MSME Day

Celebrating World Micro, Small and Medium-Sized Enterprises Day

Olivia Pearce — Mon, 24 Jun 2024 23:02:16 +0000

Celebrating World Micro, Small and Medium-Sized Enterprises Day Olivia Pearce Tue, 06/25/2024 - 09:02

25 June 2024

The Australian �Թ�� and Family Enterprise Ombudsman, Bruce Billson, is encouraging Australians to celebrate World Micro, Small and Medium-sized Enterprises Day on 27 June by saying thank you to small and family businesses for their contribution to our economy and our country.

“These are great people in plain sight, and we see them everywhere, every day,” Mr Billson said.

“We depend heavily on the small and family-run businesses in our lives who work every day to delight customers and energise enterprise.

“The best way to support small businesses is to be a kindly customer – patient and understanding, with good and generous intent.

“Small business also needs to be front of mind for our policy makers and regulators. We need to do all we can to shift the mindset from minimising headwinds to maximising the ‘wind in the sails’ of our hard-working small and family businesses.”

Mr Billson called for a greater appreciation of the contribution of small business to be shown by creating the Prime Minister’s �Թ�� Awards and for state, territory and federal governments to require every Cabinet submission to include a small business impact statement.

“Why not establish the Prime Minister’s �Թ�� Awards to celebrate excellence and inspire the next generation?” Mr Billson said.

“And a simple improvement that governments at all levels around the country could take is to require every submission to Cabinet to include a small business impact statement.

“Every well-intentioned change by Parliament or regulators risks adding to the mountain of red tape that gets between the owner and the small business they are trying to run.

“Regulatory impact assessments should start with and focus on small business implications, not consider this as an afterthought. This would mean every time a decision is made, small business will be front of mind and bright on the radar screen.”

Almost 98 per cent of businesses in Australia are small businesses – some 2.5 million who generate almost $600 billion of economic activity accounting for 33 per cent of our nation’s GDP.

Small businesses provide jobs for 5.36 million people – 42 per cent of private sector jobs.

“This contribution is truly worth of recognition and celebration, but in 2006 the sector contributed 40 per cent of GDP and employed 53 per cent of private sector jobs,” Mr Billson said.

“This worrying trajectory shows we need to do more to energise enterprise.

Just released figures from the Tax Office show 46 per cent of small businesses didn’t make a profit in the most recent year of accounts available.

And some three-quarters of self-employed business owners are earning less than the average total weekly, full-time earnings.

“There’s no rivers of gold for these people, just a hard slog,” Mr Billson said.

“Surely, we can do more to get the risk and reward balance right, ensuring small business and entrepreneurship is a really attractive option for people, then create a supportive ecosystem to give enterprising people the best chance to be successful.”

Mr Billson said there needed to be a greater understanding of the cumulative demands and resource-constrained circumstances of small businesses.

“There’s a flurry of new workplace rules and obligations, changes to privacy laws, fear about cyber security and what we call ‘white tape’ where big business is asking for more and more information from small businesses suppliers,” he said.

“Small and family businesses are not looking for an escape hatch, but need a right-sized, actionable, fit-for-purpose, and efficient approach with appropriate support and guidance.”

Data compiled by ASBFEO also shows small business owners are also getting older with the average age now 50, up from 29 where it was in 1976. In the 1980s there were twice as many small business owners aged between 30 and 49 as there were aged over 50.

Only 8 per cent of our small business owners are under the age of 30, half what it was in the 1970s.

“Why is the next generation not seeing self-employment and their own enterprise as a pathway for the future?” Mr Billson said.

“At a time when young people, particularly, look for purpose as well as profit in their lives, isn’t self-employment a natural fit?

“Encouragingly, 35 per cent of small businesses are owned by women –double the rate from the 1970s. Increasingly, new businesses are being created by women who are finding solutions to everyday problems, sharing their ideas and building a business from their ingenuity.

“One in three small businesses are also run by people who were born overseas and our culture, local business communities, and the choice of goods and services available to consumers and other businesses, are enriched by their presence.”

Mr Billson said small business is a dynamic and fast-growing sector that allows people with an entrepreneurial spirit to pursue their dreams and own livelihoods.

“They come with varied ambitions, backgrounds and experiences but what they have in common is the desire to have a go,” he said.

