June 27, 2019

Small Business, Big Impact

Happy Micro, Small and Medium Enterprise Day! This UN-led initiative to recognise the contribution of the little guys to the global economy is about celebrating the grunt of the little guy. There are just over 2 million small businesses in Australia, which accounts for 97.4% of ALL businesses in this country. Small business accounts for 35% of our Gross Domestic Product and MSME’s are responsible for 44% of all private sector employment.

This is the last time we will be writing this financial year, so a very happy new year to all you bean counters out there. The fiscal year shifts the calendar 180 degrees and for anyone running both a small business and a small family, the common sense of separating the school year and the financial year is a veritable lifesaver.

Can you imagine ‘getting through the holidays’ as well as preparing end of year financial statements, conducting stocktake, rounding up debtors and paying off creditors, trying to remember anything you’ve bought or sold to account for any capital gain or loss, completing payment summaries for any team members, lodging your own and any business income tax returns, its also a normal quarter so there is all the business activity that have to be reported for taxable payments, and superannuation needs to be paid. Plus it’s business as usual. 

Oh, and it is the winter school holidays, so there is that. Mark Bouris has recently created a small business advocacy platform and the tagline that there is ‘there is no such thing as a small business’. And I kind of get where he is going with that – the turnover, headcount, premises might be ‘small’ BUT nothing that a small business does, or small businesses do collectively, should be overlooked as ‘small’. Because it does get overlooked. 

Xero, a cloud-based accounting solution that small business owners are pretty familiar with did a study to look at the relationship between big and small business in Australia. The study analysed 150,000 trade credit invoices issued from ‘small’ to ‘big’ business and found that on average, these were paid 23 days late and meant that small businesses were carrying the credit crunch of the delay – which was something to the tune of $115 billion.

Our community in Byron and Northern Rivers shire has a proud small business tradition and people come from the world over for exposure to our talented cohort of artisans and producers. 

With all the preparations in play over the weekend before the end of financial year abacus comes out, let’s spend the next few days, spending. Specifically in the shops and on the goods and services that our locals create, in there own small way and by their own small means, but to no small end.