45% Of Small Business Owners In Australia Contemplate Closure Due To Regulatory Burden: ACCI Survey
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Nearly half of small business owners across Australia have considered closure or exit in the past year, as per a survey conducted by the Australian Chamber of Commerce and Industry (ACCI).
The regulatory system and the complex trading environment are the significant challenges faced by the business owners, with the situation being worse in places outside capital cities.
According to the survey, at least 45% of the small business owners have contemplated shutting their doors, while the figures rose to a staggering 57% in the places outside the metros. The key triggers behind the drastic decision were inflation, rising borrowing costs, and uncertain consumer spending, compounded by a significant regulatory burden.
The difficulties faced by small company owners have increased as a result of recent changes to industrial relations, such as the definition of casual employment and the right to disconnect. The impending revisions to the Privacy Act, which will impose stiffer fines for data breaches, have also increased small business owners' anxiety. The survey also found that only 4.6 out of 10 were prepared for these new requirements.
Andrew McKellar, CEO of ACCI, proposed streamlining administrative procedures to better support small firms in overcoming these obstacles, Smart Company reported.
"We've got to get to a situation where small business is able to get through that administrative burden much more effectively," McKellar told reporters in Canberra on Sunday. "We've got to overcome those sorts of hurdles."
The survey also underscores concerns about new privacy regulations, with many businesses feeling unprepared and facing challenges despite new training resources.
Concerns over the intricacy of the new privacy legislation were also shared by the Council of Small Business Organizations Australia. It has introduced Small Business Peak, a government-backed training platform that provides crucial direction and information, to assist firms in navigating these changes.
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