400,000 small businesses on the brink of going bust
Source: Daily Telegraph
Journalist: Shannon Deery
Bill Lang’s information featured in the Daily Telegraph article:
A national survey of 1300 businesses, conducted by lobby group Small Business Australia, gound urgent government support was needed to prop up struggling businesses.
“Through no fault of their own business owners are being put out of business,” SBA executive director Bill Lang said.
“They have the skills and the mindset to be able to operate businesses, they were operating good businesses as of March of 2020, but they’re going to be severely restricted from doing that.”
Managing cash flow, paying rent, and managing COVID-19 restrictions ranked among the most significant issues being faced by business owners.
While 75 per cent of respondents had applied for some government support, 15 per cent of those businesses had received no financial help. Business owners say that without further assistance they can no longer pay expenses or pay themselves a wage.
SBA is pushing for federal legislative changes to protect small business owners from legal bankruptcy. Mr Lang said it was too easy for creditors to bankrupt struggling businesses, making it hard for them to get back on their feet.
Small Business Australia urges the government to implement fast action needed for a fairer solution for those businesses forced to close due to the COVID-19 restrictions. Learn more about COVID Business Closure.