A new report from the Council of Small Business Organizations Australia (COSBOA) illuminates the critical issues facing Australia's 2.5 million small businesses; which contribute a third of the nation's GDP. Rising costs; skill shortages; and regulatory pressures are testing their resilience; yet the report identifies strategies to foster growth and sustainability.
High operational expenses; including energy; rent; and wages; are a significant concern; and many businesses struggle to break even. Targeted policy interventions such as rent relief; energy efficiency programs; and quicker payment terms are proposed to address the cost crunch.
Labour shortages remain a barrier to growth; prompting calls for streamlined migration processes and enhanced training initiatives. The report also highlights opportunities in renewable energy and artificial intelligence (AI); though financial and technical hurdles must be overcome.
Cybersecurity is growing; with nearly half of cyberattacks targeting small businesses. Awareness programs like Cyber Wardens aim to bolster digital resilience.
Additionally; due to complex procurement processes; small businesses face challenges accessing government contracts. Simplified systems and increased outreach are recommended.
The report argues that by addressing these challenges; small businesses can strengthen their role as the backbone of Australia's economy.
A copy of the report can be found at the following link: https://www.cosboa.org.au/post/navigating-critical-challenges-cosboa-and-commbank-launch-2024-small-business-perspectives-report
"If you're concerned about any specific areas of cost management; reach out for a chat. Most businesses know there are savings within their cost base; but often; they don't know how to get those savings; or it's too time-consuming."
Grant Morrow Principal Consultant +61 415 203 575 gmorrow@eragroup.com