“Taking on the responsibility of owning and running a small business can be inspired by a range of goals and motivations, an abundance of purpose and meaning and be rich with unpredictability of challenges, flexibility, self-agency and income.

“The spirit that drives people to run a small business also makes them great advocates for and contributors to their community and they are more likely than the general population to be a volunteer.

“For small and family business owners, their identities are interwoven into their business and the stakes are so much higher than just a job. Many people have invested a lifetime -- and put their family home on the line -- to build up their business, which amplifies the emotional challenges.”

Mr Billson said it was important those running a small business look after their emotional well-being and mental health and commended the Australian Government’s budget decision to provide $7.7 million over two years to extend funding for mental health support through the New Access for �Թ�� Owners program and $3.1 million over two years for the �Թ�� Debt Hotline.

“We have seen a 20 per cent increase in calls to our helplines over the past year from small businesses struggling to manage their debts,” he said.

“Sometimes it can be as simple as making time to pause, reflect and reconnect. Talking to trusted advisers and networks is a great way to find solutions. Our website www.asbfeo.gov.au also has tools and resources that can be useful.

MSME Day is an initiative of the United Nations General Assembly to raise public awareness of small business’ contribution to our prosperity, wellbeing, and community.

MEDIA CONTACT: 0448 467 178 / media@asbfeo.gov.au

Keeping small businesses afloat comes down to us all

Olivia Pearce — Sun, 23 Jun 2024 23:38:56 +0000

Keeping small businesses afloat comes down to us all Olivia Pearce Mon, 06/24/2024 - 09:38

24 June 2024

Originally published in the Canberra Times.

This week we celebrate World Micro, Small and Medium-sized Enterprises Day, which is a terrific opportunity to say a big thank you to the enterprising people who are the lifeblood of our communities.

We depend heavily on the small and family-run businesses in our lives - whether it is an electrician or builder, childcare operator, gardener, dog groomer, doctor or dentist.

It may be a bookkeeper or accountant, private tutor, cleaner or health therapy professional, a truck driver, fitness instructor or graphic designer.

Perhaps it is a local winemaker or farmer, mechanic, bespoke jewellery maker, pharmacist, grocer or cafe owner who work every day to delight customers and energise enterprise.

These are great people in plain sight,. We see them everywhere, every day.

Small business is a dynamic and fast-growing sector that allows people with an entrepreneurial spirit to pursue their dreams and own livelihoods. They come with varied ambitions, backgrounds and experiences but what they have in common is the desire to have a go.

MSME Day, on June 27, is an initiative of the United Nations General Assembly to raise public awareness of small business' contribution to our prosperity, wellbeing and community.

Almost 98 per cent of businesses in Australia are small businesses - some 2.5 million who generate almost $600 billion of economic activity, accounting for 33 per cent of our nation's GDP.

Small businesses provide jobs for 5.36 million people - 42 per cent of private sector jobs.

This contribution is truly worthy of recognition and celebration. But in 2006 the sector contributed 40 per cent of GDP and employed 53 per cent of private sector jobs.

This worrying trajectory shows we need to do more to energise enterprise.

Small business needs to be front of mind for our policymakers and regulators. We need to do all we can to shift the mindset from minimising headwinds to maximising the "wind in the sails" of our hard-working small and family businesses.

Why not establish the Prime Minister's �Թ�� Awards to celebrate excellence and inspire the next generation?

Every well-intentioned change by Parliament or regulators risks adding to the mountain of red tape that gets between the owner and the small business they are trying to run.

A simple improvement that governments at all levels around the country could take is to require every submission to Cabinet to include a small business impact statement. Regulatory impact assessments should start with and focus on small business implications, not consider this as an afterthought.

This would mean every time a decision is made, small business will be front of mind and bright on the radar screen.

Just released figures from the Tax Office show 46 per cent of small businesses didn't make a profit in the most recent year of accounts available.

And some three-quarters of self-employed business owners are earning less than the average total weekly, full-time earnings.

There's no rivers of gold for these people, just a hard slog.

Surely, we can do more to get the risk and reward balance right, ensuring small business and entrepreneurship is a really attractive option for people, then create a supportive ecosystem to give enterprising people the best chance to be successful.

Expectations and the "ask" take too little account of the cumulative demands and resource-constrained circumstances of small businesses.

