SMALL BUSINESS AND START-UPS

SMALL BUSINESS AND START-UPS

Individual initiative and the willingness to “give it a go” has long been a characteristic of Australian society.

I admire and appreciate the efforts of those who will build up an enterprise for themselves, whether it be a single person operation or one employing others. Small Business people are the backbone of our community and they deserve fair treatment and appropriate incentives to help them succeed.

We must support measures that assist the small business community and recognise its importance to Australia’s health and prosperity.

There are 840,00 small businesses in Australia at present. Now that’s a big voice that must be heard!

“…start-ups should pay NO TAX on the first year of trading”

Start-ups (new businesses) don’t receive much financial support at a time when they need it most. There is the New Enterprise Incentive Scheme (NEIS), which pays the equivalent of unemployment payments for the first year of a new business. This is to be appreciated and encouraged…but it is not always enough!

I believe that start-ups should pay NO TAX on the first year of trading and a reduced tax rate on the second year’s profit. This would give the business a step up and a better chance for survival. Such an initiative would have to be closely monitored and strictly policed to avoid manipulation and abuse. Any person would have only one opportunity to receive such tax treatment.

New Small businesses, especially young entrepreneurs, should be able to access a mentoring system that guides them through the process and gives help along the way until they are established, similar to NEIS.

NEIS (New Enterprise Incentive Scheme) is a system for people on Centrelink benefits which helps them to start their own small business. They begin by studying a small business certificate course and preparing a Business Plan for their business idea. Their idea must be for a new business and it can’t directly compete with any other businesses in their area.

“New Small businesses…..should be able to access a mentoring system that guides them through the process and gives help along the way until they are established, similar to NEIS….Baby Boomers could make ideal mentors “

The also receive mentoring during that first year and continue to receive their benefits for the first year of trading irrespective of the income they earn in their business.

Baby Boomers, who are looking for work, could make ideal mentors as they have a lifetime of knowledge and experience to share with new and young business owners and entrepreneurs.

Having started two small businesses myself and having advised and mentored many new and existing small business owners, I am very much aware of the challenges that owners face. The financial, emotional and mental strain can be overwhelming, especially if the business management is undertaken the wrong way and without proper training and guidance.

New Small Businesses should have access to low or no interest loans to help fund their enterprises. It’s great having $20,000 instance write-offs, but what good is it if you don’t have the financial resources to buy the assets?

Banks won’t lend if you don’t have security or a track record. Many start-up entrepreneurs are either young, coming off unemployment and/or have no assets or income to offer as security. This is where the no or low interest government loans would be hugely beneficial to success.

 “New Small Businesses should have access to low or no interest loans to help fund their enterprises