Small businesses on Norfolk Island face both challenges and opportunities. The island’s economy is heavily reliant on tourism, which has created opportunities for small businesses in the hospitality and service sectors. However—the decline in the number of tourists travelling to Norfolk Island has created challenges for small businesses, particularly in the retail sector.
One of the main challenges facing small businesses on Norfolk Island is the island’s small size and limited resources. This makes it difficult for businesses to achieve economies of scale and compete with larger businesses in other markets. Additionally—the island’s reliance on tourism makes it vulnerable to external shocks, such as changes in global travel patterns or natural disasters.
Despite these challenges, there are also opportunities for small businesses on Norfolk Island. The island’s unique culture and natural environment provide opportunities for businesses in the tourism, agriculture, and fishing sectors. The island’s self-governance also provides opportunities for businesses to operate in a relatively low-tax environment, with no federal taxes, including goods and services (GST), income or company tax.
To support small businesses on Norfolk Island, the government has implemented various initiatives, including the Norfolk Island Economic Development Implementation Plan— which aims to identify and demonstrate opportunities for small business and retail on the island. The plan includes initiatives to support the development of new businesses, improve infrastructure and promote the island’s unique culture and natural environment.
Small businesses on Norfolk Island face both challenges and opportunities. The island’s reliance on tourism creates challenges for businesses in the retail sector, while the island’s small size and limited resources make it difficult for businesses to achieve economies of scale. However, the island’s unique culture and natural environment provide opportunities for businesses in the tourism, agriculture, and fishing sectors, and the government has implemented initiatives to support small businesses and promote economic development on the island.