There's a flurry of new workplace rules and obligations, changes to privacy laws, fear about cyber security and what we call 'white tape' where big business is asking for more and more information from small businesses suppliers.

Small and family businesses are not looking for an escape hatch, but need a right-sized, actionable, fit-for-purpose, and efficient approach with appropriate support and guidance.

Our small business owners are also getting older with the average age now 50, up from 29 where it was in 1976. In the 1980s there were twice as many small business owners aged between 30 and 49 as there were aged over 50.

And only 8 per cent of our small business owners are under the age of 30, half what it was in the 1970s.

Why is the next generation not seeing self-employment and their own enterprise as a pathway for the future? At a time when young people, particularly, look for purpose as well as profit in their lives, isn't self-employment a natural fit?

Encouragingly, 35 per cent of small businesses are owned by women - double the rate from the 1970s. Increasingly, new businesses are being created by women who are finding solutions to everyday problems, sharing their ideas and building a business from their ingenuity.

One in three small businesses are also run by people who were born overseas and our culture, local business communities, and the choice of goods and services available to consumers and other businesses, are enriched by their presence.

Taking on the responsibility of owning and running a small business can be inspired by a range of goals and motivations, an abundance of purpose and meaning and be rich with unpredictability of challenges, flexibility, self-agency and income.

The spirit that drives people to run a small business also makes them great advocates for and contributors to their community and they are more likely than the general population to be a volunteer.

For small and family business owners, their identities are interwoven into their business and the stakes are so much higher than just a job. Many people have invested a lifetime - and put their family home on the line - to build up their business, which amplifies the emotional challenges.

The pressures can feel unrelenting, but it is vitally important those running a small business look after their emotional wellbeing and mental health.

Sometimes it can be as simple as making time to pause, reflect and reconnect. Talking to trusted advisers and networks is a great way to find solutions. Our website asbfeo.gov.au also has tools and resources that can be useful.

The best way to support small businesses is to be a kindly customer - patient and understanding, with good and generous intent. Small businesses are run by real people who deserve our respect and empathy every day.

Our small and family business owners and managers are great people, and we salute the terrific contribution they make everywhere, every day.

TRANSCRIPT: Micro, Small and Medium-sized Enterprises Day, Insolvency Figures

Olivia Pearce — Wed, 28 Jun 2023 04:02:29 +0000

TRANSCRIPT: Micro, Small and Medium-sized Enterprises Day, Insolvency Figures Olivia Pearce Wed, 06/28/2023 - 14:02

27 June 2023

TRANSCRIPT

Australian �Թ�� and Family Enterprise Ombudsman Bruce Billson interview with Glen Bartholomew.

ABC News Radio

Subjects: Micro, Small and Medium-sized Enterprises Day, Insolvency Figures

Glen Bartholomew
Small business is worth more than half a trillion dollars to the Australian economy. That data was released on what is World Micro, Small and Medium Enterprises Day by the �Թ�� and Family Enterprise Ombudsman Bruce Billson, who joins us now. Good afternoon.

Bruce Billson
Glen, fab to be with you and your listeners, sir.

Glen Bartholomew
People may be surprised to know that 98% of our businesses are a small business, that is it employs fewer than 20 people. How is the sector faring after what's been a difficult couple of years for many?

Bruce Billson
Well, the statistics point to an interesting picture of still enthusiasm. We've seen a significant growth last financial year in small businesses contribution to the economy. Still, we see increasing numbers of people forming small businesses. More so in areas that have been more affected by COVID. But we also pick up that there's a lot of small businesses not making a profit. And interestingly a lot of your listeners might not appreciate this immediately, about 70% of small business owners earn less than average total male weekly earnings. It's not super profitable, but their motivation maybe for some of the other reasons that people get into business. They've got a real excitement about what they're doing, a purpose to their life, they like the flexibility, the mode of engagement. So, a bit of a mixed story there, Glen.

Glen Bartholomew
But the value to the economy surging by 15% in 21-22 more than $500 billion, a third of our GDP. And not surprisingly, a pretty big employer too.

