In a horror report from an ACCI survey, pressure on SMEs is having a devastating effect, particularly in rural areas. Sign, Display and Graphics businesses are no exception since if general SMEs close down, it means no shop fit-outs, no window signage, A-Frames, brochures, wrapped vehicles and so forth. ASGA President Mick Harrold steps up to the plate with commentary.
If the SME economy suffers, so does Sign, Display and Graphics
A recent survey by the Australian Chamber of Commerce and Industry (ACCI) has found that almost half of small business owners (57% in non-urban areas), have considered closure in the past year, with rising input costs, skills and worker shortages, and increased government regulation all taking their toll.
The 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% of small business owners have considered closing or leaving in the past 12 months.
- 82% of small business owners said that red tape is having a major or moderate impact on their business.
- 50% of respondents said they were spending more time on red tape than 12 months ago.
- 40% said they will make a reduced or a significantly reduced profit this financial year compared to the previous year.
- Over 50% said their greatest expense was overcoming skills and worker shortages.
Mick Harrold, President of the Australian Sign & Graphics Association (ASGA), agrees, saying the findings were concerning and in
ACCI's McKellar 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.
The backbone of our ecomony is fractured
“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,” says Harrold, adding:
“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.
ASGA President HarroldHarrold continues: “There is no question that the regulatory environment continues to become more complex and confusing every year. 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. Administration and compliance obligations can quickly eat into profits; conversely, saving time on administration and compliance can boost productivity and profitability.”
Harrold believes that, with a lack of resources and support being provided by government, the roles 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,” Mick says, adding that all businesses in the sector are welcome to ring at any time, or email mande@signs.org.au, 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.”
Essential reading
Read the full ACCI survey (PDF download 7MB) HERE
Access the ACCI survey fact sheet (PDF dowlload 976KB) HERE
Find the full list of ASGA Member Benefits HERE
