Small business SPECIAL REPORT - businessnews.com.au - Business News
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Small business
SPECIAL REPORT
businessnews.com.au
Small business registrations in WA (month of June)
FEATURE
SMALL BUSINESS
Small business
Small registrations
business registrations inofWA
in WA (month June)(month of June) Business administrations in WA (annual)
Business administrations in WA (annual)
Business administrations in WA (annual)
Small business boom, pressures loom
Monthly retail sales in WA ($, billions)
The state government will have a chance to alleviate rising cost and wage
pressure for small businesses in its upcoming budget.
THE state’s small business sector is through the tills in June (seasonally Perhaps the most common concern has
winning the battle against pandemic adjusted) was up 19.1 per cent on June been the battle to find skilled workers.
pressures, with recent data suggesting 2019. There were 26,300 job vacancies in
registrations in Western Australia are Those strong numbers for economic WA in July, up 63 per cent since before
well up on any period for the past activity are flowing through to the COVID-19, data from the federal Labour
decade. labour force. Market Information Portal shows.
More than 3,080 new businesses Unemployment in WA was 5.1 per That indicates many businesses
Matt Mckenzie were registered in WA in June 2021, cent in June, according to the Australian are struggling to fill roles, with extra
matthew.mckenzie@businessnews.com.au
Monthly retail sales in WA ($, billions) according to the Australian Securities Bureau of Statistics. demands including increases in the
and Investments Commission. Superannuation Guarantee adding to
That’s more than any month in the Pressure the burden.
past 10 years. But while many of the numbers are In the regions, even those businesses
Business registrations usually peak positive, significant pressure points that can find workers may struggle to
in June as the financial year closes, the loom, with some businesses struggling house them, with Kalgoorlie posting a
data shows, but the previous highest to hire workers and tight markets for rental vacancy rate of 0.5 per cent earlier
level in that 10-year period had been other inputs. this year.
2,431 registrations in June 2016. Prices of building materials have Commsec wrote in mid-August that
And as many businesses are opening, lifted, including steel. In tech, there’s the national job market had improved
business closures are hitting lows. a global shortage of silicon computer more rapidly than expected, with border
Only 338 WA businesses entered chips, which is particularly frustrating closures reducing supply of skilled
administration in WA in the year to June, for businesses needing to buy kit to workers, while wages growth had
according to ASIC, down 46 per cent on support employees working from home. started to pick up from record lows.
the previous financial year. That period Finding space in Perth for a business is Consumer demand had also
included changes to insolvency laws to getting tougher, with CBD office vacancies contributed to wage growth, with
provide greater latitude to directors. at their lowest level in six years, according construction and professional services
All of that comes as state final to the Property Council of WA. experiencing the highest pay gains over
demand, which measures GDP without Oil prices have lifted from about the year to June.
trade, grew 3 per cent in the March $US36 per barrel in October to highs Bankwest Curtin Economics Centre
quarter. above $US70/bbl in recent weeks, and senior research fellow Daniel Kiely told
While retail sales have been June quarter fuel prices reached higher Business News the biggest change that
volatile during a year with three snap than pre-COVID-19 levels, according to would alleviate the worker shortage
lockdowns, the $3.4 billion that did pass the ABS, pushing up transport costs. would be opening borders.
28 | Business News August 23, 2021
FEATURE
SMALL BUSINESS
“
June 2021, underlying inflation – that
Border closures is, inflation that excludes one-off price
impacts – sits at 1.6 per cent, below the
are really impacting RBA monetary target.”
on the labour market, That meant interest rate increases
would be unlikely for now, and
with population lockdowns on the east coast could hold
back the national recovery, he added.
growth from overseas “However, the extent to which wages
grow on the back of labour shortages
migration non-existent Monthly retail sales in WA ($, billions)
will be watched carefully by the RBA in
the coming months,” Mr Kiely said.
