Adequate, affordable, accessible, responsible
The Institute of Public Accountants (IPA) is calling for adequate and affordable access to responsible finance for small business within the development of the Australian Small Business White Paper.
“Recent comments made by the Reserve Bank of Australia (RBA) in its submission to the financial system inquiry reflects the reality that many small businesses lack access to affordable and responsible finance,” said IPA chief executive officer, Andrew Conway.
The RBA’s submission to the financial system inquiry states that small businesses operating for three years or less use credit cards and personal loans more than business loans.
“In many cases, small business people are placing their family homes and wellbeing on the line, as they drive their passion for their business,” said Mr Conway.
“Sources of finance are viewed as major obstacles and challenges to business growth.
“The sustainability and growth of small business is crucial to Australia’s economy, both in terms of productivity and prosperity.
“We look forward to outcomes from the Murray Review in addressing some of the financing obstacles creating barriers to small business growth.
The Australian Small Business White Paper launched at a special Summit conducted by the IPA with a group of key policy and industry leaders in Parliament House in Canberra, has put forward a number of recommendations around responsible finance for small business.
“It is the IPA’s intention to take feedback from the Summit, gain additional input from other stakeholders across Australia, and to submit the final Small Business White Paper to Government by December of this year,” said Mr Conway.