Almost half of Australia’s small businesses have considered leaving or closing their operations in the past twelve months, according to a recent national survey.
The Australian Chamber of Commerce and Industry’s (ACCI) latest survey on small business conditions highlights the significant struggles faced by the majority of the nation’s businesses.
Small businesses make up more than 97% of the nation’s business community, and 45% of those have reconsidered their futures, ACCI reports.
Increased costs and skills shortages top the list of concerns for employers, much like we see in state-based surveys.
A striking 82% of small businesses have reported that red tape is having either a major or moderate effect on their operations, with 61% of those surveyed noting that red tape has increased over the past 12 months.
Andrew McKellar, Chief Executive Officer of ACCI, supports the survey’s findings, stating that small businesses are in crisis and need more attention from the government.
“Small businesses are the backbone of our economy,” said Mr. McKellar.
“Our new survey shows the dire conditions they face, and they are often a second thought when it comes to policymaking, legislation, and regulations.
“Small businesses need more consideration from governments, especially when new rules and regulations are introduced. Governments tend to be very good at implementing new regulations but not as good at explaining those changes,” he added.
Recent changes to industrial relations laws are also a major concern for small businesses, with more than half of those surveyed stating that 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, but small businesses are very worried about the potential for unions to interfere with their decision-making,” Mr McKellar added.
“In this environment of labour shortages and inflated energy costs, which are already putting pressure on small businesses, the government’s IR law changes are a further kick in the teeth.”
You can read the full results of ACCI’s small business survey here.
The South Australian Business Chamber is currently collecting data for it’s June Quarter Survey of Business Expectations. If you wish to participate on behalf of your business, you can complete the survey here.
