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Chapter 6
Conclusion
6.1
In chapter one, this committee acknowledged the previous efforts of
parliamentary committees and governments in examining important issues that
concern Australia's SMEs. These efforts are testament to the ongoing commitment
of governments and parliaments to this business sector that provides employment
for over seven million Australians.
6.2
Australia has in place a strong economy and a robust, highly effective
system of financial regulation. These factors have meant that it weathered the
global financial crisis relatively well, and is recovering strongly. All
Australians, including those in SMEs, have benefitted from these circumstances.
6.3
Nevertheless the GFC has presented great challenges, particularly on the
financial front, for all businesses including SMEs. The committee was given
evidence that some of the major issues are starting to be resolved, but that
there are still measures that can be taken to improve the productivity and
resilience of the SME sector.
6.4
The committee believes that better information about SMEs and about
business finance could contribute to better policy processes and lending. The
committee noted in chapter one that there is no coherent approach across
government agencies or major stakeholders in defining different business
categories. A lack of standard definitions means a lack of standardised data.
It can also lead to misunderstandings when interpreting that data. In listening
to stakeholders, there appeared to be at times significantly diverging
understandings of what was happening in the lending environment, with some data
gaps.
6.5
The dissemination of accurate, timely and relevant information about
economic conditions can help governments in policy development and
implementation. It can also help ensure lenders adopt lending practices that
reflect current economic conditions and issues. Good communication can also
help stakeholders understand the issues they each face. The committee formed
the impression that this was not always the case following the onset of the
GFC.
6.6
The committee hopes that implementation of its recommendations,
particularly in relation to information gathering and dissemination, will help
improve the financial environment for SMEs in Australia.
Mr Bernie Ripoll MP
Chairman
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