Garth Horsfield, who has been running Babushka in Humffray Street for five years, said the pressure of council and government costs made it almost impossible for small business owners to prosper.

Mr Horsfield said the implications for alternative venues like his – a haven of live music, performance and culture – were dire.

Earlier this week, he set up a fundraising page on GoFundMe, asking the community for $9600, which he says are his set costs without profit, to keep Babushka going for another year.

He has been speaking with Ballarat Council, which says it is keen to find solutions.

Mr Horsfield said he had been self-funding the bar without making any profit due to onerous licence fees for the kitchen and bar, as well as rates and insurance for the building.

He also said a recent burglary had contributed to his hardship.

He has received massive support. As of Friday afternoon, he had raised $3010 in only two days.

“We need a little place that’s a bit indie, that’s not so mainstream and more ecclectic,” Mr Horsfield said.

“If a town focuses only on the mainstream, commercial aspect of everything, you lose something and lose value in the town. People in towns like Ballarat want these grassroots things.”

He said Babushka hosted everything from LGBTI groups to poetry, green groups, burlesque, comedy, fundraisers and emerging musician and artist nights – something “pretty unique” for Ballarat.

Mr Horsfield, who has one subsidised staff member to help him, said the onerous conditions put on small businesses were a “big disincentive” and that fees should be tiered so sole operators didn’t have to foot the same level of bills as big operators.

“You factor in the hire and lease of a building when you start something like this, but there’s not always someone to tell you all of the costs. You find out as you go. There are so many of them,” he said.

“If all those costs weren’t there, I would be drawing a wage, but I give it all to the government.”

The City of Ballarat’s Live Music Strategy aims to increase live music performance opportunities within the city while also supporting the sector.

Councillor Belinda Coates said the council advisory group and had been engaging with Babushka and other venues to pinpoint issues and to help organisations prosper with marketing and promotion as well as regulation and planning support.

She said the council could potentially consider fee-relief for Mr Horsfield.

“What we want to do is create a vibrant cultural environment where live music is appreciated in the local community,” she said.

“There are definitely particular challenges for smaller venues. We can look at specific things, whether that is reassessing some particularly fees.”

To contribute to the campaign, visit www.gofundme.com/SaveBabushka