INTHEBLACK August 2024 - Flipbook - Page 53
SELLING THE DREAM
In many developing countries,
entrepreneurship and running a small
enterprise have long been seen as
a pathway to financial success.
The e61 Institute’s Michael Brennan
says economies in Asia and the US attach
greater prestige to being an entrepreneur
– something that Australia could do well
to adopt.
In Australia, getting a job with a large
company with a healthy salary and
superannuation packages has traditionally
been the go-to move for many graduates.
“In Australia, socially and culturally being
part of a failed business carries greater
stigma than it does in a highly entrepreneurial
of productivity growth it enjoyed between
1960 and 2020.
However, if productivity numbers
end up far below the forecast it will result
“in an environment where the growth in
living standards is materially slower than
that to which Australians have grown
accustomed over the last few decades”,
Brennan adds.
PAIN POINTS
There is also the question of what the
Australian Government can do to support
small businesses.
Dr Andrew Leigh, assistant minister
for competition, charities and treasury,
and assistant minister for employment,
says it is essential for any country to have
a healthy mix of large and small businesses.
culture such as the US. That is not an easy
thing to turn around,” Brennan says.
A lack of housing wealth among young
Australians today compared with previous
generations means they lack the asset
base and financial buffer to borrow for
business or to fund growth, he adds.
Brennan expects demand for unsecured
credit to prompt the rise of new providers and
products who use artificial intelligence and
data tools to identify credit-worthy applicants.
“Funding is a perennial challenge for
smaller businesses, but technology will
often find a way if there is a business
opportunity for smart people to get in
there and provide a solution,” he says.
Leigh says the Albanese Government
is seeking to ease some of the pain points
for small businesses by:
• streamlining tax-compliance rules to
reduce time spent on tax returns
• addressing anti-competitive practices in
certain sectors to deal with the imbalance
in contractual bargaining power between
large buyers and smaller suppliers
• supporting with their energy transition
through incentives that encourage
investment in better energy efficiency
and storage
• assisting with cyber security and digital
capabilities.
In terms of cyber security, Leigh says
the government-sponsored Cyber Wardens
program, which helps prevent digital threats
through staff training and greater risk
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