Small business owners need to get a lot of work done before they can start growing in the market, according to research.
Key points:”Small business owners are often under-motivated and under-informed about how to build their business”Many do not realise the importance of being an independent business ownerThe research also found there are a number of obstacles to starting a small businessBusiness growth has been slowing in Australia for years, with only a third of Australian households having a job.
But a study published this week by Australian Business and Industry Association (ABIA) says it is time to make a big change.
“Small businesses are often undersmotivated by their managers and underinformed about the value of their skills and skills-based investments,” the report said.
“While we have good data about the impact of these trends on business activity, we still need to make sure we have the right tools to enable small businesses to grow.”
Key pointsThe ABIA said the main barriers to growing are:”the lack of skills and experience”There are a range of issues that small businesses face, including: “lack of knowledge about the business”and “under-motivation”It also said there are many opportunities for new businesses to take on new roles, which are currently under-funded by government.
“For example, there are opportunities for independent contractors and people who are not self-employed to work for businesses,” the ABIAs report said, noting there are also “few opportunities to invest in a business” for people with skills and knowledge.
“We are working with business owners and other stakeholders to provide a framework for businesses to build an agile business, to grow their businesses and to build skills,” it said.
The report said the lack of business growth is a major issue in Australia, with “a significant proportion of small business owners not having enough time to develop and implement the skills they need to succeed”.
“This is often a result of a lack of knowledge of how to develop the business, the structure and structure of the business and the role and responsibilities of the person running the business,” it added.
“Businesses often do not have the knowledge or skills to effectively operate a business.”
Key point:The ABAI said small business growth has not slowed in Australia in recent yearsThe report also said it was time for governments to step up their efforts to support small businesses.
“There is a need to increase the number of jobs available for small businesses, and there are some steps we can take now to ensure that these jobs are available and are accessible to everyone,” it stated.
“To that end, ABII is proposing to create a national business growth plan to enable government to support businesses by increasing investment in their skills, education, and infrastructure.”