If you’ve ever dreamed of
throwing in the towel at work and starting your own business, you’re not alone.
In fact, more than nine million Australian’s dream of being their own boss.
Research commissioned by the Australian Banking Association,
found that while millions of people have dreamed of working for themselves and
starting a business, 60 per cent (5.4 million) say ‘access to money’ is the
sticking point. (ABA Economic Report 2019)
The numbers are even higher for women and young people, 65
percent of women and 67 percent of people aged between 18 and 34 believe access
to finance is stopping them from fulfilling their entrepreneurial dreams. (ABA Economic report 2019)
When it comes to what sort of small business, IT/technology
tops the list for men, while women prefer something in the retail/clothing
area, food and hospitality was the second most popular choice for both men and
women.
ABA CEO, Anna Bligh said there is
no better time to contact your bank about a small business loan, interest rates
are at record lows, banks approval of small business loans is at 94 percent, and
the new Banking Code provides for fairer and simpler small business contracts.
“Despite this, small business loan applications have
declined by a third (33 percent) since the 2014 calendar year. Encouragingly,
there has been a lift in the June quarter. It’s early days, but we hope that it
will continue.
“There could be many reasons for the downturn, including believing
that they won’t get a loan, thinking it takes too long, deeming the application
process too complex or they’re simply borrowing money from other sources.
“Banks understand that small
business operators are in the business of running their business, not being
bankers, so, in conjunction with COSBOA (Council of Small Business Organisations
Australia) and CPA Australia, we’ve developed a website that is a step-by-step
guide to applying for finance.
The ‘financing your small business’
website contains templates, checklists and easy to understand information about
everything from creating a business plan, through to using a trusted advisor
and the types of finance available.
“There are more than two million
small businesses in Australia, that employ more than four-and-a-half million
people. They are the true engine room of the economy and banks understand that having
access to finance is vital.
“The best piece of advice that I
could give anyone thinking of taking that next step of realising their dream of
starting a small business, or expanding and growing their current business, is
to explore the new website .
The SME Lending Economic Report is available . Website:
Note: Anna Bligh and COSBOA, CEO, Peter Strong will be available for in-person interviews Friday 12.30pm Melbourne CBD
