AUSTRALIA | Almost half of small business owners have considered closure in the past twelve months according to a survey.
The 2024 Small Business Conditions Survey compiled by the Australian Chamber of Commerce and Industry found that small business owners feel neglected and are being strangled by red tape.
The survey took the pulse of small businesses throughout the country and found that 45 percent of small business owners have considered closing or leaving in the past 12 months. More than 82 percent of small business owners said that red tape is having a significant or moderate impact on their business. Half (50 percent) of respondents said they were spending more time on red tape than 12 months ago.
A further 40 percent said they would make a reduced or significantly reduced profit this financial year compared to the previous year.
ACCI chief executive officer Andrew McKellar said the survey showed that small businesses are in crisis.
“Small businesses are the backbone of our economy. However, our new survey shows the dire conditions they face they and are often a second thought when it comes to policy making, legislation and regulations,” McKellar said.
The survey also showed that policymakers and regulators need to do better to help small businesses and not tie them up in regulations and red tape.
“Small businesses need more consideration from governments, especially when they decide to change rules and regulations. Governments tend to be very good at introducing new regulations but not so good at explaining those changes.”
McKellar said saving time on administration and compliance is also another way to boost productivity.
Respondents to the survey also noted increasing input costs as the greatest pressure facing their small businesses, followed by skills and worker shortages, followed by government regulation.
Over half of the respondents said the greatest expense to their small business was overcoming skills and worker shortages.
“The current environment makes it hard for small businesses to create jobs and employ people.”
Changes to industrial relations laws were also a major concern for small businesses, with more than half saying the legislation will have a damaging or extremely damaging impact.
“We have yet to see the full impact of the government’s industrial relations laws flow through, but small businesses are very worried about the potential for unions to interfere with their decision-making,” added McKellar.
“In this environment of labour shortages and inflated energy costs, already putting pressure on small businesses, the government’s IR law changes are a further kick in the teeth.”
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