45% of small business owners have considered closing according to ACCI Survey - ASGA responds

A recent survey by the Australian Chamber of Commerce and Industry (ACCI) has found that almost half of small business owners have considered closure in the past year, with rising input costs, skills and worker shortages, and increased government regulation all taking their toll.

ACCI, which is Australia’s largest and most representative business network, polled small business owners from around the country to get an idea of how they were faring in the current economic and regulatory environment, and the findings were concerning.

Among its specific findings, the survey results showed:

• 45 per cent of small business owners have considered closing or leaving in the past 12 months.
• 82 per cent of small business owners said that red tape is having a major or moderate impact on their business.
• 50 per cent of respondents said they were spending more time on red tape than 12 months ago.
• 40 per cent said they will make a reduced or a significantly reduced profit this financial year compared to the previous year.
• More than 50% said their greatest expense was overcoming skills and worker shortages.

Mick Harrold, President of the Australian Sign & Graphics Association, agreed, said the findings were concerning but were in line with the feedback the association is receiving from its members across the sign, display and broader graphics sector, echoing the comments of ACCI chief executive officer Andrew McKellar saying small businesses are ‘the backbone of our economy’ but are being ‘strangled by red tape’ and often neglected when it comes to policy making, legislation and regulations.

“SMEs make up a huge proportion of the businesses in our sector, and they are facing some of the toughest conditions we’ve seen for years, with input costs rising almost daily, a global skills shortage and an increasingly complex and confusing regulatory environment,” Harrold says.

“ASGA joins with other industry associations in calling on governments, policy makers and regulators to ‘do better’ for small businesses by focusing on initiatives which put downward pressure on the cost of essential inputs like energy, make it easier to create jobs and employ people, and reduce unnecessary regulation and red tape.”

While the full impact of the government’s changes to industrial relations law have not yet fully been felt, they were already a major concern for business owners who said they fear a damaging, or extremely damaging, impact – both from compliance obligations and the potential for unions to interfere with their decision-making.

“There is no question that the regulatory environment continues to become more complex and confusing every year,” adds Harrold.  

“While governments are always keen to introduce new legislation, they often do so without proper consultation with the industries that will be most affected, and without much effort to ensure impacted businesses have the information, resources and supports they need to understand changes and comply.

“For small businesses, time is quite literally money. Additional administration and compliance obligations can quickly eat into profits; conversely, saving time on administration and compliance can boost productivity and profitability.”

With a lack of resources and support being provided by government, Harrold says the role of associations like ASGA have become ever more vital, providing vital information, support and resources to help businesses address these key areas.

“At ASGA, our focus is to help businesses with their administrative, regulatory and HR functions so that they can concentrate on doing what they do best,” he says, pointing to a newly-expanded range of Member Benefits that includes legal, HR and WH&S resources, regulation and technical support, a comprehensive employment guide, and  templates for everything from employment and sub-contractor contracts to enterprise agreements.

“In addition, we have formed a partnership with MEGT to assist businesses in finding and employing apprentices and trainees, and with Australian Business Lawyers & Advisors to provide a full range of workplace relations and employment law advice via our dedicated ASGA Workplace Advice Line,” Harrold says, adding that all businesses in the sector are welcome to ring at any time, or email [email protected], to discuss concerns or issues.

“The sole purpose of the ASGA is to represent and support businesses across the sign, display and graphics sector. We will continue to build our range of Member benefits and resources, and to ensure our voice is heard on important issues which are impacting our members.”

Read the full ACCI survey here.

Access the ACCI survey fact sheet here.

Profile of respondents

The ACCI Small Business Conditions Survey collected responses from 378 businesses across Australia from 3 April to 24 April 2024