There can be no doubt entrepreneurial activity is alive and well in Australia, this despite the rather volatile environment that surrounds us. Some of the innovation that has been achieved has been recognised as world class.
Statistics informs us 1 in 10 SME’s established is start-ups with that ratio destined to dramatically increase in the next few years. These statistics also include the increasing trend of micro business, as a growing amount of younger people decide they do not want to be employed by someone else but rather control their own futures.
Most people in business would acknowledge how tough it is to operate and sustain a business and that not every venture will not turn out to be a success.
There are a number of reasons why businesses fail despite the initial good intentions and enthusiasm of its owners. One of those is the access to sound professional advice and assistance.
The growth in the use of coaches and mentors has proved invaluable to some SME’s, as they assist people and organisations in the early years of their journey.
The profile of these resources is usually of seasoned professionals with a good track record of either operating or owning a business.
Their fees for these services are normally commensurate with their particular skills and experience and can be wide ranging in terms of a cost to a client.
It is acknowledged that the most crucial time when advice is required is at the early stages of an enterprise and most companies are struggling with cash flow issues.
Today we are faced with a dilemma, these services are becoming increasingly expensive for the type of structures that are being established and are acting as an inhibitor to building sustainable ventures.
Strong evidence suggests that these young ( and older) entrepreneurs crave for this assistance but feel it is out of reach due to their respective fiscal limitations.
Of course, this is not an easy issue to solve, deference has to be given to those who supply such services, who also have to run their businesses profitably.
Is it a question of consultants taking a longer term view with regard to revenue generation? Are we exercising enough flexibility in the cost of services?
I suppose at the end of the day it will come down to each individual’s conscience in how much he or she is willing to sacrifice in order we can build strong business structures in Australia.
We need to be continually examining ways how we might achieve this.