The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has welcomed the actions of the Future Fund, in exploring ways to invest in Australian small businesses.
Ombudsman Kate Carnell said feedback from the small to medium enterprise (SME) sector is that access to capital remains a significant barrier despite a healthy pipeline of businesses suitable for investment.
“Access to capital is critical for small businesses seeking to start or expand their operations.
“However when seeking finance from the banks, loans have to be secured against bricks and mortar – which is usually a small business owner’s home,” Ms Carnell said.
“It is refreshing to read that the Future Fund believes there are attractive investment opportunities in the Australian SME sector in which it can invest.
“Supporting SME’s to realise their growth potential would provide strong investment returns and boost the economy.”
The ASBFEO study in 2017 on barriers to investment showed a more creative approach to small business lending would give small businesses confidence to grow and boost jobs.
“This has been backed up by the Productivity Commission’s report on competition in the Australia financial system and research by the Reserve Bank of Australia,” Ms Carnell said.
“If the Future Fund is serious about real investment in Australia’s SME’s, I would welcome being involved in the discussion and actions around this”.
Source: Australian Small Business and Family Enterprise Ombudsman