Bruce Billson
Yeah, that's right. That half-trillion dollar contribution is something that deserves to be celebrated on this International Micro, Small and Medium Enterprises Day. And when we look at the more than 5 million jobs in the economy that small businesses generate, that's a really significant economic contribution. But also, let's not lose sight of the self-employment story here. There's about 1.6 million Australians that don't work for somebody else. They work for themselves. They're self-employed, they go about their livelihoods through that mode and often they're not seen brightly enough on the radar screen. And that's something we also want to highlight and celebrate. That's an extraordinary contribution to the economy.

Glen Bartholomew
More than 5 million people employed, as you say, nearly double the amount supported by big business. So does the sector get the recognition it deserves or is it often drowned out by big business?

Bruce Billson
Well, there's never too much recognition for small and family businesses because let's remember these are the community-based entrepreneurs that are providing livelihood opportunities and vitality to the neighbourhoods and communities and regions that we live in.

They're also least likely to have lobbyists, big industry association and big voices. So, what we aim to do is bring their story, their issues and concerns and opportunities to improve the environment within which they operate to government, as well as being an ally in resolving disputes they may have with other businesses, with big corporates and with government.

So that's our contribution and it's a chance for us to recommit all of us as citizens of Australia to the vital contribution enterprising men and women of small business make.

Glen Bartholomew
What then are the biggest issues facing small business right now? Is big business finally paying its bills on time yet?

Bruce Billson
Well, they haven't peaked early on that one, Glen. Still, we've got about one in four big businesses taking more than 120 days to pay their small business suppliers and only about a third that are paying in within a month. Now payment times within a month, that's hardly spectacular. That's not too much to ask. Yet we've got about a third achieving that outcome.

And so what we say to big business is play your part. These small and family business suppliers are vital to your supply chains. There’re cost pressures in businesses, margin squeeze there that many are feeling. And I mentioned earlier that there's a number that aren't particularly profitable and there's many that aren't earning a large income from their entrepreneurial activities.

Glen Bartholomew
Can I ask you about that? Around 43% failing to make a profit. Three-quarters of small business owners taking home less than the average wage. So how are they surviving?

Bruce Billson
Well, this is the thing. They are motivated by their business. They have their personality in many respects and their identity interwoven into their enterprise. But they are also not living an income blessed life. They're really having to deal with the cost-of-living pressures that households are feeling. And let's remember, half of all small business loans are secured by a mortgage over the person's home. So, all those pressures that consumers are feeling are also there for small business off the back of, in many cases, quite modest incomes. But they're probably thinking look, we are optimistic we small business people, they're looking forward to the future. There's still some optimism about improvement in their circumstances. So, they're probably looking to trade their way out and delight more customers as a way of improving their income in years to come.

Glen Bartholomew
But on the downside, I guess perhaps some of them aren't surviving. Giving the latest figures from ASIC showing the highest rate of business insolvencies in more than seven years. More than 7100 companies collapsing in the 12 months to June. On track to exceed the pre-pandemic levels of such collapses. How concerned should we be that these failures now are spreading beyond construction to other areas like childcare, retail and healthcare?

Bruce Billson
We should be concerned because it does reflect many headwinds that small and family businesses are facing. It also reflects a change in posture, Glen. We knew during the COVID era and shortly after it, the Tax Office, big lenders, other financiers, others with trade credit were in a support and assist mode, trying to be as helpful as they can be. Now, there is a time of those arrangements being brought back to a more regular setting. That does mean for people that have had those accommodations previously that they may have now the time to deal with those debts that may have accumulated during COVID.

We're also seeing businesses trading with other businesses making more inquiries about the financial resilience of those that they're doing business with, just to make sure the terms and conditions that they're engaging on with those small businesses reflects their financial strength as well.

So, there's clearly a heightened sense of awareness about that financial vulnerability. It's why the best thing we can do is get behind those small and family businesses on this international day, show them that we value that community and do our bit to help vitality in those businesses.

Glen Bartholomew
Perhaps a little message for the Reserve Bank ahead of the next meeting in a week's time as well. Of course, there was a government inquiry into insolvencies. I know you've made a submission to that. Let's see where we go in that direction. But for the moment, Bruce Billson, thanks very much for your time.

Bruce Billson
Glen, great to be with you and your listeners, sir.

TRANSCRIPT: Micro, Small and Medium-sized Enterprises Day, �Թ�� Matters data report

Emily Carter — Tue, 27 Jun 2023 04:31:33 +0000

TRANSCRIPT: Micro, Small and Medium-sized Enterprises Day, �Թ�� Matters data report Emily Carter Tue, 06/27/2023 - 14:31

27 June 2023

Australian �Թ�� and Family Enterprise Ombudsman Bruce Billson interview with Rebecca Levingston.

