Almost half of small business entrepreneurs say that one of the main issues faced by them is remaining compliant with all the law, including their tax obligations.
That’s according to a survey released by Xero late last week, that has asked small business owners to record their greatest fears. Other obstructions faced by small business proprietors include cash flow management (28.8%) and adoption of new business technologies (26.3%).
The Big Emotions of Small Business report comes in the wake of a similar report conducted by the free market think tank, Institute of Public Affairs (IPA). The IPA says that red tape “costs the Australian economy $176 billion a year,” and that Australia’s employment regulatory environment has “consistently” been ranked as a major issue faced by small businesses.
The IPA reports also condemns the corporate tax rate of Australia, stating that it discourages the growth of small businesses.
Specifically, the IPA petitions the Australian Government to cut red tape and taxes that impede the growth of businesses. Currently, the small business tax rate is 27.5%, which is set to drop to 25% by 2021.
Along with this, the adoption of new business technologies is one of the other challenges faced by startups.
Amanda Newton, the head of community at Xero, says, “What they’re missing out on is the greater opportunity that digitisation can provide.” She points out that employees should be told about the upsides of technology so that they can easily accept new business technologies.