With cost-of-living pressures at the forefront of the WA state election campaign, local business owners say they are feeling the heat of rising prices.

Krankin Cafe owner Duncan Rankin says he has never seen the hospitality industry struggling like it is today, with cost-of-living pressures contributing to the stresses small businesses are facing.

The owner of the Como cafe says the cost of living and the increase of multi-national businesses in the area are hurting small operators like him.

“They can undercut me severely in price and they can wear the cost,” he says.

According to the Small Business Development Corporation, in June 2023 there were over 230,000 small businesses in Western Australia, making up nearly 97 per cent of businesses in the state.

Senior research fellow at the Curtin Bankwest Economics Centre Daniel Kiely says small businesses will struggle because consumers have decreased discretionary spending.

“Those sectors will be particularly feeling the pinch,” he says.

Dr Kiely says small businesses are not only critical for the WA economy, sustaining employment and local communities, but also play an important role in supporting larger businesses.

“Larger businesses often need small businesses to help deliver on their bigger projects,” he says.

Dr Kiely says it’s important consumers continue to support small businesses during these difficult economic times.

According to the latest report from the Australian Small Business and Family Enterprise Ombudsman, factors such as high input costs and lack of staff are contributing to the weakening conditions of small businesses, which have fallen by 0.3 per cent.

Small business owner Sarah Yates recently had to sell her cafe in Como, Our Ruby Girl, which opened its doors in 2018.

“I think on a personal level it’s been like a huge investment of time and energy and money, I have just run out of all fruit,” she says.

In a post to Facebook, Sarah wrote how a lack of support for local businesses can hurt small operators.

“Every single time we choose the cheap top online, the froyo from the vending machine, we are signing the death warrant of the single owner / operators in retail and hospitality,” she wrote.

Ms Yates says people’s spending habits have also changed.

“I think as a culture in general, we are choosing the cheapest option at the expense of independent operators,” she says.

Mr Rankin says he feels there hasn’t been enough support from the government to help alleviate the issues.

“Every now and again you’ll get $200, that’s not even a couple days of power,” he says.

Both parties say they recognise the financial burden faced by small businesses owners and have included relief for small businesses in their election promises.

If re-elected, the WA Labor Party says it will back small businesses by providing $1.3 million in support through their Small Business Growth Grants Program.

In its campaign, the WA Liberal Party says it would address the financial issues faced by small businesses through addressing payroll tax.

Ms Yates said the closing of small businesses like hers would remove something essential from neighbourhoods.

“We dilute the ability of our communities to have colour and vibrancy,” she says.