Naomi Simson warns it’s never been tougher to run a business in Australia

Australia’s entrepreneurs are navigating a more challenging business environment, with higher interest rates, tighter financing conditions, rising compliance costs and ongoing policy uncertainty putting pressure on growth.

Naomi Simson, the entrepreneur behind RedBalloon, has spent more than two decades building businesses and advising entrepreneurs.

The founder of RedBalloon, author, professional speaker and former Shark Tank Australia investor draws on her experience to offer practical insights into navigating difficult conditions and building resilient businesses.

For founders, the end of cheap money has changed the equation.

Access to affordable capital can no longer be taken for granted, forcing businesses to take a closer look at cash flow, hiring, investment and growth plans.

Simson says the lessons of previous downturns highlight the importance of staying adaptable and making disciplined decisions rather than reacting to every shift in the market.

Naomi Simson with Ahron Young at the Ticker Studio

The rising cost of doing business

Regulation is another growing concern for small businesses. While compliance requirements are often designed to improve standards and protect workers and consumers, Simson argues that the financial and administrative burden can be significant for smaller operators with limited resources.

The issue is not simply the cost of compliance.

For business owners, uncertainty around future regulatory changes can make it harder to plan ahead, particularly when decisions involve significant investments or additional staff.

Policy instability can also affect hiring.

Entrepreneurs may delay bringing on employees when they are uncertain about future costs, obligations or the broader direction of government policy.

For small businesses competing with larger companies, these additional costs can have an outsized impact.

Housing pressures add another challenge

Australia’s housing crisis is also creating challenges for entrepreneurship.

High housing costs can make it harder for employees to relocate, while younger Australians may find it increasingly difficult to take the financial risks associated with starting a business.

For younger founders in particular, the combination of expensive housing, limited access to capital and a higher cost of living can create a significant barrier to entrepreneurship.

That raises broader questions about whether Australia is creating an environment where the next generation of entrepreneurs can afford to take risks, build companies and employ others.

What founders can do now

For business owners operating in this environment, resilience increasingly comes down to preparation.

That means maintaining a clear view of cash flow, carefully assessing new costs, understanding regulatory obligations and being selective about where capital is allocated.

Businesses also need to distinguish between temporary market pressures and structural changes that require a longer-term response.

Simson’s experience highlights a central lesson for entrepreneurs: difficult conditions do not necessarily prevent businesses from succeeding, but they demand greater discipline and adaptability.

As Australia enters a period of higher costs, tighter financing and greater regulatory complexity, the businesses most likely to thrive will be those willing to adapt quickly, manage risk carefully and keep looking for opportunities to grow.