Supporting productivity

Assisting business improve productivity, especially SME’s is a role for all three levels of government creating economic prosperity. So, it is upsetting that the Federal Government has canned the entrepreneur program (previously Enterprise Connect). While as an economic, I have concerns where programs such as this provide capital grants that can impact on the effective operations of a free market, and that the program effectively excluded a significant proportion of small businesses. That said, this program was an excellent program assisting SME’s improve productivity and access innovation capital. To lose this type of government support at a time when cost pressures have escalated and markets are increasingly under pressure from overseas competitive pricing and social mores, due to lower standards across a range of business operations such as cost if energy, labour costs, social and health environmental and safety standard.

These pressures are imposed on most sectors of our economy and make it difficult for small businesses to survive.

It would be great if government’s, state and federal realise that small businesses are the life blood of communities, as they support local social activities, employ locals and this has a flow on to the social fabric of our communities. It must also be recognised that these small businesses are the ones that grow into large businesses over generations.

A critical part of providing support for SME’s is understanding that the initial business structure (processes, procedures, systems and operational strategies) for future growth and expansion must be implemented in the early stage of setting up the business. This makes expansion and growth simpler and less stressful.

Ideally, getting good support from business consultants and advisors is a great way to identify business best practice early in business establishment. Organisations such as the Institute of Management Consultants (IMC), business associations such as AI Group, and all professional associations are a great source of information on consultants who might be able to assist.

Government support in this area can assist business gain the appropriate professional assistance to engage a consultant to develop these operational structures and productivity improvement strategies that will reduce business risk and improve profits.

If you want to have a discussion on improving productivity, contact me at john@ctocsolutions.com.au

Have a great week!