ABC Radio Brisbane

Subject: Micro, Small and Medium-sized Enterprises Day,

�Թ�� Matters data report, Queensland small businesses

Rebecca Levingston

In a moment, the �Թ�� Ombudsman on the state of small business today. You're going to hear a story after 9 o’clock of a pie shop - love, hard work, dedication poured into pies. But this weekend, Pie Town is closing down. Why? Well, Susie Yang will tell you. And can we still claim that small business is the backbone of this country if we don't support our small business owners? If you run a small business, tell me your story this morning.

Do you have a dream of owning a small business? Dream of being your own boss, leading a team? Small business is worth about half a trillion dollars to the Australian economy, according to a new report. Employing more than 5.1 million people.

But that same report found that 43% of small businesses failed to turn a profit. 75% of owners take home less than the average wage. After 9 o’clock this morning, you're going to hear from Pie Town owner Susie Yang. This is the West End Pie Shop. Susie's made the difficult decision to close.

Susie Yang

I think for me it was a combination of some very personal reasons on my part. I've been doing this for over six years by myself now. And the economy, I think as everybody's seeing, just seems to be getting worse. And I think it was just the last week of having to do all my recipe costings and all my staff costings for the rest of the year. And I just couldn't do it anymore.

Rebecca Levingston

That’s Susie Yang. More from Susie and her pie shop after 9 o’clock this morning. Bruce Billson is the Australian �Թ�� and Family Enterprise Ombudsman. Bruce, good morning.

Bruce Billson

Bec, fab to be with you and your listeners.

Rebecca Levingston

It's hard to hear when a small business closes down, isn't it? What's your reaction when you hear of one having to shut for good?

Bruce Billson

Oh, I just ache for Susie. I mean, she is sharing the very personal and challenging story of owning and leading a business. It's a big responsibility. There's headwinds in the economy, there’s price pressures. And she's also reflecting something that's often not well appreciated. The business owner is often the last to be paid. And, you know, when things are tight and energy costs are going up, she'll be using energy with baking her products, all the input costs, staff costs. It can be a big responsibility, not always with the material rewards that you're looking for.

And that's what we're trying to shine a light on, on this International Micro, Small and Medium-sized Enterprise Day, Bec. A shout out to the Susies of the world that this is a challenging economy right now. But the courage, the entrepreneurship, the innovation that comes with business owners grabbing an opportunity and saying, we're going to have a go.

Not all are successful. And our report highlights that for many, they're not super profitable either, but making vital contributions to our economy. The number of jobs you've mentioned, over 5 million that are made possible by enterprising men and women like Susie. You know, there's a half and a half a trillion dollars, $506 billion of economic contribution.

And right across the great state of Queensland and the nation generally, these small and family businesses add to the community fabric. It's where young people get their first job opportunity. Our report also highlights that those small business owners are the real contributors as well in many aspects of the local community, community leadership and volunteering. That's the story of small business men and women and that's why we wanted to celebrate it on this International Day.

Rebecca Levingston

I'd love to give a shout out to small businesses. If you've got a story to tell this morning or want to give a shout out to someone sent me a text 0467 922 612. And you hear from Susie after nine who really says to people, if you've got a small business, an independently owned business in you suburb, chances are it's a family or an individual, like you’re saying Bruce, they'll be the last to be paid, they'll be juggling all of the responsibilities 24 hours a day. And Susie really says, you know, support those businesses.

Just by definition, what is a small business, Bruce?

Bruce Billson

Well, it's an enterprise that employs less than 20 people. So there are various definitions. That's broadly the one that's used through the data set that we were using. People would be familiar with other definitions used by the Tax Office that goes to the turnover within the business. And there's other dimensions that go to the size of certain transactions and whatnot.

So there's quite an array of descriptions, but we're using a well-regarded data set from the Australian Bureau of Statistics. And one of the big things that it calls out is the number of people that are actually self employed.

So they've chosen a path for their livelihoods where they're not employed by anyone else, they're self employed. And what a vital opportunity that is for economic contribution, particularly for mature age people.

