Australia’s economy will continue to underperform and small businesses will fall further behind their international counterparts without an urgent change of course, says CPA Australia.
The professional accounting body is calling on the next federal government to act decisively to boost small business innovation, competitiveness and productivity.
“Australia’s small businesses are held back by insufficient government support for digital adoption and excessive red tape,” said CPA Australia’s Business Investment and International Lead, Gavan Ord.
“We need the government to give small businesses the backing they need. This will require a significant culture shift, but it is desperately needed.”
Australia ranks 10th out of 11 markets in the Asia-Pacific for small business growth, with only 42 per cent of Australian small businesses reporting growth over the past 12 months compared to an average of 64 per cent across the region, according to CPA Australia’s 16th Asia Pacific Small Business Survey.
Survey reveals bleak picture
CPA Australia’s Asia-Pacific Small Business Survey comprised feedback from 4236 small businesses in 11 markets across the region and paints a bleak picture for small businesses in Australia.
Just 55 per cent of Australian small businesses expect to grow in 2025, compared with the Asia-Pacific average of 71 per cent, placing Australia 9th out of 11.
Only 35 per cent of Australian respondents expect the national economy to grow in 2025. This compares with an average of 67 per cent across the Asia-Pacific, placing Australia last out of the 11 markets.
“This worrying sentiment is fuelled by a sense that Australia’s overall economic prospects are weak,” Mr Ord said.
“There is a lack of confidence in the ability of federal, state and territory governments to foster economic growth and improve conditions for small businesses to flourish.
“A significant cultural shift is needed at all levels of government to prioritise economic growth rather than defaulting to regulation to address every problem,” he said.
Change needed
CPA Australia says the next federal government must:
- Prioritise reforms that reduce the regulatory pressure on Australian businesses.
- Create a more business-friendly environment through improved policy development.
- Substantially increase investment in digital support services to help small businesses realise their growth potential.
Mr Ord said the Australian government should take inspiration from what some Asia-Pacific counterparts are doing to support small businesses adopt technologies and good business practices.
“Australian businesses have fallen well behind our friends in Asia and a comprehensive plan to urgently address this is needed from the next government,” he said.