The State Government has acknowledged the construction of Sydney's light rail project may have forced some businesses to close, but says it is unrealistic for owners to expect compensation.

Tonight up to 50 business owners affected by the construction of the South East Light Rail project will meet with the Opposition's Transport Spokeswoman Jodi McKay.

They want compensation for lost trade and Amelia Birch, who owns the Book Kitchen in Surry Hills, will be among them.

Patronage has dropped and the Ms Birch claims she has cut her staff from 10 to two.

"As soon as the barricades were erected on the footpath in front of our business we dropped trade by 50 per cent for that week compared to the same week last year," she said.

"The week after was down 60 per cent."

Ms Birch said the Government was not doing enough to support business affected by the construction.

Businesses 'shut down all the time'

The coordinator-general for Transport for NSW, Marg Prendergast, accepted times were tough.

"We know there's been a couple of businesses that haven't renewed their lease because of the construction, but we continue to work with them," she said.

"Businesses shut down all the time throughout the city."

She dismissed calls for compensation.

"If there was a compensation regime, we pay out for the disruption period which is short, do they pay us back for the benefit at the end?" Ms Prendergast said.

"We wouldn't build anything if that was the case."

But Labor's Transport Spokeswoman Jodi McKay disagreed.

"These businesses, whether they're renting or owning the building, they're still paying the same rates, they're still paying rent and they're still paying land taxes," she said.

"We believe there should be some form of compensation."