The Victorian Government is expanding its free business mentoring program and introducing two new funding streams as it looks to support small and family businesses facing rising costs and changing economic conditions.
Small and Family Business Minister Natalie Suleyman announced the expansion of the Business Skills Mentoring program, which offers eligible business owners three confidential one-hour mentoring sessions with experienced advisers.
The government says the program has delivered hundreds of free one-on-one business advice sessions since July 2025, with businesses across advanced manufacturing, health technology, agribusiness, regional tourism, the circular economy, technology and distilleries among those taking part.
The announcement comes as small business continues to play a central role in Victoria’s economy. The state government says small businesses account for 98 per cent of Victorian businesses, employ more than 1.3 million people and contribute more than $429 billion to the state’s economy each year.
Those figures show the sector’s economic weight, although research suggests the small business community is far from uniform. A recent analysis found Australia has about 2.73 million actively trading businesses, but almost two-thirds employ no staff, highlighting the difference between sole operators and businesses that create jobs. The research also found employing businesses have stronger survival rates than non-employing firms, suggesting support aimed at capability and growth may have the greatest long-term impact.
One business that has participated in the mentoring program is Green Collect, which works with organisations to recover and process more than 150 tonnes of stationery, electronics, furniture, clothing and household goods. The organisation used the mentoring to strengthen its marketing and community engagement.
Alongside the mentoring expansion, the government will introduce two new grant programs over coming months.
The Multicultural Skills Fund will provide grants of up to $5,000 for business skills training for multicultural businesses, while the Small Business Activation Fund will offer grants of up to $5,000 to local councils, chambers of commerce, business organisations and industry associations to support local enterprises.
Suleyman said the package was designed to help business owners strengthen their operations.
“We’re helping small and family businesses reach their full potential and building a stronger economy,” she said.
She said the mentoring was intended to build practical capability, adding: “This is about giving business owners the skills to innovate and the confidence to grow.”
The announcement comes at a time when many small businesses continue to face pressure from higher operating costs, labour shortages and tighter margins. Research published this month found that while small firms employ about 42 per cent of Australia’s private sector workforce and train 42 per cent of apprentices, many owner-operated businesses generate modest incomes and rely heavily on personal assets to finance growth.
Expressions of interest for the expanded Business Skills Mentoring program close on 31 August.
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