We see more mature age people actually self employed than employed by somebody else. And we also see, in terms of women's entrepreneurship, a real uptick, almost doubling in the percentage of businesses owned and led by women since the seventies.

And many women share with me it's the scope, the flexibility, the chance to adjust, you know, timetables to not only the business and livelihood interest, but other priorities in their life.

And in Queensland, it's one of only two states where there's more small businesses outside the capital cities, and that's something to really be celebrated. And even, you know, during the COVID financial year, which is where this data is drawn from, we still saw a 5% growth in the number of small businesses in Queensland.

So there's vitality there. There’s people that are involved in it for a whole range of reasons. It gives purpose and meaning to their life. It's a way of earning a living. It's also interwoven in with their personality in many cases, and for some it might be the best mode of engaging in the economy that suits their life objectives.

Rebecca Levingston

Yeah, some really interesting figures that you've just run over there. Doubling of women running small businesses since the Seventies. Fascinating to see that just 8% of small business owners are under 30 compared to 17% in the mid 1970s. Why do you think that is?

Bruce Billson

I think it could be a range of things and these are only hypotheses because we're doing a bit more work on that. We're trying to make an entrepreneurial life, the jam of young people, something that really excites them, it jazzes them, it gives them freedom, you know, march to their own beat, pursuing a range of opportunities.

But I think when the economy was, you know, nearing high levels of employment, there's probably some fairly attractive other options as ways of earning a living that don't involve some of the significant responsibilities that Susie alluded to that you'll be talking with her about later.

You know, it is a big responsibility owning and running a business. There are accountabilities, there's red tape, there's responsibilities that you need to turn your mind to. And even there's legal structures that you need to do certain things to have certain legal protections that the business has its own legal personality, separate from you.

And then when the family's brought in, I mean, there's an interesting mix, isn't it, whether the dining room table becomes the boardroom table and you’re navigating family dynamics as well as trying to run a business. So we're hoping to have a bit of a look at that. To use a phrase that I use regularly, energise enterprise, and have young people see this as a real opportunity for their future.

And we see many young people with side hustles. When I was recently in Brisbane, I met an awesome young woman who had a pet that, well, frankly, it was incontinent. And she loved this pet. And the vet was saying, no, no, no, let's not do this. You might have to put the pet down.

She was horrified by that as an idea and went on and created nappies for dogs. Now, that was a problem solving approach that she as a young woman, and I might as well give her a shout out, she runs Dundies. She's an awesome, awesome human and to talk with Emily about that, Emily Martin, one of your residents in your city, about her story of problem solving that led to other people wanting a piece of her solution. And before you know it, she's got a national business employing 15 seamstresses all around greater Brisbane. That's a fantastic story and that's the kind of inspiration we hope to draw attention to.

Rebecca Levingston

Wow, that is entrepreneurship. Nappies for dogs,

Bruce Billson

Nappies for dogs. Dundies.

Rebecca Levingston

Great to chat this morning. Appreciate it.

TRANSCRIPT: Micro, Small and Medium-sized Enterprises Day, �Թ�� Matters data report

Emily Carter — Tue, 27 Jun 2023 02:41:21 +0000

TRANSCRIPT: Micro, Small and Medium-sized Enterprises Day, �Թ�� Matters data report Emily Carter Tue, 06/27/2023 - 12:41

26 June 2023

Australian �Թ�� and Family Enterprise Ombudsman Bruce Billson interview with Oly Peterson.

6PR Perth

26 June 2023

Subject:

Micro, Small and Medium-sized Enterprises Day,

�Թ�� Matters data report

Oly Peterson

Tomorrow (June 27) is world Micro, Small and Medium-sized Enterprises Day. Did you know 98% of Australian businesses are a small business? So most of the businesses that you engage with are a small business. It coincides with the new report out today, �Թ�� Matters. Joining me is the Australian �Թ�� and Family Enterprise Ombudsman. Bruce Billson, good afternoon.

Bruce Billson

Oly, it’s fab to be with you and your listeners and isn’t it interesting, an international day is what's its taken to get off the topic of the West Coast Eagles. It gives you an idea how big this is. I mean, I'm a Tigers fan. Talk about pain. My goodness. We used to say we're 17 years into our five year redevelopment plan. But anyway.

Oly Peterson

But as a Tigers fan, you sympathise with Eagles fans. How long do you think they have to wait to get out of these pain and misery? Another 15 years?

