Free trade, mentoring, finance improvements pushed for small business at CHOGM

Small- and medium-sized businesses need widened access to free trade, better financing options, less red tape and more mentoring, the Australian Chamber of Commerce and Industry and Chamber of Commerce and Industry Western Australia says.

The business lobby groups have put forward proposals to the CHOGM (Commonwealth Heads of Government Meeting) leaders in Perth this week, saying the Governments could “demonstrate” their “relevance” by including a small business action plan in its economic and business dialogue.

They propose:

• Removing SME barriers to market access and lowering business entry criteria.
• More alternatives to provision of cost-effective SME business finance.
• Improved quality of regulation and removal of red tape.
• Mentoring programs aimed at building self-employment capacity.

Peter Strong, executive director of the Council of Small Business of Australia, says he welcomes the focus on SME issues, but the business bodies need to specify exactly what they are calling for.

Strong adds that “unfairness in contract laws” needs to be addressed, particularly contracts between small and big businesses and contracts relating to franchising and shopping malls.

“People end up in all sorts of trouble, and the ACCI hasn’t come out and supported changes there,” Strong says.

Strong says the most pressing red-tape issues for small business are paid parental leave and superannuation.

The plan comes amid calls from Air Asia X chairman Tan Sri Rafidah Aziz for the establishment of a website giving export-ready SMEs a forum to promote their products and establish trade networks, the Australian Financial Review reports.

“I also think at the Commonwealth level, we should have an action plan for SMEs. This would entail a comprehensive national profile of SMEs for each country and policy templates which could be set up, which each government could take and adjust according to their needs,” she is quoted saying at the associated Commonwealth Business Forum.

The forum, attended by lauded economists Professor Nouriel Roubini and Professor Edward Prescott, iron ore entrepreneur Andrew Forrest and BP Group chief executive Bob Dudley, has featured sessions on strengthening the SME sector and innovation and entrepreneurship.