15 October 2024

TRANSCRIPT

Australian Small Business and Family Enterprise Ombudsman Bruce Billson interview with Deb Knight.

Money News

Subject: growing number of small business disputes with big tech digital platform providers, workplace relations complexity for small businesses

Deb Knight

Sounding a warning this week is the Small Business and Family Enterprise Ombudsman with growing concern over the number of small operators caught up in disputes with big tech companies. And the Ombudsman, Bruce Billson joins me now. Bruce, welcome back to Money News. 

Bruce Billson

Deb, fab to be with you and your listeners. 

Deb Knight

So, we know digital engagement is as important for small businesses now than ever. But is it becoming a bit of an increasing challenge for a lot of operators. 

Bruce Billson

It's a tricky space because it's hugely important for business to be digitally engaged. And for many small and family businesses, it might be their only channel to their customers. So, it becomes really important that that's reliable, they know how to engage. Those digital platforms Deb, you and I would know it's a tough job finding customers and where they bring those aggregated customer eyeballs, that can be very attractive for businesses who think, okay, now I've just got to delight them, the customers are there. 

That can be very challenging, though, because you're not the only business on those platforms. It can be very price competitive. And then what happens if your account gets hacked and you're locked out of your own account, and that's your only channel to engage with your customers and delight them with what you offer. That can be expensive because you lose that contact. It could be months. It might also see you incur costs because the hackers might get on to your credit card or whatever is attached to that account. 

In some cases, it might actually be a business ending experience, because you lose the confidence of your customers, you’ve lost access to key intellectual property in that channel, and it might be game over. So, it's really important that where those disputes arise, that we can get an outcome and get one quickly. 

Deb Knight

And we know that these big tech, they're notorious for not finding another human being to make contact with at the other end to get a fix to problems when they do arise. You're pushing for a standardised procedure so there's a fair playing field, rather than a David and Goliath fight. I would argue that should be extended not just to businesses, but to all users of these tech operators. 

Bruce Billson

That's probably right. But I get out of bed each day championing the cause of small and family businesses. My 16-year-old daughter would probably think, if she was cut out of one of these platforms, she'd want it fixed now. Dad, fix it. And I'm like, no, no, I'm here working for small and family businesses.

Deb Knight

But the same ideas apply to both, surely?

Bruce Billson

It does, and I don't want to discount the importance of social media engagement as a point of contact, as a real social ecosystem, to many people. But in relation to businesses, it can be effectively their front door to Main Street. And if the street’s cut off and you can't see customers, you know how bad that can be if you're in retail and you've got a physical presence. If you're on a digital platform, it's the same thing. If people can't get to your site, or you've lost control over it, and they're now posting stuff that's weird, and your customers might be really turned off by. Or worse still Deb, they use that hack into your account to use your credit card, your payment facilities, to push out crypto ads that are bogus, that can be really bad. 

And then when you go their own website to say, Hey, I can't get into my account. And they say, Hey, log into your account Deb, and tell us you can't get into your account. To quote John McEnroe, after a bad line call, you can't be serious!  But that's what too many businesses are facing. And we're looking and calling on those big platforms to do better. To do better.

Deb Knight

Well, they make a lot of money as well off the custom of businesses. They shouldn't just do better because it's the right thing to do, because it's an important business model.

Bruce Billson

And their customers are these small businesses using these platforms to engage in trade and commerce. It's not just consumers, and consumers are very important, but those small business customers, they're the intermediary, they're the enablers of that commerce, and they need to do better. If people are locked out of their accounts, there should be a way of having that resolved. 

A great novel idea. How about having a real person that you can contact if you try all the other frequently asked question responses. Or in the case where we get involved, we've seen an 86 per cent increase in the number of cases like this, where people have reached out for us, looking for help because they just can't get it sorted when they're dealing with these digital platforms who have no person to speak to. And some of the help that they offer is not helpful at all. 

Deb Knight

And Bruce, what are your thoughts on the definition of what a small business actually is? Do you back the Chamber of Commerce in the push to increase the number of workers from 15 or fewer to 25?

Bruce Billson

The Chamber's come out because this is specifically as it relates to employment arrangements. You'd be aware, and I think we've spoken before, there's dozens of different definitions of small business, and that's the bane of a lot of small businesses life. But in relation to workplace relations, that definition applies because it recognises that some of the complexity, some of the heavy compliance obligations in our very complicated workplace relations systems are really hard for small businesses to climb over.

And so, there's certain accommodations for smaller firms where there is complexity or difficulty complying purely because of the complexity. That regime's got more complex of late, and I can understand why people are saying it's harder and harder for smaller firms to meet those requirements. Whereas, for a big corporate with an HR department, maybe that's a different story. 

Deb Knight

Bruce, always good to talk. Thanks so much. 

Bruce Billson

Deb, take care and best wishes to your enterprising listeners.

Deb Knight

Small Business and Family Enterprise Ombudsman Bruce Billson, there for our regular Let's Talk Business.