family enterprise landscape Dr Craig Latham Deputy Commissioner - - PDF document

The small business and family enterprise landscape

Dr Craig Latham Deputy Commissioner

IPA Victoria Congress 3 March 2016 RACV Resort, Torquay

• Only in Australia (soon in UK)
• Started in Victoria in 2003
• Distinct characteristics

– Access to information and education – Advocate to Government on behalf of small business – Investigation of complaints and behaviour – Facilitating resolution of disputes

Small Business Commissioners

Influencing behaviours

• Poor contracting practices and management skills
• ASIO building report
• Government as a Model Business
• All Government agencies act as a business at various times.

It is reasonable to expect that they should set the standard for others to follow

• Commonwealth Contracting Suite: Simplified procurement

contracts

• Colour-coding to clearly highlight the rights and obligations
• f each party
• Dispute Support
• Easy step-by-step low cost access to dispute resolution

Future direction

Transformation of the Australian Small Business Commissioner into a strengthened Australian Small Business and Family Enterprise Ombudsman that will:

• Advocate for small business and family enterprises
• Assist small business as a concierge helping them to find the best

avenue for dispute resolution The newly appointed Ombudsman, Ms Kate Carnell, was announced by Minister O’Dwyer on 1 February 2016. The new ASBFEO will open for business on 11 March 2016.

Scope of the ASBFEO

A business is a small business at a particular time in a financial year if: a) It has fewer than 100 employees at that time; or b) Its revenue for the previous financial year is $5 million or less A small business operated as a family enterprise is a family enterprise

Advocacy

• Research and inquiries into legislation,

policies and practices affecting small business and family enterprises

• Commenting on proposals affecting

small business and family enterprises

• Advice to the Minister
• Contribution to other inquiries
• Promote best practice in dealing with small

business and family enterprises

• Information-gathering power

Assistance

• Respond to requests for assistance from

small businesses and family enterprises

• Refer disputes to the Commonwealth, state or

territory agency that can best deal with it

• Work cooperatively with existing services

(No duplication)

• May recommend alternative dispute resolution
• May publish failure to use dispute resolution

process

• Information gathering powers

“Each and every small business, family business or start-up is at the heart of the great Australian story

• f enterprise.”

Minister O’Dwyer’s address to the Australian Chamber of Commerce and Industry, 8 October 2015

Minister Kelly O’Dwyer

Small 96.0% Medium 3.7% Large 0.3%

Business numbers

Small 34% Medium 23% Large 43%

Output

Small 43% Medium 26% Large 31%

Employment

What is a Family Enterprise?

Family enterprise is usually characterised by:

• Involvement of multiple family members
• Intergenerational transfer of ownership or control
• Control by family members
• Significant ownership by family members
• Family members involved in management

Recognising yourself as a family enterprise – Eg. farmers seeing their business as a ‘farm’ or ‘family farm’ – a not a small or family business Lenses include – – Business (business plan / management structure & meetings) – Family (family charter / family council) – Ownership (board and shareholder meetings)

Understanding family enterprises

Family enterprise challenges

• 80% of family enterprises experienced conflict

between family members in the last year

• Conflict between family members can affect both the

business and family relationships

• 37% view family issues as equal or

greater to “business-only” issues

• Governance, employment and

succession are big issues

Helping family enterprises

• Assistance is available from several sources
• Australian Small Business & Family Enterprise Ombudsman
• business.gov.au
• State/territory Small Business Commissioners and business web

pages

• Family Business Australia & industry organisations
• Professional advisers
• Encourage family enterprises to professionalise and plan
• Provide advice and support

• Governments and business both

impose rules and requirements.

• Australians work for 8 weeks/year

just to pay for compliance costs.

• 16% of resources go to complying

with rules and regulations.

• 1 in 11 employed Australians now

works in the compliance sector.

Red-Tape

2014 report by Deloitte

Business compliance costs in Australia: $249b/year

$155b self-imposed rules $94b government rules

• $2.45b in annual red-tape compliance cost savings

– Needs real improvements… – It’s about genuine and timely consultation – Regulators implementing with common sense, empathy & respect (adopting a risk-based approach)

• Some ways that work

– Federal Regulatory Agency Group improves regulatory coordination & collaboration on small business matters (ASBC, ASIC, ACCC, ATO, FWO) – Fix-it squads deal with practical issues for small business – Focus on smarter regulation

Reducing Red-Tape

Prepare – Get advice to understand your rights & obligations Pay and get paid – set payment terms & conditions at the outset Patch up – Settle disputes quickly and use alternative dispute resolution before legal avenues Plan – Use a business plan and keep it alive Professionalise – You get the customers you deserve Participate – Join an industry association or business chamber Position – Get connected, network, mentor…

Tips for small business

Energy is a major expense for small business It’s key to know its cost and act to reduce –

• Every degree of heating above 20 degrees adds

up to 10% to energy bills

• Laptops can save 80-90% of the energy cost of a

desktop

• Switching off equipment on standby can reduce

your electricity bill by up to 10%

• Lighting can account for up to 25% (or more) of

electricity bills & there are significant savings in moving to efficient globes in terms of cost / life

Free guide @ http://EnergyCut.info/SME-book

Slash energy costs

Influencing the Quality of the Business Environment

Every participant has scope to ‘lift their game’

• Small businesses
• Big businesses
• Industry & professional associations
• Media
• Academics
• Regulators
• Government agencies