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Revitalising the Kempsey business community

A case study

Prepared by The Resilience Canopy Team
Published 30 October 2025

summary

Kempsey’s businesses have long been a pillar of strength in this idyllic but flood-prone New South Wales town, providing vital employment, boosting the local economy, and supporting charities, clubs, and organisations.

However, over the past decade, various shocks and stresses, including multiple natural disasters, have led to a decline in the number of businesses, leaving the Kempsey CBD stagnant and facing a critical turning point.  

Inspired by the Resilience Canopy model, a group of Kempsey business community leaders are fighting back by diving deep into challenges, strengths and opportunities, and working together to deliver tangible, empowering, community-led results to revitalise Kempsey not only now, but with a ripple effect to help future generations thrive.

Snapshot

rEtail =

2nd

Retail trade is the second highest employment sector in Kempsey, and the fourth highest in economic output. Source

Small

businesses

Small businesses (those with fewer than 20 employees) make up the majority of businesses in regional areas like Kempsey. These businesses are often family-owned or independent operations. Source

35

shops closed

In Kempsey CBD, at least two more businesses closed down in September 2025 due to safety concerns and unreliability of staff, bringing the total to 35 vacant shops. A spate of closures, including everyday clothing stores, could amplify this devastating impact further. Source

6.3%

The proportion of the Macleay Valley’s workforce, which is unemployed, higher than the regional NSW average (5.6%). Similarly, the youth unemployment rate is 15.3% compared to 14.3% for regional NSW. Source

The challenges

The Kempsey CBD grew around the Macleay River as the needs of the population required general stores, blacksmiths, pharmacists, butchers and bakers. Many businesses were family run, handed down generation to generation, as still happens today.

Thus, local business owners are woven through the fabric of Kempsey, which is situated on the Mid North Coast of NSW and home to around 30,000 people.  

These businesses play many roles in the wider community: coaching kids’ sports teams, volunteering for charities, and assisting with disaster relief when disaster strikes.  

Retail trade represents the second highest employment sector in Kempsey, and the fourth highest in economic output, making their success and economic resilience critical to the sustainability of the wider Kempsey community. 

But a walk through the Kempsey CBD highlights the current position of the Kempsey business community...  

Empty shops abandoned and in a state of disrepair.

Scant retail and hospitality businesses dotted between service destinations, such as banks, government agencies, and employment centres.  

The Challenges

For the business community that remains, the close family heritage and the proximity with the Kempsey floodplain means that they are experienced and exceptional at coming together in times of crisis.  

When threatened by flood, hands rise to help each other move stock, keep communication channels open and sandbag businesses. Despite their own challenges, business owners respond and help the wider community in times of disaster.  

Whether its flood preparations, donating goods and services to those impacted or sharing resources - the generosity in the Kempsey business community is a hallmark of this country NSW town.  

The Resilience Canopy model presents an opportunity to harness this collective spirit and energy to think big and take meaningful action to ensure a sustainable, thriving future.

The Actions

Against the backdrop of natural disasters and social challenges in 2024, several business owners in Kempsey started meeting to discuss creating change.

One initiative the group created was Kempsey Cash – a local gift card to reinvigorate local spending ahead of Christmas. While there were ideas and enthusiasm, the group lacked time and a way to structure their plans, leaving them uncertain that they could create meaningful change.

The Resilience Canopy Practitioner Training sessions in Gladstone, just outside of Kempsey, in November 2024 provided the solution.  

The Actions

Generational family business owner, Macleay Valley Business Chamber member and school parent committee volunteer Tara Howard was one attendee; she was immediately inspired by The Resilience Canopy model.  

Re-connecting with the business owners' group, Tara worked through the readiness-to-engage assessment and made a successful application for a Resilience Canopy Activation Grant, auspicing the Resilient Business Builders Committee within the Business Chamber.
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As a trained Resilience Canopy practitioner and community leader, Tara is excited by the process ahead.

“Through conversations, the business owners have identified there is so much potential. We're here. We're ready to improve. We're ready to work towards creating bustling streets full of life and activity for the betterment of all," says Tara.

"Becoming a Canopy Community can help us develop the skills and guide us to unlocking that potential."

But for many, carving out time to attend additional meetings and dive deep while running a small business and managing life is just not feasible. In a further complication, the first committee meeting of Resilient Business Builders was rescheduled twice after the May 2025 floods inundated the CBD.  

The group have now aligned meetings with existing events of the Business Chamber, maximising the investment of time and capturing attention and ideas from a diverse group of business owners.  

As a result, the group had a productive meeting in July. Business owners shared their heritage stories. A new local caterer and independent bottle shop held a special tasting.

The Actions

And, as part of The Resilience Canopy program, community members began embarking on guided Deep Dive conversations to identify the Kempsey business community’s challenges, strengths and opportunities.

It was also decided that a portion of the group’s Activation Grant – generously funded by Resilience Canopy partner Essential Energy – would be used to support a business services mini expo and presentation from business and leadership coach Susan Judd, to help the Resilient Business Builders deliver tangible benefits to those participating in the conversation and to motivate others to get involved.  

Impacts

The potential impacts of a connected business community who have a plan for resilience are profound.  

“By building a stronger, more resilient business community, we can strengthen the economy, create jobs and support the next generation of business owners – learning from mentors with decades of experience,” says Tara.

Although they have been set back by natural disasters and other commitments, and are still in the early stages of The Resilience Canopy journey, the Kempsey business community is already feeling the Canopy principles of C.R.E.W - Connection, Respect, Empowerment, and Wisdom - and is confident about its future.

“We have had to work around the busy patches in the retail cycle and pick ourselves up again after a major flood caused significant damage to many businesses – but we’ve also shared ideas, connected and learned from each other during this first year,” affirms Tara.

“Working through the Deep Dive has given us a reason to connect with peers and bring people together – the process itself is helping our business community build C.R.E.W.”

By instilling the ripples of C.R.E.W. so early into their resilience journey, this community is setting up a strong foundation from which to build momentum and to create long-term changes that can benefit Kempsey’s community members for generations to come.

Connection, Respect, Empowerment, and Wisdom are further aided by the community’s engagement with meaningful partners like Essential Energy, who are providing this community group with $25k in funding support, as well as experts that the group can learn from.  

As this community picks itself up again after another devastating flood, having cause for hope, togetherness, and shared objectives is priceless; the impactful actions that will inevitably follow even more so.  

Impacts: what worked?

Want to know more about C.r.e.w.?

What characteristics does a resilient Canopy Community have in common? Connection, respect, empowerment, and wisdom, also known as C.R.E.W.. Find out more on our Program page

Looking ahead...

Future plans include partnering with Kempsey Council’s Business Resilience and Recovery workshops during Small Business Month in October 2025 and conducting a survey to align community and business expectations while boosting participation.
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Looking ahead to 2026, the Kempsey Resilient Business Builders will prioritise their ideas and get more input from knowledge partners including local and state governments. Formalising a Resilience Plan will give focus and purpose to the group and help these busy, dedicated business owners measure their successes.