Monthly retail sales in WA ($ billions)
at the moment - Daniel Kiely Budget
The September state budget will offer
“Border closures are really impacting the government a chance to address
on the labour market, with population some of these issues.
growth from overseas migration The 2021 financial year was a windfall
non-existent at the moment,” Mr Kiely for the WA Treasury with a royalties
said. jackpot of more than $10 billion
“The health implications of COVID-19 supporting a bumper surplus.
and the border closures are having a For the first time in some years, it
huge impact. seems a contractionary budget will
“The sooner we get people vaccinated be needed to take the heat out of the
... will be a massive relief.” economy, instead of one aimed at
He said there would likely be pressure sparking demand.
on wages because of skills shortages, The government recently indicated it
while there were also shortages in would seek to do just that.
materials for some industries and delays Transport Minister Rita Saffioti said
in shipping for traded goods because of “There’s a lot of debate globally whether it is a structural issue remains the government might slow the rollout
COVID-19. around this [inflation],” he said. to be seen. of its infrastructure program to reduce
Mr Kiely said there was not yet a “Whether this is a short-term factor “While [the consumer price index] pressure in construction, although that
consensus as to how long cost pressures because of stimulus packages and has spiked in June and has risen
would last. additional demand occurring, or nationally by 3.8 per cent in the year to Continued on page 30
Department of Primary Industries and Regional Development
Small Business Development Corporation
Business Local
Accelerate ideas, develop
new business skills.
Together with industry leaders, business
and financial experts we’re delivering
training, resources and support for startups,
small business and not for profits across
Western Australia.
Join one of our business skill building
workshops today.
133 140
smallbusiness.wa.gov.au
1300 374 731
dpird.wa.gov.au
941/21
Image: Lancaster Wines, Swan Valley © Tourism Western Australia
August 23, 2021 Business News | 29
FEATURE
SMALL BUSINESS
WA’S LARGEST STARTUP AND SME ORGANISATIONS AND PROGRAMS
Data & Insights Ranked by $ value of funding invested or distributed by your organisation, program or event most recent financial year
$ value of funding
Change invested or distributed
from Year by your organisation,
Rank
previous est. in Type of service to program or event most Principal source of funding: sponsors/
year Company name Senior executive and title WA start-ups recent financial year government/crowdsource (%)
Mr Derek Gerrard 2018 Venture funding, mentoring,
1 — BetterLabs Ventures NFP RAC
Venture fund manager advisory board
Accelerating Ms Natasha Teakle 2014 Competitive grant funding,
2 — NFP 100% matching Federal Government grant.
Commercialisation Commercialisation facilitator commercialisation assistance
Mr Chandra Sundareswaran
3 Plus Eight General manager 2016 Program $350,000 Investors (sponsors)
4 Ms Tamryn Barker Co-Founder, 2016 Co-working, program, event
CORE Innovation Hub $250,000 Industry sponsors 80%, Government grants 20%
Skills & partnerships lead
5 Landgate - SPUR Location Mr Graeme Gammie
2016 Program $150,000 Government
Grants Program Chief executive
Mr Ian Brown Operational funding sourced from membership,
6 Perth Angels 2010 Organisation NFP sponsorship & events. Investment funding sourced
Chair from individual members and investor community
Ms Danelle Cross 2011 Annual
7 program for
Curtin Ignition NFP Tertiary, government, sponsors
Manager entrepreneurs
8 Centre for Entrepreneurial Mr Charlie Bass Philanthropy - by founder Charlie Bass,
2015 Organisation NFP
Research and Innovation Executive chair Government grants, other philanthropic donations
9 Ms Jasmin Ward
Bloom 2013 Organisation NFP Partnerships, memberships, events
Launchpad facilitator
10 Mr Rohan McDougall
Curtin Accelerate 2013 Accelerator program NFP Curtin University
Director, commercialisation
11 West Tech Fest Ms Paula Taylor 2012 Event NFP Curtin University
Executive director
Ms Gemma Manning
12 Gemstar 2018 Program NFP Government and sponsors
Managing director
13
GET THE FULL LIST ONLINE businessnews.com.au/bniq/start-up-accelerators
51
From page 29 a SA competitor (47 per cent higher). Power they have come under stress from the
“The higher tax burden in WA is pandemic and online shopping,” Mr
was soon followed by Health Minister One big change not yet implemented
a key factor behind WA’s inability to Harris told Business News.
