A new survey from business management platform MYOB revealed that 94 per cent of Australians believe that supporting small business will aid Australia’s economic prosperity and would like to see them prioritised in the Federal Budget.
The research found that one in five respondents (made up of 800 consumers and 200 SME owners) believe government assistance for the sector is the most important factor in Australia’s economic recovery. However, 39 per cent are uncertain as to whether the Budget will deliver for SMEs.
MYOB Chief Employee Experience Officer, Helen Lea, said the data shows Australians have economic recovery – and the role SMEs will play in this – front of mind, pointing out that 57 per cent of respondents do not believe the economy is in recovery yet and 63 per cent see productivity as a real problem for Australian businesses.
“SMEs account for over 90 per cent of Australia’s businesses, so ensuring they’re achieving optimal results, especially in the face of inflation, supply chain disruption and cost of living pressures will be vital for economic recovery,” Lea said.
The survey also noted that respondents hope to see that the Budget would include tax reforms (49 per cent), incentives for apprenticeships and vocational training (42 per cent), financial incentives for hiring staff (39 per cent), cutting of red tape (37 per cent) and incentives for digital training (31 per cent).
When asked what could help with productivity specifically, SME owners said they would like to see support for upskilling (55 per cent), free tertiary education for in-demand professions (53 per cent), and increased opportunities to help women re-join the workforce after having children (48 per cent).
In addition, SMEs are facing productivity issues with labour shortages and employees on leave due to illness, with 43 per cent of small businesses experiencing staff shortages and MYOB’s Small Business Leave data noting that leave balances in SMEs peaked at 35 per cent above the pre-COVID baseline in August.
“Digital capabilities are closely linked to productivity, helping SMEs save time, money and improve accuracy in their business operations,” Lea said. “Digital tools can help business owners with overall visibility across their business and in maximising productivity, helping to ease many of the pressures we’re currently seeing – be it labour shortages or other operational challenges.”
However, the survey revealed that 40 per cent of SME respondents are unable to use these digital tools due to challenges accessing a stable internet connection.
“Upskilling the workforce and the confident and decisive use of digital business tools is at the crux of boosting productivity and growing the economy,” Lea added. “MYOB modelling shows that every dollar invested will generate a $25 return to the economy, including through productivity gains and employment.”
Cyber security awareness is particularly acute among SMEs, with two in three small-business owners saying they need to spend more to protect their business. Of those who do not plan to spend more, 38 per cent say it is the cost of cybersecurity protection which is stopping them from making the investment.
“[The] Budget is an opportunity for the Government to reinforce its commitment to small businesses, giving them confidence to contribute to our economic recovery,” Lea said. “Legislating the Technology Investment Boost and the Skills and Training Boost, and extending both measures to EOFY 2024, would provide certainty for SMEs to make the investments needed to protect their business and adopt more digital tools.
“We know the economy stands ready to benefit from these measures and look forward to learning what the new Government will deliver for the nation’s SMEs,” she concluded.
