Small business cited as unemployment saviour

New research from MYOB has indicated that an overwhelming majority of small businesses suffer when it comes to employing staff, and has suggested that the next generation of business owners are in need of new methods to tackle these issues.

MYOB’s latest Business Monitor, a quarterly national survey of over 1,000 SME owners, revealed that 75 per cent of SMEs experience at least one pain point as part of the employment process.

Of particular frustration for SMEs is the ability to find new staff, issues in dealing with payroll compliance, and the ability to dismiss employees.

The recent Business Monitor results coincide with the latest youth unemployment figures, which climbed to 12.4 per cent for those aged 15 to 24 in May of 2016, with the overall figure hovering at 5.7 per cent nationally.

MYOB pointed to recent developments that indicate the government’s hope for small business in combating unemployment.

“With the South Australian Treasurer Tom Koutsantonis announcing earlier this month that the state’s 140,000 small and medium businesses will be able to claim a $10,000 cash grant for each new employee they hire, it’s become apparent that the SME community is seen as a possible solution to the concerning unemployment numbers,” said MYOB.

“The New South Wales budget also revealed a $6,000 payroll tax rebate per new hire for businesses with fewer than 50 employees.”

Alla Keogh, head of people and performance at MYOB, added that while it is evident that SMEs are a possible solution to the unemployment problem, state and federal governments need to work with the SME community to make an impact.

“We congratulate state governments, particularly in South Australia, on tackling the unemployment issue head-on. The South Australian cash grant is a great incentive for a small business owner, who can see the immediate economic benefit of making the hire, rather than having to wait until tax time.”

“Governments at both state and federal levels must continue to recognise that if small and medium businesses are going to be a tangible solution to rising unemployment figures, they will need economic support in order to encourage growth in their workforce, especially in periods of wider economic uncertainty.”

Of particular interest within the latest Business Monitor results was the finding that Gen Y SMEs are more likely to suffer employment issues, with only 10 per cent indicating zero frustrations with employment, as opposed to 32 per cent of their Baby Boomer counterparts.

 

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