27th June, 2024
Today, Thursday 27 June, marks the annual United Nations International Micro, Small and Medium-sized Enterprises (MSME) Day, and we’re recognising the substantial contributions of MSMEs and sole proprietors to the global economy.
The day is a timely acknowledgement of all of Australia’s 2.5 million small and medium sized enterprises (SMEs).
In particular, we’re shining a light on micro businesses with 1-4 employees, which make up 27% of the nation’s business community.
MYOB CEO Paul Robson says micro businesses are a little understood subset of Australian SMEs, with specific needs to consider as their operations grow.
“Making the jump from sole trader to micro business is significant,” he says.
“When you hire that first employee, it’s a huge milestone and a moment that shows the business is taking flight. It’s an extension of trust bringing someone else on board to help realise your business ambitions.
“What these businesses don’t always fully appreciate is that this milestone opens a gateway to new compliance requirements and business complexity not previously faced.
“Help is available but micro business owners may not be aware of the assistance on offer.”
The latest MYOB Bi-Annual Business Monitor survey of 1,047 SMEs found more than half (52%) of micro businesses did not take advantage of 2023-24 Federal Budget incentives.
“The economic environment is posing challenges across the board, particularly to smaller businesses less able to withstand shocks,” Paul says.
“Micro businesses should ensure they’re taking advantage of government support, such as the energy efficiency incentive or the instant asset write off which has just been legislated for assets first used or installed ready for use between 1 July 2023 and 30 June 2024.”
Bruce Billson, The Australian Small Business and Family Enterprise Ombudsman (ASBFEO), says International MSME Day is an opportunity to acknowledge and celebrate the nation’s small business community.
“Almost 98 per cent of businesses in Australia are small businesses – some 2.5 million who generate almost $600 billion of economic activity accounting for 33 per cent of our nation’s GDP and provide jobs for 5.36 million people,” Mr Billson says.
“MSME Day is a terrific opportunity to thank small and family businesses for their contribution to our economy and our country and to support them by being a kindly customer – patient and understanding, with good and generous intent.”
“These are great people in plain sight, working every day to delight customers and energise enterprise and we salute them.”
Also, with small and medium-sized enterprises a vibrant part of every community, this International MSME Day is a reminder for consumers to support their local businesses.
The ASBFEO was established in 2016 to help make Australia the best place to start, grow and transform a business.
They do this by assisting and advocating for small businesses and family enterprises.
Also, ASBFEO provides advice and research to improve policies, access to dispute resolution information, and mental health support.
Helps SMEs to resolve disputes involving other businesses or Commonwealth Government agencies and avoid costly formal legal avenues.
Undertakes a number of different activities to advocate for small businesses and family enterprises to improve policies affecting them.
Ensures that businesses know about ASBFEO’s work and other supports available for small business and family enterprises.
This team also chairs a National Small Business Media Communications Network. This Network brings together national and state government small business communications counterparts to share insights and collaborate on SME matters.
Brings together data and insights to celebrate the important contribution of SMEs and highlight the conditions they face.
The team releases regular updates on the Small Business Data Portal and works with stakeholders to build an evidence base.
Click here for more information on how the ASBFEO can help your business.
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.