Roger Cook promising an extra $1.3 is in electricity markets, where the
diversify and to scale up key sectors like
billion on health infrastructure. government has long been considering “Lowering the threshold to 20MWh
manufacturing,” a spokesperson told
Longer term, some economic reforms allowing more small businesses to per annum, which shouldn’t affect
Business News.
advocated by economists in WA are yet choose their electricity supplier. residential customers, will enable about
“WA risks losing investment dollars
to be introduced, including a reduction That would end Synergy’s monopoly
and economic opportunities to other an extra 20,000 businesses to choose
in payroll tax and an end to energy for customers smaller than about the
states if it does not improve the their supplier, and make savings of up to
market restrictions. size of a supermarket, or 50 megawatt
competitiveness of its tax system over 20 per cent on their power bills.
Payroll tax is particularly damaging. hours a year.
the coming months. “These savings will allow those
Research such as that undertaken for Energy is about 7 per cent of the cost
“We should not allow WA to fall
the Henry Tax Review suggests that, for profile of a manufacturing business, businesses to employ more people and
further behind the eastern states.”
every $100 raised through payroll tax, about 3 per cent in hospitality, and 9 generate more economic activity in WA.”
Earlier this year, PwC suggested
$40 of economic activity is destroyed, per cent in transport and warehousing, He said the 50MWh threshold
cutting exemptions to payroll tax to help
compared to less than $10 for land tax. the ABS has reported. would be particularly problematic for
fund a reduction in the tax rate.
It also adds to the pressures for “While the payroll tax is conceptually CCI said the restrictions against businesses just below that level.
growing businesses trying to hire new efficient, the existence of thresholds competition increased energy prices
Two pizza shops in the same suburb
workers, as it is levied on a company’s and exemptions undermines this for small and medium businesses, with
might have substantially different
wage bill. efficiency and increases complexity for a survey prior to COVID-19 indicating
The Chamber of Commerce and that about three in four businesses power bills depending on whether they
businesses,” the firm said in its ‘Busting
Industry of WA said the payroll tax burden supported the policy change. exceed the threshold or not, affecting
myths and fixing the system’ report on
in the state was among the toughest in the payroll tax. Evidence from NSW, the UK and New competitiveness, Mr Harris said.
country at some payroll levels. “Payroll tax-free thresholds ... create Zealand also suggested competition One further change to lower power
A business with about 25 employees distortions which reduce output and would reduce power bills, CCI said. prices would be to alter the system
would have the highest payroll tax employment. Independent Power Association through which metropolitan users
burden in the country, CCI said. “The logical response is to address of WA chair Richard Harris said he
subsidised power prices in regional
At a payroll of $2 million, a business these distortions by removing understood the state government
would pay $40,000 more than an areas, CCI said.
exemptions and lowering the rate.” was considering the change, and
equivalent entity in South Australia, The chamber suggested it be
The burden of the tax results in reduced other moves to help retailers in large
about 156 per cent higher. productivity, lower wages, or higher shopping centres. funded through the state’s budget, not
With a payroll of $5 million, a consumer prices, depending on broader “[This would help] the small business through the existing Tariff Equalisation
business pays about $80,000 more than economic circumstances, PWC said. sector of the economy at a time when Contribution levy.
30 | Business News August 23, 2021
FEATURE
SMALL BUSINESS
Data & Insights WA’S LARGEST FLEXIBLE WORKSPACES AND STARTUP PLACES
Ranked by total size of all space(s) in square metres
Change Total size of
from Year all space(s)
Rank
previous Senior executive and est. in in square No. of Suburb location
year Company name title WA metres spaces of space(s) Services Provided
Mr Balder Tol WeWork is a global business, with Australian operations run out of Sydney. Its co-working
1 WeWork General manager, 2019 7,900 1 Central Perth spaces support established companies and startups alike. High speed internet, funky
Australia layouts and kambucha on tap feature. They entered the Perth market in mid 2019.
Liberty Flexible Central Perth (3), West Perth-based Liberty offers flexible coworking spaces for professionals seeking
2 Mr Jamie Vine 2010 7,452 7
Workspaces Chief executive Perth, Burswood and a collaborative coworking or private office environment combined with
Joondalup corporate facilities.
