Government fails to meet small business demands in budget

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Local small businesses have rated greater opportunities for growth, additional tax incentives and a focus on delivering flexible employment as key areas they’d liked to have seen on the 2012 budget agenda.

According to a Regus survey of over 400 businesses, SMBs were hoping the Government would meet their demands in these areas to help spur growth and spread risk, given today’s uncertain economic climate.

And that’s not all; half of the businesses surveyed said they’d like to see the Government provide incentives for them to invest in new graduates, suggesting local businesses are willing to support the skills development of the next generation of young professionals.

According to Regus regional vice president William Willems, some smaller businesses will be pleased with the tax off-setting measures announced in the budget – but not all will be satisfied.

“This will help to encourage SME investment into innovation and drive competition. However, many businesses are disappointed they’ve missed out on further measures, including a reduction to the company tax rate,”

Willems also said the survey findings “will help to encourage SME investment into innovation and drive competition” as the small business community are looking at ways to save on costs and increase their bottom line.

Businesses claim implementing a better work/life balance for employees equates to greater productivity as over two-thirds of Aussie firms reported higher profits as a result of flexible work practices, increasing productivity and morale, at the same time, the study found.

“Businesses taking a flexible approach are also building agility into their operations, enabling them to adapt to change and spread risk,” said Willems.

The final key focus area in the agenda list was the development of a digital economy, as businesses report a keenness to explore new markets and improve their online presence.

“Businesses have also shown an eagerness to take advantage of the benefits of the digital economy. But in order to tap into new markets and build a stronger online presence, firms say that the development of the digital economy should form a stronger budget focus,” Willems added.

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