Opinion piece by the Ombudsman Bruce Billson.

Originally published in the Daily Telegraph.

Small business is a big deal. But not as big as it used to be. Economic contribution has dropped from 40 per cent to 33 per cent since 2006 and share of private sector jobs at 42 per cent, down from over half. We are sleepwalking towards a big corporate economy.

At the same time, insolvencies are at a record high. The Tax office, hot in pursuit of tax debt, reports that 46 per cent of small businesses aren’t making a profit. That’s why I’ve proposed 14 steps to energise enterprise. More incentives for those starting out, better access to justice when wronged and more emphasis on encouraging younger Australians to consider business ownership. 

Let’s end the hidden tap-and go charges costing small business – and consumers - up to $1 billion. The big four banks still have to turn on the cheaper system for more than half their merchants. Small firms are too often left stranded by digital providers such as Facebook or Instagram. 

Big tech needs real dispute resolution process (or a real person) to deal with disputes to avoid the run around of being told to log into your account to say you can’t after being hacked! How about a tax discount or offset for new small businesses to improve cash flow in the early ‘valley of death’ years? Nine out of 10 businesses who employ someone are small yet the rules are complex and onerous. 

A dedicated small business fair work commissioner and rules could address this. Red tape grows in number and complexity. We need right-sized regulation and support that tells small business exactly what is expected. Cabinet submissions should include a small business impact statement so every time a decision is made, small business would be front of mind. Small business needs unfair business practices protections, solutions for the wicked challenge of insurance, a real opportunity to compete for government contracts and greater digital support and ease of access to get help. 

The average business owner is now 50 and only 8 per cent are under the age of 30, half what it was in the 1970s. It is in our national interest to create a more supportive ecosystem to give enterprising people the best chance to be successful.