As we enter the “moving forward” campaign of the Gillard Government and the “direct action” commitment of the Abbott advance team, SMEs need to present a consistent charter for change to the incoming administration. Cost cutting is not going to overcome the potential for a significant slowdown and double dip return to turbulent times with rising energy prices and declining business to business opportunities for smaller companies.
As we have seen in the mining industry negotiations with the new PM, concerted and coordinated action is necessary to win any attention, especially once Gillard commits to spending nothing more than Swan included in his pre-deal Budget. The emphasis on debt reduction and creation of future surplus budgets leaves little short-term room for new initiatives such as corporate tax reductions for the business sector and mental health expenditure for the household sector.
The next month will set the foundations for the political agenda of the incoming government and this represents the last chance to gain commitments from candidates that will encourage smart companies to expand their enterprise and invest for the future. Treasury inevitably looks to the big end of town for large tax grabs and regards small business as at most a top up of the fiscal coffers and a way to reduce the burden of too many job seekers. So now is the time for smart companies to find out the name of all of the local candidates (from all parties) and get their pledge to a charter for change in the way that the bureaucrats regard their business.
Get them to sign up to introduce a plan to support smart companies:
1. Genuine reductions in regulatory red tape – not just reviews and more rules.
2. Incentives for innovation and market entry research initiatives.
3. Halving (or replacing) payroll taxes and disincentives to take on new staff.
4. Training allowances for start up enterprises via tax credits for business development.
5. Creation of a full Cabinet Position for the Small Business Enterprise Administration.
6. Faster roll-out of the high sped broadband network and business enterprise networks.
7. Provision of multi-lingual, offshore business centres for export expansion.
8. Guarantees of 25% encouragement of SME shares of government tenders.
The incoming federal government will face the real prospect of a fast boom and a steady decline in the mining and agriculture sector contributions to the economy after an inflationary surge in the domestic economy. In the last boom, the nation failed to invest in nation building capacity, leaving more than half its funds to come from a quarry/farm economy as the tourism and education props begin to come under pressure from a stronger dollar and international uncertainty. Unless there is a strong push for elements of the charter for change, we will go back into the nation’s traditional boom and bust cycle.
Already we are seeing the slowdown in the rate of international recovery with job creation in Europe and the States facing a five-year best-case window to regain pre-GFC levels. Australian enterprises must be encouraged to use this window of opportunity to expand into the offshore service industries taking local ingenuity into new spheres of business partnerships and agents.
Developing the links that exist naturally as a result of our immigration programs and our multi-cultural identity provides a path to move forward towards the confidence and optimism sought by the PM and to boost the capacity for small business development encouraged by the alternative administration. But only if both sides make the commitment to the charter for change.
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Dr Colin Benjamin is an entrepreneurship and strategic thinking consultant at Marshall Place Associates which offers a range of strategic thinking tools that open up a universe of new possibilities for individuals and organisations committed to applying the processes of innovation, creativity and entrepreneurship.
Email dr.colinbenjamin@marshallplace.com.au
Contact: CEO Dr Jane Shelton, Phone +61 3 9640 0099
Smart Company is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.
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