Bruce Billson

Well, I hope for the Eagles fan it's not because I remember my son, who's now 25, looked at me one day and said, Daddy, can you tell me why we barrack for the Tigers again? But I needed to even convince the offspring that it was a sound call.

But, what is good news all around is tomorrow is international Micro, Small and Medium Enterprise Day and we think it's a great time to shout out to those small and family businesses that really delight you as a customer, that add so much to your community. And as you touched on earlier, 98% of businesses are small business.

A third of all the GDP in Australia is generated through small and family businesses. So that's half a trillion dollars, Oly. It's a big deal. You know, there's 2.6 million small businesses. Two out of every five jobs in the private sector is made possible by small business. And we've got to recognise this is such a vital contributor. That's what tomorrow's all about.

Oly Peterson

And it's still growing as well, adding 15% in 21-22 to Australia's GDP. So Bruce say they do go from strength to strength. But you know, the outlook as we know in the economy at the moment in Australia isn't as rosy as it was.

Bruce Billson

There's plenty of headwinds there and changing times sometimes play into some businesses model and sometimes not.

I mean a bit like Geelong playing at Kardinia Park. A narrow footy oval suits some people and it's a bit like that in the economy with small businesses. We saw a significant increase in the number of small businesses last financial year and that was kind of COVID affected. Slightly less in WA, 5% new businesses in 21-22, compared to 7% nationally.

But we also pulled out some numbers. It's not all beer and skittles being a small business owner Oly, and I'm sure your listeners would appreciate that. During that time, that's the last financial year, about 43% of small businesses didn't make a profit. About three-quarters of small business owners actually take home less than the average male total weekly wage, because so often it's the business owner that is last to be paid.

And when margins are being squeezed, and we've talked about that before, that can have a real impact on those business owners. But they keep at it Oly because it's a real driver in their life. Often their own personal identity is interwoven into it. They like the flexibility, they want to be self employed and running their own show, marching to their own beat. And that's great. And we need more of that. And that's why we're honoring those contributions tomorrow.

Oly Peterson

And on the positive side of things as well, there's been a huge surge in female ownership when it comes to small businesses, Bruce.

Bruce Billson

Yeah, it's been huge. I mean, it's almost double the rate from 1970. So, just over a third of all businesses now are owned and led by women.

And when we look at that story that sits behind it, it's often because women are great problem solvers Oly, and many businesses arise from a woman solving a problem in their life that they share with their friends who go, hey, that's a great idea. Can I have a piece of that action as well? And then before you know it, the business is up and about.

We did some research around women owned businesses. Many talk about the flexibility it affords them, that they can balance other life objectives, family, livelihoods.

But also that flexibility is also important for more mature aged people. I don't know whether many people realise Oly, more mature age people actually are still employed running their own business than are actually employed by other people.

You talk to mature aged people who still feel they're got plenty of fire in the belly. They sometimes feel, you know, some workplaces are a little ageist, they go, well, hey, I'll get amongst it on my own terms. And that's where self-employment is so attractive to mature age people as well.

Oly Peterson

And that's important. But for younger people under 30, Bruce, I see a stat in your report, that shows just 8% and we go back to the seventies, it was 17%. So what are we doing to younger people under the age of 30 who don't want to start their own business? Or what else can be done to help them?

Bruce Billson

Well, something's happening there. We're doing some extra work to try and work out what that looks like. Our early thesis, it's only a thesis Oly and your listeners might pick up what I'm putting down here, that when the economy is strong a lot of young people look at pretty attractive employment opportunities rather than embark on their own venture because no matter which way you cut it, owning and running your own business is a big responsibility and not everyone's cut out for that.

And when there's big opportunities elsewhere in the economy, maybe you might put that idea of running your own business or being an entrepreneur on the back burner.

But what we also hear about is people, you know, putting a toe in the water as a bit of a side hustle, seeing how it goes, seeing whether it takes flight. That's the sort of thing we want to encourage.

And my aim in my work is to try and make the environment within which enterprising men and women think about their future as attractive as it can be. You mentioned at the outset there's been a few headwinds of late. Maybe that makes it a little less attractive. What can we do to put the wind in the sails of enterprising men and women and not just in their face and that's where we do a bit more work out of this excellent research.