Spacecubed has several coworking facilities in Perth including Fern, FLUX, CORE
3 — Spacecubed Mr Brodie McCulloch 2016 7,100 6 Perth, Yanchep Innovation Hub, Riff, Murdoch x Spacecubed & Y.hub. Out of these spaces, they offer a
Managing director series of programs including Plus Eight, She Codes and Meshpoints.
International Global workspace business IWG owns the Regus and Spaces flexible office
4 Ms Dayle Parkins 6,418 Central Perth (3), West
Workplace Group Area sales manager, WA 1990 5 Perth, Osborne Park brands. Its newest Perth location is Space The Wentworth, a 2926sqm faclity
that opened midway through 2019.
Business Station is a not-for-profit, government-funded organisation providing small
5 — Business Station Mr Colin Jorgensen 2003 4,550 4 Perth CBD, Gosnells, business advisory and support services. If offers office space to eligible businesses
Chief executive Joondalup, Wanneroo at a heavily reduced rate. Businesses have access to a range of advisory services.
6 — Servcorp Ms Natasha Collins 1978 1,500 2 Perth ASX-listed Servcorp has a global network of workspace solutions, including
Business manager serviced offices and coworking spaces.
7 — Victory Offices Ms Claire Duncan 2018 1,100 1 Perth Victory Offices is an ASX listed flexible workspace provider. It's Perth location
Manager offers private offices, meeting rooms and coworking spaces.
8 — Maker + Co Mr Craig Holland 2016 1,000 1 Bunbury Maker + Co is a social enterprise that connects investors, creatives,
Managing director entrepreneurs and innovators.
Claisebrook Design Airconditioning, free bike hire, mailbox function centre, Printing, Coffee
9 — Ms Beth Parker 2016 930 1 Perth Discounts, Lockers, Kitchen, Cafe, Meeting Rooms, Storage Options, High
Community Community manager Speed Internet, Showers, Boardroom, Free Public Transport Zone.
Ms Alex Stroud Dexus Place Perth is a purpose-built meeting room, conference venue and
10 — Dexus Place Community & business 2019 930 1 Perth events facility located at 240 St Georges Terrace. It was launched in October
development executive 2019 and is a flexible office space options for Dexus tenants across Australia.
Well established full service coworking space located on the fringe of the CBD
11 — Officenexus Mr John Uifelean 2017 800 1 Perth in Perth. A number of private offices as well as meeting rooms, coworking
General manager desks and hot desks available for long and short term hire.
Ms Diana Ong The Platform & Purpose Studio is an events and co-working space for the not-for-profit
12 — The Platform Perth Co-founder, general 2017 600 2 Perth and social enterprise sectors that encourages collaboration and inspires creativity. Their
manager mission is to connect people and purpose for good, through community and spaces.
13 — The Lab Factory Ms Donna Bates 2016 510 1 Rockingham The Lab Factory is a collaborative coworking space, with open work spaces
Managing director and private meeting rooms.
14 — Studio Startup Mr Peter Rossdeutscher 2013 370 1 Perth Studio Startup has serviced offices in Perth CBD It offers programs powered
Manager by the advisory group Atomic Sky.
15 — Tank Stream Labs Ms Mira English 2018 350 1 Perth Co-working space, headquartered in Sydney; their first Perth space opened in
Community manager the EY building in 2018.
Ms Angie West Social enterprise Pollinators operates CityHive, providing coworking, meeting,
16 — Pollinators Space + collaboration NFP 323 2 Geraldton event and office space in the Geraldton CBD.
lead
17 — M Space Mr Eddie Liew 2018 300 1 Burswood M Space is a co-working facility in Burswood, including meeting rooms,
Director private offices and agile workplace facilities.
The West Perth Mr Mark Jackson
18 —
Office Owner 2015 217 6 West Perth Dedicated offices, co-working spaces and meeting rooms.
fSpace is chilled coworking in the heart of Fremantle. It includes private
19 fSpace Ms Sabine Albers 2013 200 1
Owner Fremantle or shared desk) as well as access to a meeting room. fSpace is for existing
businesses and start-ups in creative industries.
20
GET THE FULL LIST ONLINE businessnews.com.au/bniq/startup-co-working-spaces
30
All information compiled using surveys, publicly available data and contact with industry sources. Other companies may be eligible for inclusion. If you believe your company is eligible,
please email: claire.byl@businessnews.com.au WND: Would Not Disclose, NFP: Not For Publication, N/A: Not Applicable or Not Available.
