National Small Business Strategy launched
Shared commitment from federal and state governments to drive co-ordinated, collaborative and cohesive approach to small business policies and support
Australia’s 2.6 million small businesses can expected increased support and improved co-ordination between federal and state governments following the launch of the first ever National Small Business Strategy this week.
The strategy provides a framework for co-ordination across the federal government, state counterparts, various stakeholders and providers in the small business ecosystem to:
ease the pressure on small businesses
support small businesses to grow, and
level the playing field for small businesses.
The National Small Business Strategy sets out how jurisdictions will work together to create efficiencies and reduce duplication and complexity within the government system.
Don’t have time to read the 62 page strategy?
I’ve read the strategy so you don’t have to! I’m a small business owner myself so I’ve tried to pluck bits out of the lengthy document that I think small businesses will be most interested in and summarise it for you. Please consult the official strategy (downloadable below) if you want the official account.
I’ve also asked Google Notebook LM to create a podcast-style audio summary of the 62 page strategy so if you have 21 minutes to spare you can listen. While it’s a very engaging please remember that as good as AI is at certain tasks it may not be a totally accurate reflection of the content it has learned and condensed into audio.
The value of small businesses extends beyond jobs
It is encouraging to see the strategy identify the myriad ways that small businesses create value in their communities:
The value of small businesses goes beyond their economic contribution. They are critical building blocks of the communities in which they operate, strengthening social capital, fostering social and community cohesion, acting as stewards of local identity and as hubs of cultural exchange.
Small businesses are often active participants in, and supporters of, their local community and strengthen its social capital. These contributions often include sponsoring sports teams, supporting local schools and students, donating to charities or volunteering at community events.
Small businesses are vital in regional communities too
The strategy even acknowledges the unique role of small business in the regions:
Small businesses are particularly vital to regional communities which often rely on a specific mix of businesses to make up their commercial and social ecosystems. They provide goods and services to rural and remote areas where large businesses may be unlikely to operate due to low-density populations. These networks of small businesses can create a sustainable local investment cycle in regional areas. The loss of a critical mass of small businesses in a town centre can lead to the decline of a community’s commercial hub with flow-on effects including a loss of ancillary services, less choice for local consumers and fewer local job opportunities.
Small business ecosystem: vast, varied and complex
The strategy acknowledges that each level of government and other stakeholders play a role in a complex small business ecosystem.
Most small business owners are sole traders and operate with fewer resources than larger businesses.
As you can see from this infographic in the strategy, small business owners need to learn so much and have many responsibilities for which larger businesses have designated staff or departments.
Challenges for small business owners include:
Wearing many hats - Most small business owners are sole traders and operate with fewer resources than larger businesses. They need to learn fast about legal and regulatory requirements, customer service, financial management, human resources, IT and digital technology, contracting and procurement, marketing, supply chains and various other responsibilities for which larger businesses have designated staff or departments.
Navigating multiple challenges - Small business owners need to navigate a complex landscape of information, advice and supports to try and address multiple challenges at the same time as running their business. This can put immense pressure on business viability and the owner’s wellbeing.
Balancing work and life - Running a business does not always allow for work–life balance. Small business owners’ personal lives are often tied closely to their business, with personal and business finances interconnected and their house doubling as a home and place of business. It can be difficult to draw the line between the personal and the passion for their product or service that led them into business. Such personal challenges can add to the pressures of running the business and vice versa.
Principles and Focus areas of the strategy
The strategy is broken down into principles and focus areas.
Principles
The collaboration between various governments and jurisdictions will be guided by a set of principles to benefit small business:
Collaborative - By working collaboratively, government bodies will be able to make linkages between small business supports, policies and programs across jurisdictions in useful and new ways to complement and amplify the work already underway, with the aim of avoiding duplication of effort and confusion for small business owners. Government will also be able to identify opportunities to develop new initiatives.
Targeted - to provide information, resources and supports to the right small business owners at the right time, through the right channels, so they are easy and practical for small businesses and other relevant stakeholders to access and use.
Fair -
listen to small businesses and elevate them in government discussions and decision making, including by continuing to hold biannual Small Business Ministers’ Meetings.
The promotion of right sized regulation, through consideration of the costs and benefits when developing policy.
Consider the impacts on small businesses early in, and at all stages of, the development of cross–jurisdictional policies, and in doing so, put small businesses at the centre of government decision making.
Seek to make the operating environment more equitable for small businesses... and addressing where there are power imbalances between larger and smaller businesses, so that small businesses around the country get a fair go.
Innovative - be innovative in delivery of supports, by understanding the issues affecting small businesses and how small business owners prefer to engage with services, and by sharing lessons learned of what has and has not worked across jurisdictions.
Timely - timely decision making by governments to create a stable and supportive environment that fosters the growth and sustainability of small businesses
Focus areas
While each state has unique challenges and opportunities in relation to small businesses, the National Strategy elevates three key priorities:
Easing the pressure on small businesses
Supporting small businesses to grow, and
Levelling the playing field for small businesses.
Easing the pressure on small businesses
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A commitment to building and enhancing the services and supports available to small businesses.
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A commitment to ensuring that digital and cyber policies and programs support small businesses to adopt and harness digital opportunities while being cyber secure.
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Continued improvement of Australian, state and territory government resource hubs for small businesses, ensuring information is appropriate and up to date.
Resources should be easy to find and navigate, and designed with the needs of busy small business owners and stakeholders in mind.
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Continue to strive to streamline and simplify the compliance burden for small businesses by sharing best practice between jurisdictions and ensuring clear communication to small businesses the impacts of any changes or new regulation.
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A commitment to supporting small businesses to better understand, anticipate and respond to climate-related risks, including more frequent and intense natural disasters, and to build resilience and undertake business continuity planning.
Supporting small businesses to grow
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It is important to remove barriers for small businesses wanting to take advantage of opportunities, access new markets and implement new ways of doing business.
This can be done by reducing, and/or streamlining regulatory burden and increasing investment in business growth and development.
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Considering how to tailor supports for, and targeted to, diverse small businesses including those owned and/or led by First Nations people, women, culturally and linguistically diverse (CALD) people, and people with disability.
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Small businesses face several workforce challenges such as recruiting and retaining appropriately skilled staff and meeting changing regulatory requirements.
These challenges require solutions across a range of government policies from macroeconomic management to domestic skills and training and targeted migration to tailored support.
Governments will continue to help small businesses respond to workforce issues, challenges and opportunities so they can access and develop the skilled workforce they need to operate and grow their businesses and remain competitive.
Levelling the playing field
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Continue to look for ways to make it easier for small businesses to participate in government procurement.
All jurisdictions agree that improvements to the policies and procedures connected to government procurement are necessary to maximise the opportunities for small businesses to compete.
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Due to the inherent power imbalance between small and large businesses, governments have a role in facilitating fairness in the business operating environment.
The Strategy commits to ensuring there are adequate policies in place to improve payment times for small businesses, help protect them from unfair contract terms and ensure they can access justice in timely and cost‑effective ways.
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Enhancing competition can help improve the operating environment for small businesses.
Healthy competition can level the playing field, giving entrepreneurs better opportunities to start a business and enabling all businesses to get a fair go and to have an opportunity to succeed.
Governments will continue to explore ways to boost competition to ensure small businesses benefit from a more level playing field.
