A Queensland small business lobby yesterday said it had withdrawn its $250,000 campaign for the Mundingburra by-election.

The executive director of the Enterprise Council, Mr Geoff Moss, said the council had planned to stand an independent small business candidate at the by-election.

But he said the Melbourne-cup field of 12 candidates would have made it impossible for the council to effectively convey its message.

"We would be competing with a multitude of candidates in a short space of time," Mr Moss said.

"Logic says business has precious money and it cannot waste it.

"We wanted to fund a candidate because government intervention has led to the loss of so many opportunities to start projects".