August 23, 2021 Business News | 31
FEATURE
SMALL BUSINESS
you do get someone come into [a
fitness] club, it becomes a lot easier to
demonstrate that value proposition; but
it is a very noisy space out there in the
digital space around getting attention.”
A cut above
The state’s top franchisor is still Jim’s
Group, according to Data & Insights,
with 354 franchisees in the state, nearly
double the second-ranked franchisee,
commercial cleaning business
Jani-King Australasia.
Sitting at number six on the list is the
biggest mover in the Business News top
10 WA franchises.
Smartline Personal Mortgage
Advisers has increased its portfolio of
franchisees by 28 per cent, adding a
further 17 locations since 2019.
That brings its total to 76 locations.
The growth follows REA Group,
which owns realestate.com.au,
acquiring 100 per cent ownership of
Smartline in July 2019.
Mortgage Choice mortgage brokers
dropped from rank 14 to 22, with 37
locations this year.
Anytime Fitness north-west regional manager Simon Thompson. Smartline’s move upwards bumped
McDonald’s and Domino’s down from
sixth and seventh in 2019 to seventh
Fitness sector flexes
and eighth, respectively, in 2021,
despite maintaining their numbers at 72
and 73 locations, respectively.
post-pandemic muscle
Red Rooster has maintained its 64
locations over the past two years but
has moved up from position 10 to
squeeze in at number nine.
That move was prompted by the loss
Losses due to the pandemic have led to some upheaval in the sector. of 13 Bakers Delight locations and 18
domestic cleaning services operating
under the Housework Heros brand.
WESTERN Australia has been a firm clubs have avoided the worst effects of Housework Heros took a large dive
market for gym franchising during lockdowns, which Mr Thompson said from rank nine to 13, with just 50
the past year, a period during which could be both a boon and a curse. locations left this year.
lockdowns have hit operators across “Largely, the impact of COVID has Bakers Delight’s 58 locations led it to
the country. been [that] people have prioritised their be ranked 1oth on the Data & Insights
Anytime Fitness has 38 locations in health and fitness and have realised list, down from position eight in 2019
WA, while Jetts 24 Hour Fitness has 43 how important it is,” he said. when it had 71 locations.
Sarah Smit locations, unchanged from two years “[However] every time we do a snap Mirroring Bakers Delight’s dip is
editorial@businessnews.com.au ago, according to Business News’s Data lockdown, it has an impact on clubs. Brumbies Bakeries.
& Insights. “People being worried financially With 23 locations in 2021, Brumbies
Snap Fitness has 31 locations. means they tend to pull the purse dropped 35 per cent of its 35 locations
Anytime north-west regional strings tight. from 2019.
“
manager Simon Thompson said WA’s “What we generally see is that the Sandwich store Subway Australia
Largely, the impact gym industry was one of the most members, if they’re confident in the and fuel station network Puma Energy
competitive nationally for franchise cleanliness and the hygiene practices have both held their places at fourth
of COVID has been gyms. within the club, visitation is still really and fifth, respectively, but Subway put
[that] people have “The Sunshine Coast and the Gold
Coast are [also] extremely competitive,
strong.
“For clubs that are less good at that
on 13 new stores in WA, bringing its
total to 144 locations statewide.
prioritised their health but while there’s plenty of franchises [hygiene], they might see members New entrants to the top 20 include
[there], there’s a lot more independents are less inclined to want to turn up as Boost Juice with 43 locations in 2020
and fitness and have as well, so they kind of flesh out a lot much.” and Poolwerx Corporation with 55.
of the competitive marketplace that we Mr Thompson said the franchise Drive-through coffee franchise Muzz
realised how important see in places like that,” Mr Thompson model provided an edge in marketing. Buzz dropped nearly 10 places down
it is told Business News. “It is really important to get from 19th to 28th on the list, and from
“But my sense is that there’s well and your point of difference across in a 40 locations to 36 locations.
- Simon Thompson truly a lot of options in WA.” competitive space like that,” he said. Chicken Treat fell from 13th in the
WA’s success in preventing COVID-19 “Being a franchise and having rankings to 19th with 38 outlets in 2020
outbreaks mean the state’s fitness owners in the business [means] when down from 50 in 2019.
