Survey Highlights the Pressure on SMEs

A recent survey by the Australian Chamber of Commerce and Industry (ACCI) found that almost half of small business owners have considered closure in the past year, with rising input costs, skills and worker shortages, and increased government regulation all taking their toll.

ACCI, which is Australia’s largest and most representative business network, polled small business owners from around the country to get an idea of how they were faring in the current economic and regulatory environment, and the findings were concerning.

Among its specific findings, the survey results showed:

• 45 per cent of small business owners have considered closing or leaving in the past 12 months.
• 82 per cent of small business owners said that red tape is having a major or moderate impact on their business.
• 50 per cent of respondents said they were spending more time on red tape than 12 months ago.
• 40 per cent said they will make a reduced or a significantly reduced profit this financial year compared to the previous year.
• More than 50% said their greatest expense was overcoming skills and worker shortages.

Peter Harper, CEO of Visual Connections, said the findings were concerning but in line with feedback received by the association and its members. And, with small businesses playing such a fundamental role in the Australian economy – and the visual communications sector – he called on government needed to do more to reduce red tape and create policies, legislation and regulations which help, rather than hinder, business success. 

"Small to medium enterprises make up a very important part of the print and graphic communications sector and we know from the feedback we are receiving, both directly through our trade shows and networking events, and via our members who are in daily contact with providers, that they are facing a 'perfect storm' of tough economic conditions, rising input costs, ongoing supply chain disruptions, a global skills shortage, and an increasingly complex and confusing regulatory environment," Peter says.

"The health of these businesses is vital to ensure the ongoing strength of our economy, and we join with ACCI and other representative bodies in calling for governments, policy makers and regulators to focus on initiatives which will help put downward pressure on the cost of essential inputs like energy, make it easier to find, train, employ and retain staff, and reduce unnecessary regulation and red tape.”

The effect of recent government changes to industrial relations law are already being felt, he said, although the full impact will take some time to analyse, with more changes still to be implemented in coming months. The ACCI survey, however, shows business owners are already very worried, saying they fear a 'damaging, or extremely damaging' impact on their business from more onerous compliance obligations and the potential for unions to interfere with their decision-making.

“A complex and confusing regulatory environment costs time and money, while any savings that can be made on administration and compliance can have a positive impact on productivity and profitability," Peter says.

"We would urge governments to consult widely with industry and representative bodies before formulating and introducing new legislation, to ensure it is fit for purpose and does not have any unintended negative consequences, and also for businesses to be given the information, resources and supports they need to understand, and comply with, any new changes."

"The role of industry associations, like Visual Connections, is vital in helping businesses navigate these issues and I would strongly encourage our own Members to make use of their member resources and our Workplace Advice Line, and would also urge industry businesses to lean on their industry associations who can provide a wealth of resources, advice and assistance."

Read the full ACCI survey here.

Access the ACCI survey fact sheet here.