Small Business Ombudsman here to help

The goal of the Australian Small Business and Family Enterprise Ombudsman is to help ensure Australia is the best place to start, grow and transform a small business.

“It’s not our gift to guarantee any business will be a success but it is our mission to make sure no one fails because they didn’t know about something that would help,” says the Ombudsman, Bruce Billson.

“We do this through our assistance function and our work showcasing ‘better practice’ among smaller enterprises and those dealing with them. We also provide advice to the Australian Government and regulators.”

Since being created seven years ago, ASBFEO has helped small businesses resolve over 40,000 disputes with other businesses or government agencies, outside the costly legal system.

“Small businesses are doing it tough yet continue making a massive contribution to our nation and our communities. These are great people in plain sight, and we see them everywhere, every day,” Billson said.

ASBFEO have a range of checklists, resources, tools and guides to help small businesses on our website.

“Small and family businesses make a remarkable contribution to our economies and communities. Our 2.5 million small businesses employ 5.36 million people — 42% of private sector jobs. And generate 33% of GDP, bringing livelihoods and vitality to all corners of our continent.

“But in 2006 the sector employed 53% of private sector jobs and contributed 40% of GDP.

“This worrying trajectory shows we need to do more to energise enterprise.

“We need to get the risk and reward balance right, ensuring small business is an attractive option for people, then create a supportive ecosystem to give enterprising people the best chance to be successful.”

Statistically, across the board, the average small business owner is a self-employed man, aged 50, who works full-time and earns below the average full-time wage. Yet that is far from the full story. Female ownership is trending up and now accounts for 35% of small business owners.

But small business owners are getting older. Nearly half are aged 50 or over and just 8% are under 30. That’s half the peak for this age group of 17% achieved in the mid-1970s.

“We need to replenish and nurture the next generation of entrepreneurs, value self-employment and encourage and enable smaller enterprises and the livelihoods they make possible,” Billson said.

“Owning a small business can be a hard slog and is not always as rewarding as people hope.”

“With modest incomes, tight margins and increasing costs, trusted advice is vital. That’s where we can help,” he said.

“Two out of every five of our cases relate to payment disputes. Cash flow is the oxygen of enterprise, yet too often big businesses or government departments are too slow to pay. 

“We have seen a 20% increase in calls to our helplines over the past year from small businesses struggling to manage their debts.

“We also champion the need for right-sized regulation. A small business is not a shrink-wrapped version of a big business with a compliance and HR department. The reality is a time-poor business owner dealing with frequent changes to workplace and taxation laws, and managing privacy and cyber security issues.

The Tax Office has extraordinary powers and Mr Billson said one of the ASBFEO’s services is a Tax Concierge Service allowing a small business that objects to an assessment from the ATO to get an independent reality check of the viability of their case, before spending time and money.

“We ask them to put a $100 payment on the table and we’ll fund the rest of a one-hour consultation with an experienced small business tax lawyer to see if you’ve really got a case and then help further.”

Billson also urged small business owners to look after their mental and financial wellbeing.

“When you own a small business, it is just as important to spend time working on your business as it is to spend time working in your business,” he said.

“For small and family business owners, their identities are interwoven into their business and in many cases they have put their family home on the line to build up their business, which amplifies the emotional challenges. 

“We aim to put the wind in their sails, not in their face.”