At Active Directions, we’re proud to champion family, private and mid-market firms as they are the backbone of our economy and communities.
This is the first in a five-part series exploring how we, as a sector including business owners, advisers, industry groups, corporates, and government can step up our advocacy. The objective should be to elevate the visibility and voice, so it is line with its importance to our economy and communities.
We welcome your feedback and your viewpoint on how support may be improved. In this series we will reference Australia, New Zealand, UK and North America as a reflection of where our clients operate.
Powering Economic, Financial and Social Growth
Small and medium-sized enterprises (SMEs) and family businesses are more than economic contributors, they are job creators, innovators, and community builders. In this article, we highlight their impact and explore how we can better advocate for their future.
Economic Contribution
SMEs and family businesses form the backbone of our economies, not only driving economic growth but also creating diverse and meaningful employment opportunities. In Australia, SMEs contribute over half of private sector GDP while providing jobs for over 7 million people.
This pattern is echoed globally. In the UK, SMEs account for 99.9% of businesses and are responsible for generating £1.3 trillion annually. Family businesses alone contribute nearly one-third of the country’s GDP and help to employ more than 16 million people, with their regional presence ensuring widespread access to employment.
Regional and Community Development
Private and family-owned businesses are often the lifeblood of regional economies. They provide jobs, services, and local investment that keep communities thriving. When these businesses succeed, they support supply chains, sponsor local events, and help retain population.
But when they decline or disappear, the impact is immediate and far-reaching. In towns like Geelong and Whyalla, the loss of key industries and family-run firms has led to job losses and population decline. Without thriving private enterprise, regional communities risk being hollowed out. Public investment alone cannot replace the deep local ties and long-term commitment that family businesses bring.
The Role of Advisers and Industry Associations
Advisers — accountants, lawyers, consultants — the research shows that the mid-market want more from their advisers and accounts. They are looking for their trusted advisers to proactively bring advice that will help them, not just to be compliant, but help them meet their growth and investment ambitions.
Active Directions was recently facilitating a workshop with four entities considering a joint venture and during a break they were all commenting on the lack of broader advice from their respective accountants. Their comment was that - with all the business information they have – why are they not bringing more advice to the table. They have a point, and this extends to all professional services.
According to the Deloitte Legal Trends report, the top reasons why businesses change firms include the lack of ability to provide advice that matches the growth of the business and a lack of proactive advice.
Industry associations need to intensify their efforts as well. It is not enough to represent businesses passively. Associations should launch stronger, coordinated campaigns, lobby more vigorously, and hold policymakers accountable for progress.
The Role of Business Owners
Business owners themselves must refuse to be seen as a minor player. They should make their needs known and actively participate in consultations at a federal, state or local level. By sharing experiences, challenging legislative shortcomings, and forming alliances with peers, they can help lead the charge for better conditions and stronger recognition.
The Role of Government
Governments recognise the importance of SMEs and family businesses, but support is often fragmented and short-term. The latest election in Australia – no matter your side of politics – was largely free of any real debate on significant policy. It would be great to see more real policy debate and implementation across some key areas:
- Structural Reform: Develop a national strategy that embeds SMEs and family businesses into long-term economic planning.
- Access to Capital: Expand loan guarantees and alternative funding options to unlock growth, especially for asset-light businesses.
- Level the Playing Field: Streamline procurement and reduce compliance costs to help SMEs compete with large corporates.
- Digital and AI Transformation: Provide targeted grants and training to support digital adoption and global competitiveness.
Let’s Lead the Conversation Together
SMEs and family businesses are not just part of the economy; they are its foundation. They deserve a stronger voice, better support, and a seat at the table.
If you’re a business owner, adviser, or advocate, we invite you to join the conversation. Get in touch and lets collaborate to do our part.
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