Data

TRANSCRIPT: Small business owners getting older (Radio 2BS Bathurst)

Emily Carter — Fri, 25 Aug 2023 04:53:28 +0000

TRANSCRIPT: Small business owners getting older (Radio 2BS Bathurst) Emily Carter Fri, 08/25/2023 - 14:53

24 August 2023

TRANSCRIPT

Australian �Թ�� and Family Enterprise Ombudsman Bruce Billson interview with Jac Underwood.

Radio 2BS Bathurst

Subject: Small business owners getting older

Jac Underwood

It is a huge honour to welcome to the program the Australian �Թ�� and Family Enterprise Ombudsman. Bruce Billson, good afternoon.

Bruce Billson

Jac, you're just saying that to be nice, but it is a treat to be with you and your audience. How are you?

Jac Underwood

Really, really well. Good to be speaking to you. And you're keeping well?

Bruce Billson

I am keeping out of mischief. I've been busily training the cattle dogs, my two cavoodles who haven’t quite taken to it yet, but we'll keep at it.

Jac Underwood

I think you might have some work cut out for you. You're from the regions aren’t you. Didn’t you grow up on a farm?

Bruce Billson

Oh, no. I was born in Albury and we had a little place as a family down Gippsland way running some Herefords. But right now I think I'm one of those fake farmers. I've got four and a half acres at Murrumbateman. But I must say when I was at AgQuip earlier in the week at Gunnedah, probably the site itself, the largest agricultural fieldays, is probably bigger than my place in its entirety. It was interesting talking to the rural community, the farmers, graziers, those involved in agriculture out at Gunnedah hearing about what's on their mind and what they're thinking about the future.

Jac Underwood

Yeah, well we do things the best out here in the bush, but I'm probably biased. Now Australia's small business owners are rapidly getting older. Some new research. So how are you looking at this?

Bruce Billson

I'm very fortunate to have a fantastic data analytics team here at the Australian �Թ�� and Family Enterprise Ombudsman's office, and we felt something was going on and we thought let's have a let's have a look at the evidence. And what we found was in the mid-70s there was about 17% of small and family business owners under 30. Well that's, that's 8% now and that's really quite a change. We're also seeing the most common age for a business owner being, frankly, around 50.

In fact, in Bathurst, it's a it's a little bit above that. It's 51 and you have only 7% of your business owners aged under 30. And when you look at the statistics behind that, and we were just talking about agriculture, 4% of business owners are under 30 in agriculture.

We're thinking, well, what's the next gen of enterprising men and women going to look like? Where are they coming from? Why is it that young people might not be imagining themselves to be business owners and leaders? Is the big responsibility of owning and running a business maybe too daunting for some?

Or have we not told the story about the joy that can come from shaping your own destiny, creating opportunities for yourselves and others and for many, living a real life of purpose through their business, that meets other objectives they have for their lives. That's what we're trying to unpick, Jac, what's going on here? But we know it can't be great if we're not seeing a wave of new enterprising men and women doing what they do.

Jac Underwood

If you talk about the great Australian dream, right, you think about being able to buy your own house. And if you want to set up your own enterprise and be your own boss and perhaps that's outdated now and more of a 1970s dream?

Bruce Billson

Look, I think there's something going on. I think it's also a reflection - and this is this is not something we've been able to prove but perhaps a thesis - that during recent times where we've had quite full employment, we've had skill shortages in many, many areas and you and I have talked about that before and the impact that so on the regions. Maybe there's been some juicy incomes available working for someone else and maybe valuing the flexibility to be able to go and travel and pursue other life's objectives. You and I know and your listeners know that if you're the business owner and you can't fill a shift, who tends to fill it? If you haven't got help on the property and the cows need milking, guess where the owners are.

Some of the data we released recently showed that about 43% of businesses aren't making a profit in these challenging times, but also about two-thirds aren't taking home the average wage either. So there's other things going on there and we’re just keen to really push off from this research and then ask the question what are the hesitations? Is it is it is the risk reward equation not as attractive as it should be? Or is it that for many people there's just so many other delicious possibilities?

