“Flame of ambition”: Ombudsman proposes Prime Minister’s awards for small business in 14-point plan

Would small business awards handed down by the Prime Minister, or formal accreditation for those who pay suppliers on time, help to re-energise the SME sector?

Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Bruce Billson believes so, including both proposals in a new 14-point plan to support the entrepreneurial community.

The plan arrives at a particularly tough time for the small business sector, which has been rocked by economic conditions, consumer spending downturns, and what advocates call an increasingly complex regulatory environment.

The list, released Thursday, suggests formal recognition from the Prime Minister for small business excellence could encourage Australians to take the plunge into entrepreneurialism.

Speaking to SmartCompany, Billson said the scheme could build on Prime Ministerial awards in areas like science, literature, and public sector management.

“We do need to generate and inspire the next generation, as well as give encouragement to those that might be contemplating where to go next with their livelihoods,” he said.

Reflecting on the stunning performance of Australian athletes at the 2024 Paris Olympics, Billson said the award system could highlight the tenacity and perseverance of local entrepreneurs.

“Australians are world-class in what they’re doing, and they’re delivering personal best performances as part of that endeavour… But it is a big responsibility, and I think it’s important to recognise that it’s not a walk in the park,” Billson said.

“It is with considerable challenges, and it’s not for everybody, but by sharing the stories of those that have made that journey, we lay the path out for others who can learn from their experience… sparking a flame of ambition that they can pursue through their own enterprise.”

From name-and-shame to celebration

Small businesses doing good things aren’t the only enterprises to deserve recognition.

Businesses of any size that fulfill their workplace obligations, stay on top of their tax requirements, and pay their small business suppliers within 21 days ought to earn ‘Good Business Pays’ accreditation, Billson said.

Australia already has a payment times reporting scheme that is empowered to name and shame businesses that lag behind on crucial payments to small business suppliers.

“We know that cash flow is the oxygen of enterprise, and we’ve seen through the payment times reporting register that the performance of some of our major corporates has been woeful,” Billson said.

But the ASBFEO advocates for more positive enforcement, to complement the existing reporting platform.

The name-and-shame aspect of the payment times reporting scheme is important, he added, but the Ombudsman asked: “if it’s not known and made aware in the economy and in the community, where’s the uplift for doing the right thing?”

Fair Work changes and card fee regulation

Day-to-day small business operations could be made simpler through new functions within the Fair Work Commission (FWC), specifically designed to guide small-scale enterprises through the tangle of employment rules placed upon them, Billson added.

The list calls for a dedicated small business commissioner and division within the FWC, capable of enacting “proportionate instruments, procedures, practices and protections.”

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“Would anybody suggest that some of the world’s most complex industrial relations [rules] and processes are designed for small employers?” Billson asked.

“No one would believe that.”

Engaging with the FWC can be a “terrifying” experience for small businesses genuinely trying to do the right thing, he continued, advocating for “support rather than sanction” and “education rather than enforcement”.

Enforcement to benefit small businesses could come from a different angle, with the 14-point list also advocating a crackdown on the fees paid by small businesses when accepting certain debit card transactions.

It should be mandatory for payment providers to charge the lowest possible fee during tap-and-go transactions using dual network cards — for example, cards that route through the Visa or Mastercard and eftpos systems — as the default option, according to Billson.

The cumulative cost savings of least-cost routing would greatly benefit small businesses, he argued.

“We are, we have been, we will continue” encouraging the Reserve Bank of Australia to take a firmer stance on least-cost routing, Billson said.

“It’s way past time for more decisive action. And that’s why we’re putting it on paper, as we’ve done for some years, and we’ll continue to advocate for this change.”

“This isn’t pie-in-the-sky stuff,” Billson continued.

“These are practical, actionable proposals that will make a difference”

Read the full list below:

1. Explore the potential benefits of a tax discount/offset scheme for new small business owners to allow them to keep more of their income to re-invest in their business during the critical first three years.
2. Focus on right-sized regulation, including how regulators and government formulate and administer laws, to help, support and enable small business owners, who do not have the resources of big business, meet their obligations.
3. Require every Cabinet submission, preliminary and formal regulatory impact statement and new policy proposal to include a small business impact statement.
4. Establish the Prime Minister’s Small Business Awards to recognise and celebrate excellence and inspire the next generation.
5. Give small businesses an affordable, effective and timely alternative to defend their own economic interest where fair trading protections and reasonable commercial conduct safeguards are infringed upon by creating a Federal Small Business and Codes List in the Federal Circuit and Family Court of Australia.
6. Give small business a greater chance to compete for government contracts by decoding the rules and practices that favour the ‘in-crowd’ of familiar, established and larger suppliers.
7. Make it mandatory for banks and other providers to charge the lowest fee for tap-and-go, dual-network debit card transactions as the default, saving small business around $1 billion a year.
8. Undertake urgent and decisive action to ensure that essential insurances for small businesses are understandable, accessible and affordable.
9. Ban unfair trading/business practices that distort competition and harm small business.
10. Create a dedicated Small Business Commissioner and Division within the Fair Work Commission to honour the ‘special circumstances’ of smaller employers existing workplace law are required to reflect and to oversee the implementation of proportionate instruments, procedures, practices and protections.
11. Require digital platform providers to implement clear, appropriate and standardised procedures for timely small business dispute resolution.
12. Honour businesses, big and small, who fulfil their workplace obligations to employees, meet tax reporting and payment obligations in a timely way and pay small business suppliers in under 21 days, with a ‘Good Business Pays’ recognition and accreditation.
13. Expand digital learning and practical support via enterprise-specific capacity building and technology deployment and focusing on business system and reg-tech solutions, information management (including cyber resilience, eInvoicing, data management, privacy duties and Consumer Data Right awareness) and practical generative Artificial Intelligence uses.
14. Develop a readily accessible and easily navigable central resource hub of ‘best of breed’ actionable information, supports, ‘how to’ guidance, programs and assistance developed by government and private sector specifically prepared for small and family business use.

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