32 | Business News August 23, 2021
FEATURE
SMALL BUSINESS
Data & Insights WA’S LARGEST FRANCHISES
Ranked by number of WA franchises
Change
from
Rank
previous Year est. Number of WA
year Name Senior executive and title in WA franchises Core business
Mr Paul Godden
1 — Jim's Group 1991 354 Home services
Divisional sales manager
Mr Luke Bogdanovich
2 — Jani-King Australasia 1993 171 Commercial cleaning services
Regional manager, WA
Mr Tony Kearney
3 — Cleantastic Perth 2004 164 Commercial cleaning services
Director
Mr Rodney Pestell Quick service restauran specialising in
4 — Subway Systems Australia 1988 144
CEO, Subway WA/SA submarine sandwiches
Mr Paul King Petroleum wholesaling, retailing and
5 — Puma Energy Australia 1976 94
Territory manager WA/NT convenience stores
Smartline Personal Mr Michael Theseira
6 — 1992 76 Mortgage broking
Mortgage Advisers State manager
Mr Don Meij
7 — Domino's 1989 74 Quick service restaurants
Group chief executive
8 — McDonald's Australia 1982 72 Quick service restaurants
Mr David DeGasperis
9 — Red Rooster 1972 64 Quick service restaurants
State manager, WA/NT
Mr Shane Prior
10 — Bakers Delight 1994 58 Bakery retail
Regional manager WA
Mr Nigel Oakey
11 — Dome 1989 56 Retail cafés
Managing director
Mrs Diane Doust Sales, servicing and installation of pool
12 — PoolWerx Corporation 2002 55
WA master franchisee products and equipment
Mr Mike Stringer
13 — Housework Heroes 2001 50 Domestic cleaning services
National franchisor
Mr Nigel Warr
14 — Auto Masters 1975 48 Automotive servicing
Managing director & franchisor
15 — Boost Juice Bars 2002 43 Juice bars
16 helloworld 41 Retail travel
17 Mr Darren Gleeson
Success Tax Professionals 2003 41 Accounting and tax franchiser
Co-founder, chief executive
18 Ms Donna Mooney
Muffin Break 1990 39 Bakery cafés
State franchise manager (WA/NT) Foodco
Ms Mimma Battista
19 — Chicken Treat 1976 38 Quick service restaurants
Chief executive
20 Mr Emmanuel Drivas
Coffee Club 2003 38 Retail cafés
Chairman
21 Mr Adrian Glendinning
Zambrero 2013 38 Quick service restaurant
WA area manager
Mr SImon Thompson
22 — Anytime Fitness 2012 38 24-hour gym
North-west regional manager
Mr Neil Gomersall
23 — Mortgage Choice 1995 37 Mortgage broking
State manager
Mr Stephen Kuhanez
24 — Nando's 1990 37 Quick service restaurants
Area manager, WA
25 Ms Hayley Radalj
Mitre 10 Australia 1959 36 Retail hardware
State manager
26
GET THE FULL LIST ONLINE businessnews.com.au/bniq/franchises
99
All information compiled using surveys, publicly available data and contact with industry sources. Other companies may be eligible for inclusion. If you believe your company is eligible,
please email: claire.byl@businessnews.com.au WND: Would Not Disclose, NFP: Not For Publication, N/A: Not Applicable or Not Available.
August 23, 2021 Business News | 33
Data & Insights
Showing 6 of 3,472
New business boom in WA
more about the climate for small business, see
the Business News small business feature in the
August 23rd edition of the magazine …
Telstra, insurers help ASX to record
close
per cent while lending to small business
improved by 4.3 per cent. NAB …
Emergency minister defends
bushfire grants
27,000 grants and loans to small businesses and
farmers, and financial …
Innovation in WA: The skills, talent
Small
& funding needed to thrive
creation, innovation, science, small business ,
regional and skills development …
business
Major recovery package after WA
cyclone
residents, primary producers and small
businesses with clean-up and repairs. Funding …
Workers to receive extra lockdown
support SPECIAL REPORT
strain from capacity limits, small businesses , a
fund for hospitality and …
businessnews.com.auYou can also read
