Small Business Owners — Are They Treated as Fairly as the Unemployed?

Small Business Owners — Are They Treated as Fairly as the Unemployed?

By Doug Constable

Small business is the engine room of the Australian economy. It accounts for almost half of all private sector jobs — around 4.8 million people out of 10.5 million — and roughly a third of private sector value. Strip small business out of the picture and the country stops working.

So why do we turn on small business owners the moment they hit financial trouble?

In more than 35 years working alongside business owners, I have rarely met one who didn't throw everything they had at saving their business. They borrow against their assets. They sign personal guarantees. They mortgage the family home. They tip in money and assets they've spent a lifetime building — all to stay afloat, pay their creditors and do the right thing.

I'm not talking from the sidelines. I lost a business myself in 1988. I know exactly what that pressure feels like, and I know what it does to a person and to their family.

Here's what bothers me. Business owners carry an enormous load for this country. And when they fall over, the system shuts them out. They're demonised, discouraged, and treated with no dignity at all. That isn't just unfair — it's shameful.

Now look at how we treat the unemployed. And to be clear — that treatment is right. People out of work are met with dignity and respect. Their self-esteem is protected. We're expected to be understanding and encouraging of their circumstances. Good. That is how it should be.

So why don't we hold the same standard for business owners?

Instead, we go the other way. Governments pile on with director penalty notices, intimidating tactics and bullying letters. Credit ratings get torched. Someone who took a risk and had a go gets treated like they've done something wrong.

Is that the punishment for being ambitious?

Remember this: without the courage, grit and drive of business owners, Australia looks like a very different place — and nothing like the lucky country.

We should be encouraging these people, not discouraging them. Helping them, not shutting them out. Valuing them, not writing them off. Teaching them the skills so they're better prepared next time. Backing them — because they back us, every single day.

Small business owners do far more than prop up the economy. They show us what strength, struggle, hard work and real success actually look like. Government should be fostering that, not crushing it.

Because a nation's economic success isn't handed down by governments. It is built by the ambition and determination of its people.

If your business is under pressure right now, don't wait until the options run out. The earlier you get a clear, straight read on where you stand, the more choices you have. That's the work I do — helping owners understand their position and lining them up with the right people to deal with it. No judgement, no sales pitch — a straight conversation.

Doug Constable·Business Advisors·0499 499 899·www.resolvency.com.au