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NSW Government deserts SMEs, while other states continue to deliver

New Romans

Key Facts:

• NSW government scraps Business Connect programme during Small Business Month, despite previous studies showing $1.50 return on every $1 spent
• Service NSW Business Bureau remains available for NSW businesses, while other states offer various support programmes including Victoria's Small Business Bus and Queensland's Mentoring for Growth
• Western Australia, Northern Territory, South Australia and Tasmania all maintain free business advisory and support services for SMEs
• Business support remains crucial amid high insolvency rates, rising costs and ATO debt recovery efforts
• Government support services play vital role in supporting Australia's 2.5 million SMEs, which are the nation's largest employers

With NSW Small Business Month running throughout October, it’s quite ironic that it coincides with the state government’s scrapping of the Business Connect program – an initiative which supported tens of thousands of small businesses right across NSW.

 

Put bluntly, it is particularly bad timing. 

 

While the NSW state government’s decision to can Business Connect has been criticised as narrow minded and short sighted, there are at least resources still available to small business owners looking for advice or mentoring right across the nation, according to James Beeson, CEO of the nation’s leading invoice financing specialists, Earlypay.

 

“It’s a terrible shame the NSW government is closing a service which was providing a positive return on its investment through supporting the success of SMEs. The timing of the shutdown is really unfortunate given soft economic demand, stubbornly high business costs and an ATO that is determined to recover its outstanding tax debts. This is all contributing to stress for many SMEs, which is visible through the high levels of insolvencies.” Beeson says.

 

“Back in 2021, NSW Treasury commissioned an independent review into the Business Connect program and found for every $1 spent, it brought in $1.50 in benefits. Be that as it may, it’s now closed down which is a loss for the state economy that won’t be felt for a couple of years especially if the number of insolvencies continue to rise.”

 

Beeson points out all is not completely lost in NSW as SMEs can still access the Service NSW Business Bureau for free expert support. 

 

He states that further afield there are wide-ranging options in other states.

 

“Beyond NSW the other states are doing their bit for SMEs. Business Victoria for example operates the Small Business Bus which visits metropolitan Melbourne and regional Victoria as an 'office on wheels'.” Mr Beeson says.

 

Business Queensland’s Mentoring for Growth (M4G) program also offers eligible businesses free access to volunteer business experts who provide insights, options and suggestions relating to challenges and opportunities SMEs might be experiencing in their business.

 

Western Australia’s Small Business Development Corporation (SBDC) also offers a free of charge Business Advisory Service that connects SMEs with experienced advisers that have run, or are currently running, their own business.

 

According to the SBDC, their confidential advice includes offering practical solutions for SME owners whether they’re starting, growing or exiting their business.

 

The Northern Territory Government’s Business Growth Program offers eligible SMEs funding up to $10,000 for professional advice, services and systems. This is available to reimburse 50 per cent of the costs of eligible services provided by an approved service provider.

 

In South Australia, the state government’s Small Business Support Officers provide free one-on-one support for SMEs across the state. They can help with a range of services including navigating government support programmes, connecting with resources within your local area, talking through available grants and funding as well as uncovering tools and resources.

 

While in Tasmania, the Tasmanian Business Advice Service provides up to five hours free and independent advice for established Tasmanian businesses to help them run and grow their business.

 

Beeson says most of these programs are just one of a suite of resources state government offer SMEs “as well as an array of services offered by the federal government”.

 

Beeson’s advice to small business owners is to do their research on what programmes they might be eligible for and to realise they’re not alone if they need assistance in making their business work.

 

“Australia’s SMEs are the nation’s largest employers and play a major role in driving the economy forward and this is mostly well-recognised by state governments as well as the federal government,” Beeson says.

 

“While a lot more can be done when it comes to reducing the regulatory and taxation burden on the nation’s SMEs, governments do offer a range of good business support services that can assist in navigating some of the challenges SMEs must confront.”

 

Beeson explains Earlypay have been assisting the nation’s small businesses overcome their cash flow challenges for nearly 25 years, and he firmly believes government plays a key role in ensuring the nation’s 2.5 million SMEs are healthy because “if they’re doing well, then the economy will follow”.

 

 --ENDS-- 

About us:

Earlypay is a leading provider of working capital finance to Australian SMEs with its invoice finance and equipment finance products.

Earlypay’s invoice finance helps SMEs bridge the cash flow gap between issuing invoices and receiving payment from customers by providing early payment of unpaid invoices. Earlypay also provides equipment finance to SMEs to assist with capital expenditure. 

 Earlypay has been supporting Australian SMEs since 2001 and has built a trusted legacy of delivering reliable, flexible and innovative working capital finance. 

 

Contact details:

Anthony Spargo 

 New Romans

0400 688 525 

 [email protected]