It’s official – Swan admits “More small businesses will go under”

Despite his spin doctors’ trumpeting about parental leave, increased pensions and the other warm and fuzzy feel-goods in yesterday’s Federal Budget, Treasurer Swan finally came clean in his post-Budget address to the National Press Club yesterday. Amongst other dire predictions, he told his audience that “more small businesses will have gone under” before things improve. He then spoke about the government’s top priorities. Lending a helping hand to the small business sector didn’t make the list. In contrast to the opinions of many corporate analysts who are as far removed from the coalface as are Rudd and Swan, herVoice believes this Budget offers little more than a slap in the face to small business owners. Can anyone explain the use of a 50% rebate on capital investments to a small business owner who is in danger of losing their home because of the downturn? How will the rebate help Australians keep their jobs when most of the big ticket items that the rebate applies to are manufactured overseas? How will expanding the Export Market Development Grant program assist SMEs struggling financially to maintain production, let alone investigate new export markets? To make matter worse, both schemes can only be utilised by SMEs that have spare cash to invest on new capital items or offshore marketing. It can then take a year or more for those same SMEs to receive their rebate. On a more positive note, there are a few strategies SMEs can implement to stay afloat despite our government’s disdain for the grassroots business environment. Firstly, if you don’t have one already, develop a business plan. Then implement it. Continue your marketing. Build strong networks. Keep your cash flowing. Look for new niches in your market, to stay ahead of your competition. And above all, stay positive – despite the seriousness of the current situation, a recovery is forecast to commence in 2010-11. There is a light at the end of the tunnel. It’s just a shame that the small business sector will reach it despite, rather than because of our Federal Government’s short-sighted and populist fiscal policy.