A FAIR GO FOR SMALL BUSINESS
29th November 2018
Author: Carl Valentine
Last week I was lucky enough to attend the Business Council of Australia’s annual dinner in Sydney.
Australian Prime Minister Scott Morrison used the event to outline the Federal Government’s new policy whereby Australia’s largest 3,000 business will be required to pay small-medium operators within 20 days as part of pre-qualification to work on any future Federal Government contracts.
The timing of the announcement was interesting, given most of those in the room would have fallen into the “big business” category.
As a North Queensland based small business operator, the announcement was welcome news and said to me that small business will be one of the key battlegrounds in which the 2019 Federal Election is fought.
The bulk of our client base of 550 businesses and family groups at PVW Partners sit within the small-medium business sector. Any initiative which helps those operators to grow and proposer is certainly welcome.
It got me thinking about what more PVW Partners can do in this space, from the context of both a small business operation, and also to support other small business operators.
Cue the Business Council of Australia’s Australian Supplier Payment Code.
The Australian Supplier Payment Code is a fantastic initiative aimed at supporting small business, with signatories committing to pay suppliers within 30 days of receipt of invoice.
It also encourages businesses to apply technologies and practices which will speed up invoice reconciliation, through systems such as online portals and electronic invoicing.
As any small business owner will attest, cash flow is king, and this initiative is about supporting prompt, on time payment, which is crucial to the day-to-day operations of small business.
A reliable cash flow and stable working capital allows small business operators to put that money back into their business, into employment opportunities and into the local economy which provides significant benefits to our community as a whole.
It also enables those businesses to in turn pay their suppliers in a timely manner- everyone benefits from on time payments!
I applaud the Australian Business Council and the Council of Small Business Australia in getting this excellent initiative up and running and have since written to more than 800 North Queensland business operators in the hope they’ll sign up too.
North Queensland is a strong and resilient community that has undoubtedly faced several years of economic hardship; this initiative provides another avenue in which we can rally together, locals supporting locals.
As a small business owner, I know just how crucial on time payment is to the overall success of an operation. In some instances, it truly can make or break the success of a small business.
Small business is the engine room of our economy and it is imperative operators are given a fair go. It’s fantastic to see their interests being put so firmly in the spotlight.
I encourage all other leaders in regional Australia to sign their business or organisation up to this code and do their part to support other businesses in regional Australia.
Businesses wanting to sign up to the Australian Supplier Payment Code can go to www.bca.com.au