Across Western Australia, changing climate conditions are becoming more frequent and more intense. For small businesses, these changes aren’t just environmental, they can directly affect your costs, customers, operations and long term viability.
Understanding how climate impacts show up in your business is an important first step in managing risk and building resilience.
Here’s your guide to what these climate impacts can look like in real terms and what you need to consider in your own business.
WA’s changing climate
In recent years, WA has experienced more heatwaves, bushfires, droughts, floods and coastal erosion. These climate impacts are expected to continue and intensify, creating challenges for businesses across a wide range of industries and regions.
As a business owner, you may have been directly impacted by these changes already – or perhaps you’ve seen other businesses in your industry or local area affected by climate events. The important thing to know is that every business in WA is likely to be impacted by these changes to our climate – and now is the time to plan ahead.
To assist small business owners in WA plan and prepare for climate impacts, the Small Business Development Corporation will be launching the Climate Ready program in 2026. This program will included workshops, resources and limited grant funding to help you become Climate Ready.
How climate impacts directly affect small businesses
Climate impacts can influence many aspects of running a business, even if your business is not located in a cyclone, flood or bushfire prone area - from how goods are delivered to how much it costs to keep the doors open. Below are some common ways your business may be affected:
Operations and supply
- Supply chain disruptions and delays – A large number of WA businesses depend on their goods or supplies being able to move smoothly across our transportation networks. Recent events such as Cyclone Zelia in the Pilbara can cause widespread disruption to businesses, with delivery delays due to road closures and cyclone damage.
- Agricultural challenges – Climate events can have a direct impact on crop yields, livestock stress, water availability, changing growing seasons and other factors. These impacts don’t stop at the farm gate and can disrupt supply chains, increase costs and affect availability for food processors, manufacturers, retailers and hospitality businesses. For example, severe hail and storm events in the Great Southern and Wheatbelt regions in November 2025 wiped out vast amounts of crops, resulting in significant losses for many farmers and flow-on impacts for businesses that rely on local produce.
Costs and infrastructure
- Rising costs – Climate impacts can lead to increased operational costs such as more expensive insurance cover, the cost of repairs, water and energy. For example, during a heatwave, you might run your air conditioning over more hours each day, which could create a spike in your electricity bill for that period.
- Damage to premises and assets – Flooding, storms and extreme heat can damage buildings, equipment and stock, resulting in downtime and unplanned repair costs.
Tourism, events and seasonal trade
- Challenges in the tourism sector – Changing climate has an impact on flora and fauna, such as the decline in penguin numbers seen in recent years on Penguin Island. This can have a flow-on effect to businesses built around tourism by affecting the number of visitors, access to outdoor attractions and other factors.
- Outdoor events – Forecasts of unpredictable or high-risk weather conditions can lead to event cancellations, postponements or other impacts, such as the World of Food Festival which was cancelled in December 2025. Stall holders and businesses involved at events like these have to adapt to a sudden change in their operations and expected income.
- Seasonal timing changes – Climate impacts such as drought can have an effect on seasonal timing, which can create challenges for many small businesses such as those in the retail and hospitality sectors. For example, for the businesses which are busier than usual in WA’s wildflower season, dry conditions mean less wildflowers in bloom, while unpredictable rains can lead to earlier or later blooms than expected.
Overall, there are a range of climate factors which can create challenges for small businesses. This can have an impact on every aspect of a business, from stock supplies to staffing levels. As a business owner, it’s essential to be ready for the changes unfolding across WA. One of the best things you can do to build resilience in your business is to stay informed, to help you get prepared with the tools and support you need.
Get climate ready
The Climate Ready program will include workshops, tools and resources designed to support WA’s small business community and help businesses build resilience in the face of the changes and challenges ahead. Workshop attendees will also have the opportunity to apply for funding to help put their climate adaptation plans into action.
Sign up to be the first to know when these workshops go live and get your business climate ready.
