Australian Bureau of Statistics and Treasury data shows more than 43 per cent of companies in the Wollongong local government area were accessing the Federal Government's JobKeeper program in May.
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Analysis of the data by actuarial consultancy Taylor Fry revealed 7.1 per cent more Wollongong businesses are accessing JobKeeper than the national average, highlighting the impact inflicted on local businesses by the COVID-19 pandemic.
It is thought the result is partly due to the local economy's exposure to accommodation and food businesses, as well as construction.
The Council of Small Business Organisations Australia said the analysis highlights the scale of the challenges faced by small businesses and the need for people to spend locally whenever they can.
"Areas like Wollongong have been hit hard by this pandemic," CSBOA chief executive Peter Strong said.
"Small businesses support local surf clubs and sports teams. They support schools and bring character to neighbourhoods. Whenever you are making a spending decision, think about these businesses and go local first.
"So whether it's for meal deliveries, shopping for groceries, getting some accounting work done or some maintenance on your home or place of work, consider how you can support your community and go local first."
Wollongong publican Ryan Aitchison is not only an advocate of all businesses doing as much as they can in the region to help each other out.
He is leading from the front to show how it can be done. And customers are responding in a way that is already changing culture and expectations.
Mr Aitchison's hotel The Illawarra has been replacing international brands with locally made beers, spirits and wine and has been sourcing local produce for all the food on its menu.
Mr Aitchison believes if more businesses do that patrons will get a taste for more local and actually ask for world class locally produced food and beverages when they walk in.
"Big change will happen when consumer habits change and they start holding businesses accountable," he said.
"It will also start a huge cultural shift where people come to Wollongong and the Illawarra knowing that it is going to be a really rich regional experience."
Mr Aitchison said he knew such an approach had already been adopted successfully by restaurants in the Shoalhaven and the South Coast but not so much by the hotel industry in the Illawarra.
He thinks that is because there are so few independent pubs left and all the bigger operators are on deals with national and global suppliers.
He said going local was not just about stocking a few local products. It was about going out of your way to commit to favouring locally made products and locally grown produce.
"That is a good thing about being a small independent pub," Mr Aitchison said.
"If it can kick off on a large scale it will be such a big source of employment. And more employment in that kind of industry can only be good for the region.
"Even though we are small on a good day we will spend up to $40,000 on food and beverage.
"If we can divert even 70 to 80 per cent of that to local producers that is a huge shot in the arm. And if other pubs go down that road imagine what that would mean for the local economy."
Taylor Fry principal Alan Greenfield said the analysis Australian Bureau of Statistics and Treasury data shows the impact of COVID-19 restrictions varies between neighbouring Local Government Areas.
He said centres most impacted by the coronavirus crisis are tourist and residential areas.
The in-depth geographical analysis of JobKeeper payments can be viewed at https://taylorfry.com.au/articles/jobkeeper-reliance-may/. And COSBOA is running a six-month campaign supported by the Federal Government encouraging people to go local first.
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