It’s generally considered wise not to read the comments on your social media posts, but one recently caught my eye. The suggestion was that a business I had referenced was acting a certain way because “they were only interested in making a profit.”
Now, businesses may exist for a number of reasons, but I sincerely hope the one in question was interested in making a profit, as I’m confident that the concept is still both legal and rather important for business survival in this country.
When did the idea that an owner should earn a fair return for the 60 – 70 hours a week they are putting into running their business become offensive?
Was it the post-pandemic pushback on big banks, telcos, and airlines that created this narrative? I sense that has had a bit to do with it, and unfortunately, small and medium-sized businesses have been captured in that arc.
Cash flow is the lifeblood of small business, and for those we work with in our programmes at the South Australian Business Chamber, we emphasise the importance of a profitable, sustainable business model. We can meet all the ESG criteria we like, but if the business fundamentals are not in place, our favourite local supplier is at risk of becoming just another statistic.
And those statistics are tracking badly.
13450 businesses became insolvent across Australia in 2024. The failure rate is the highest it has been since the pandemic, and these figures don’t capture the many hundreds of thousands that simply closed their doors.
I’m sure the owners, their families, customers, and local communities connected to these businesses wish they had been making a profit; as had that been the case, they may still be with us today.
If these numbers are of concern to the federal government, it certainly was not apparent in last week’s budget.
The Treasurer did make a statement about the “private sector resuming its rightful place as the main driver of this growth”, but that’s all it was – a statement. The policy and reforms required to support such a claim were absent.
Where were the initiatives to create a reliable, low-cost energy supply? To reduce complexity and red tape? To reform our taxation model, to encourage business investment? To build digital capability that we know can improve productivity, especially for small business?
The next month of election campaigning presents an opportunity for one of the major parties to stand up and put business firmly back on the agenda. To recognise, celebrate, and enable those who employ so many and keep our economy moving. As it stands today, the party that does will have a clear point of difference.
With global trade uncertainty throwing markets and supply chains into chaos, the Australian business community needs a sense of security at home with a government that has its back.
That will only come from creating a supportive policy environment.
If we get the policy settings right, the business community will respond with investment, jobs, and innovation. That is how we will be best placed to navigate the challenges ahead, drive economic growth, and, hopefully, make a profit along the way.
