According to the Australian Taxation Office, a small business is an enterprise that generates less than $2 million per year.
The Fair Works Australia reports describe it as an organisation with less than 15 employees. Based on these descriptions, there are thousands of small businesses in the country.
Small businesses in Australia constantly face a struggle in securing and accessing reasonable finance solutions. After the harsh economic effects of the pandemic, these businesses require steady financial support to build up their working capital and maintain operational capacity.
Small businesses are the main drivers of the Australian economy, representing 35% of GDP and 44% of the Australian workforce, but do not receive the right amount of attention.
According to the Reserve Bank of Australia, many SMEs have failed to secure financial credit since 2019 because:
● The small businesses' request for credit is too late
● Small firms have to pay a higher interest rate than large companies
● The bank supply chain finance lacks the required technology to incorporate many small businesses
● There's an apparent misunderstanding on the use of financial credit
Despite the problems faced due to lack of finance credit, there seems to be a change on the horizon. If you're struggling to get some much-needed financial credit to boost your business, there are useful funding options for entrepreneurs.
There are many potentials to be unlocked when SMEs can gather substantial financial assistance from the right authorities.
Financial credit can improve the overall outlook and performance of a business by purchasing new equipment, sprucing up your workplace, or generating a new marketing campaign. These solutions may be what you need to grow your small business into a large corporation.
Let's explore the available funding options for small businesses in Australia:
● Alternative and Accessible Funding Options: These accessible funding options include short-term loans offered by fintech organisations that can be applied for through a streamlined application procedure
● Government Program Grants: small enterprises are offered government-sponsored grants depending on their type of business and their need for extra funding
● Business Enterprise Centers: Business Enterprise Center (BEC) will offer small businesses networking opportunities and leverage the time, knowledge, and effort put into the business. They are non-profits located in each state of the country.
●Non-conventional funding sources: Small businesses can also fund their business through tax breaks, business-to-business loans, and social media outreach.