In addition, Ms Taylor-Edwards said the research found 58 per cent of the businesses surveyed would be very likely to hire 17 to 25 year olds, yet youth unemployment in the region remains at 15 per cent, so addressing the inconsistencies would be another goal for the organisation.
She said the organisation will now be developing solutions to the concerns businesses have about being left on the knife's edge at upcoming workforce capacity forums.
"When you look at the number of small businesses in Dubbo it's significant if they don't grow. Across NSW, small businesses are the backbone of our economy."