Each city was evaluated against the key metrics, with the data normalised and weighted to create a single ‘Business Success Score’. Photo: Kellie O’Brien.
Wollongong has beaten Sydney to rank among Australia’s top 20 cities to start a business, according to a new report.
The report from payment solutions experts WorldFirst analysed seven key metrics, including business survival rates, cost of living and access to talent.
Factors were weighted to create a single ‘Business Success Score’, to highlight how location can make or break a small business in an increasingly challenging economic environment.
At 18th place, Wollongong was one of only two cities in NSW to rank in the top 20, with Wagga Wagga close behind in 20th position. While the two cities tied on business survival rate after one year (87.1 per cent), after four years (62.9 per cent) and number of insolvencies by region (4634), Wollongong’s cost of living for a single person ($27,020) and access to talent (64.30 per cent) were slightly better.
Despite being less than 100 km from Sydney, Wollongong outscored the NSW capital by 15 points, too.
The report shows Wollongong entrepreneurs benefit from a cost of living nearly 80 per cent lower than Sydney’s, all while remaining within easy reach of a major metropolitan hub.
Business Illawarra director Coralie McCarthy was unsurprised Wollongong outranked Sydney as a place for business, but also, that only two of the state’s cities made the cut.
“We do not have an open for business approach in the NSW State Government,” she said.
“Never-ending red tape, over-taxing and increased cost of doing business, impacted by government lack of collaboration on things like workers’ compensation, have an impact on attracting and maintaining business.”
Coralie McCarthy said nothing in the report came as a surprise. Photo: Business Illawarra.
But Ms McCarthy acknowledged Wollongong’s winning business blend of long-established players, such as the Port Kembla steelworks, and thriving SMEs (which make up more than 97 per cent of the Australian business landscape).
Institutions such as the University of Wollongong help attract highly qualified talent, while the stunning Illawarra Escarpment adds lifestyle appeal, making it clear why Wollongong has leapfrogged Sydney in the rankings.
“The Illawarra is uniquely placed. It’s positioned between what will be three international airports and a deep-sea port,” Ms McCarthy said. “It’s a connected and supportive business environment, with award-winning businesses that have started from an idea in Wollongong. The ecosystem is here to support business, and that not only matters, it’s truly unique and special.”
As the end of 2025 draws near, WorldFirst Head of Commercial ANZ Jim Vrondas said to ensure a business’s success against external forces, it was important for owners to understand how the wider Australian economy and the economic factors influencing their specific state affected their business.
“After analysing seven key economic factors as part of this report, it’s clear that choosing the right location for your business can be a big indicator of success,” he said.
“It was especially surprising to see how smaller areas such as Wollongong, Kalgoorlie-Boulder, and Geraldton outranked major cities like Sydney, Melbourne, and Perth, suggesting that entrepreneurs should consider less well-known areas when starting their business.”
Check out the full report here.