Jac Underwood

Maybe there's too much red tape. The insurance landscape's changing, and many other things are changing. Costs are going up, rents are going up.

Bruce Billson

Oh, you're teasing me here because, you know, I think there's a lot in that. The phrase I use is maybe there's too many headwinds and not enough wind in the sails. And you've just touched on a couple of those things there. The big responsibility involves compliance obligations, reporting to the Tax Office, your employer obligations, and talk about the regulators coming down hard on people that aren't doing the right thing. Maybe that just spooks people.

And then there's another part of the story, Jac. There’s 1.5 million Australians that are self-employed. They've chosen not to employ some others, but they are self-employed and making their own opportunities and there's actually more mature age people who are self-employed than are actually employed by somebody else. And there could be a whole story around why that might be. Maybe ageism in recruitment, who knows? But there's a few moving parts there.

What we know is if we want to create the wealth and opportunity for the future, we need enterprising men and women driving growth, driving economic investment and innovation and driving those livelihood opportunities. And if we're not replacing our aging business owners and those aging business owners aren't able to, with confidence, look to the business community and think, well, someone will want to buy my business, I'll be able to profit and benefit from my dedicated decade or two of work in building up this business, then we start having a little bit of a handbrake on our future possibilities and that’s why I'm very interested in it.

Jac Underwood

How well placed are you to effect some change here? Does the �Թ�� and Family Enterprise Ombudsman have any teeth Bruce?

Bruce Billson

Oh look, it's got some teeth, but whether it's more of a gumming or a bite is for others to decide. It is set up as an independent statutory position. So I'm actually a public office holder, so I can speak frankly and hopefully with some courage, but also with clarity and credibility about what policy initiatives government might consider, where programs might not be landing well, or to use the platform my role provides to get on some of the nation's leading radio programs with mega audiences, including Jac Underwood's program on 2BS.

They're the sorts of things that we try and do. We try and build partnerships, a consensus around what could happen, what would improve things, do the legwork to identify the policy options, and then try and bring the evidence together and hope we're persuasive to government, to ministers, to policymakers. And that's our mission.

Jac Underwood

Well, it certainly is always a delight to have you on the program. Thank you for joining us.

Bruce Billson

Great to be with you, Jac. And best wishes to your listeners.

SMALL BUSINESS OWNERS GETTING OLDER

Olivia Pearce — Tue, 22 Aug 2023 22:26:38 +0000

SMALL BUSINESS OWNERS GETTING OLDER Olivia Pearce Wed, 08/23/2023 - 08:26

23 August 2023

Australia’s small business owners are rapidly getting older as the proportion of younger entrepreneurs shrinks, according to research from the Australian �Թ�� and Family Enterprise Ombudsman.

Ombudsman Bruce Billson said the most common age of small business owners across Australia is 50 years, compared to 45 years in 2006.

“In the 1980s there were actually twice as many small business owners aged between 30 and 49 as there were aged over 50,” Mr Billson said.

“The Intergenerational Report being released by the Treasurer this week highlights the ageing of the population and the quest to make our economy larger to meet the challenges and opportunities of the future.

“Small business, which accounts for 97 per cent of all businesses and provides jobs for over 5.1 million people and employs 42 per cent of all apprentices and trainees, stands at the epicentre of this mission and energising enterprise will help deliver the growth to meet future needs.

“But the small business sector faces its own demographic challenges with only 8 per cent of small business owners aged under 30. It is half the peak for this age group of 17 per cent achieved in the mid-1970s.”

Mr Billson said in some sectors it was even lower, such as retail where only 6 per cent of small business owners are aged under 30.

“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?”

More than one in five small business owners (22 per cent) are aged 60 and over.

In agriculture, forestry and fishing two-thirds of small businesses are owned by people over the age of 50.

Other sectors where more than 50 per cent of small business owners are aged 50 or over include manufacturing, retail, finance and insurance, real estate, wholesale trade, utilities and waste services.

MEDIA CONTACT: 0448 467 178

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.

Data

TRANSCRIPT: Small business owners getting older (Radio 2BS Bathurst)

SMALL BUSINESS OWNERS GETTING OLDER

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

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

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

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