Ombudsman launches inquiry into small business funding gap

The lack of funding for small business is the next target for the Small Business and Family Enterprise Ombudsman who is launching an inquiry into the issue on Wednesday.

"All sides of politics are very good at saying small business is the engine room of the economy but it is bloody hard to run that engine if you don't have petrol and that petrol is finance," Kate Carnell told Fairfax Media. "You can't grow a business if you dont have access to finance  , it's that simple."

Carnell says the funding gap is "a very big problem" for SMEs in Australia with the Productivity Commission’s draft report for its inquiry into competition in the Australian financial system finding that SMEs did not have access to the finance they need to grow their businesses.

This was backed up by Barriers to Investment research conducted by the Ombudsman's office last year.

"The big banks have about 80 per cent of the small business business in Australia and the big four banks are not lending to small business unless they have significant equity in property," says Carnell. Read more

Cara Waters - Brisbane Times - 4 April 2018