Oly Peterson

Well, Happy world, Micro, Small and Medium-sized Enterprises Day tomorrow and go and thank those small businesses that we all communicate with Bruce. I think that's what we should be doing. Give them a little pat on the back.

Bruce Billson

Indeed Oly, and the best way of doing that, put some of your hard-earned into those businesses. Let them know you value what they do, and that adds to the economic and community vitality. It's a great time to acknowledge that contribution. It's really worthwhile.

Oly Peterson

Good on you, Bruce. Good to catch up. We'll chat again soon.

Bruce Billson

Take care and best wishes to you and your listeners and can I say go the Tiges, or is it too soon?

Oly Peterson

Bruce Billson, the Australian �Թ�� and Family Enterprise Ombudsman.

Small business worth more than half a trillion dollars to the Australian economy

Emily Carter — Sun, 25 Jun 2023 22:41:36 +0000

Small business worth more than half a trillion dollars to the Australian economy Emily Carter Mon, 06/26/2023 - 08:41

26 June 2023

The economic contribution of small business to the Australian economy has topped half a trillion dollars, according to a report released today by the Australian �Թ�� and Family Enterprise Ombudsman, Bruce Billson.

The value of small business to the economy surged by 15 per cent in 2021-22 to $506 billion and accounts for one-third of Australia’s GDP.

The �Թ�� Matters report has been released to coincide with World Micro, Small and Medium-sized Enterprises Day on 27 June.

The report also shows that Australia’s 2.5 million small businesses provide jobs for 5.1 million people and employ 42% of all apprentices and trainees in training – nearly double the amount supported by a big business.

Almost 98% of businesses in Australia are small businesses.

“Small businesses are the lifeblood of our communities, and we celebrate the vital contribution they make to Australia’s prosperity, wellbeing, and community,” Mr Billson said.

“This is a terrific opportunity to say thank you and show support to the small businesses who matter in our lives.

“Small business people come with varied ambitions, backgrounds and experiences. What they have in common is the entrepreneurial flare and desire to have a go.”

Statistically, the average small business owner is a self-employed man, aged 50, who works full-time and earns below the average full-time wage.

But the report shows female ownership is growing fast and accounts for 35 per cent of all small business owners – almost double the rate from the 1970s.

Mature age people are more likely to be a business owner than an employee. Nearly half of all small business owners are over the age of 50. The average age of a small business owner has been steadily climbing.

Just 8 per cent of small business owners are under 30. That’s half the peak for this age group of 17 per cent achieved in the mid-1970s.

“We need to replenish and nurture the next generation of entrepreneurs, value self-employment and encourage and enable smaller enterprises and the livelihoods they make possible,” Mr Billson said.

“We need to understand why it is not as appealing as it perhaps should be for younger Australians to own a small business?”

Mr Billson said 60 per cent of small business owners, or 1.55 million people, were self-employed.

The report shows the flexibility of self-employment was a particularly attractive livelihood option for women and older people. Small business owners are more likely than the general population to perform unpaid childcare and have other caring responsibilities particularly for those with a disability, health condition or old age.

“It would be wrong to miscast these people as vulnerable gig economy workers,” Mr Billson said.

Around 43 per cent of small businesses failed to make a profit and 75% of small business owners take home less than the average wage.

“Yet, the spirit that drives people to run a small business also makes them great advocates for and contributors to their community and they are more likely than the general population to volunteer for an organisation or group,” Mr Billson said.

“Our small and family business owners and managers are great people and we salute the terrific contribution they make everywhere, every day.”

MEDIA CONTACT: 0448 467 178

MSME Day

Celebrating World Micro, Small and Medium-Sized Enterprises Day

Keeping small businesses afloat comes down to us all

TRANSCRIPT: Micro, Small and Medium-sized Enterprises Day, Insolvency Figures

TRANSCRIPT: Micro, Small and Medium-sized Enterprises Day, �Թ��� Matters data report

TRANSCRIPT: Micro, Small and Medium-sized Enterprises Day, �Թ��� Matters data report

Small business worth more than half a trillion dollars to the Australian economy

TRANSCRIPT: Micro, Small and Medium-sized Enterprises Day, �Թ�� Matters data report

TRANSCRIPT: Micro, Small and Medium-sized Enterprises Day, �Թ�� Matters data report