SMALL business are turning away from Government agencies set up to help them and instead approaching their accountants, their bank or friends for advice, a survey has found.
A survey of home-based businesses by Curtin University School of Management lecturers Michael Schaper and Leighton Jay found Government agencies were usually the last port of call.
However, while the survey’s authors distributed about 1,500 questionnaires, their findings were based on just 68 responses.
Dr Schaper said the findings raised questions about the efficiency of Government agencies such as the Small Business Development Corporation.
“Is the SBDC spending its money in the right places,” he asked. “The Business Enterprise Centres do a good job but they don’t have that much funding.”
Small Business Development Corporation director of business facilitation services Stephen Moir refuted the survey’s findings.
He said the SBDC’s own market research showed that clients who used its business advisory services had been very satisfied with the guidance they received.
“What this research has demonstrated is the need for the SBDC and the BECs to increase their profile so that more small business operators recognise the value and range of services on offer,” Mr Moir said.
He said the SBDC offered free and confidential advice on most subjects facing small business, such as business planning, electronic commerce, leasing, marketing and statutory requirements.
The survey found 95 per cent of entrepreneurs reported using their accountant. Bank staff were the next most commonly used advisers (90 per cent), 68 per cent reported using family and friends and 78 per cent other business operators.
Only 20 per cent of respondents reported using government agencies or professional management consultants.
Dr Schaper believes the compliance burden brought with the GST has forced small businesses to turn to their accountant for help.
