The new Government and SMEs

However, any changes to workplace relations laws (particularly unfair dismissal laws) must encompass the principles of flexibility productivity and fairness.

For this to happen, small business lobby groups must actively engage the new Rudd Government to ensure your key messages are heard.

Geoff Greer, regional general manager, nabbusiness

The new Labor government has committed to a wide-ranging program of business reform and deregulation. Be sure to monitor the changes closely, as there may be a raft of opportunities to take advantage of.

Labor has also signalled that it will give more attention to competition policy and the related issues of market share and the exercising of market power. The SME sector should monitor the respective legislation such as the Trade Practices Act for any favourable changes

This is a key time for business owners to ensure they have access to the best advice available to them. Understanding new opportunities in their market or industry enables business owners to act quickly and maximise any benefits from these changes.

Suzi Dafnis, general manager, Australian Businesswomen’s Network

As the Australian Businesswomen's Network (ABN) represents a community of over 20,000 businesswomen and female entrepreneurs, I took the question above to our membership for comment.

While there was an overall feeling amongst members that it was too early to be certain, the general consensus was one of concern about the impact of the new government on SMEs.

Overall, our members felt that the key impacts will relate to industrial relations. Members reported that the new government’s stance on unfair dismissal laws would impact negatively on business and employees, as it could result in SMEs hiring slowly and firing fast, increasing employment and training expenses, as well as disrupting operational activities.

Similar concerns were expressed about the 24-month parental leave entitlement, not only because of the employment and training costs, but also because an SME could have completely changed in two years, with a consequent change in the skills and experience required by the returning staff member. Respondents to our poll felt that this policy could in fact represent a disincentive for SMEs to employ women of childbearing age.

Labor’s policy on increasing SME access to the government procurement market was not felt to be a particularly useful initiative, due to the time consuming and costly process required to prepare and submit a response to tender while running an SME’s daily activities. In fact one member remarked that it was ‘useless’.

Potential changes to the Training Incentive Program were also noted as being of concern, in terms of the cost that may end up being borne by SMEs; and members also expressed concerns about a return to the high interest rates that were in force during the previous Labor government.

One member suggested we could expect to see increased government funding, incentives and programs related to innovation and green business, while another sought more leadership from our government in the areas of environmentalism.

Overall, not a positive response, but in the true entrepreneurial spirit, perhaps the perspective of the ABN could best be summed up in the words of one respondent—“I look forward to some turbulent times, but as SME’s are the backbone of this country, we will survive!”.