SMEs and the question of trust
Wednesday, April 5, 2017/
At a recent meeting, one of the brand managers I was talking to was claiming SMEs don’t trust anyone: “How can we get them to trust us?” they asked.
I do a lot of work with SMEs and I love dealing with them. I’m an SME owner too. But this person’s observation struck me as having an element of truth to it. Australian small business people can be pretty sceptical, even cynical sometimes.
That’s not necessarily the same as being negative. Generally I find the overwhelming majority of the SMEs I’ve worked with have a positive attitude and outlook.
But I think so many have been burnt by dealings with big businesses and the major banks, government departments and bureaucracies — and sometimes even their own employees — that they’re always looking over their shoulders, wondering “Who’s coming after me next?”
That’s a tiring way to live. Is it just paranoia or something more?
Government departments and authorities seem to spend half their time cracking down on small business. Hardly a month goes by without headlines telling small businesses the Australian Taxation Office has them in their firing line.
Here’s a quick sampling of SmartCompany stories from the past two months on the ATO pursuing SMEs:
- ATO continues spotlight on business owners who wrongly claim travel deductions: Questions to ask before making a claim
- More than 400 SMEs to receive visits from the ATO as it ramps up focus on Australia’s cash economy
- ATO sounds warning on R&D tax claims for software companies: What startups need to know
- ATO has its eye on SME owners’ social media accounts: Why you should make sure your tax records are in order
The ATO has certainly picked up the public mood recently in going after bigger multinationals, and it has a big case on its hands with American energy giant Chevron right now, but it’s still finding time to play schoolyard bully with SMEs.
Fair Work is also always ready to pounce on business owners. And compliance obligations could be getting even stricter if the Fair Work Amendment Bill 2017 is passed.
According to payroll compliance company TANDA, the proposed change could see companies liable for far bigger penalties if they fail to comply with the law, with a tenfold increase in fines for companies from $54,000 to $540,000 and individuals from $10,800 to $108,000. That increase might be wearable for big firms, but would kill off most smaller businesses.
Some of the issues surrounding the attitude of the Fair Work Commission towards small business were aired recently when former vice president Graeme Watson resigned. As SmartCompany reported:
“Watson was also critical of the Fair Work Commission’s unpredictable approach to unfair dismissal cases, claiming business operators don’t trust that they will be protected from employees who have been let go because of underperformance.”
If looking over your shoulder for regulators is not enough, big business and banks won’t think twice about trampling all over SMEs in pursuit of their goals or simply viewing them as ‘marks’ for upselling, rather than treating them as valued clients and business partners.
Judo Capital* co-founder Joseph Healy hit the nail on the head in his article in The Australian about the lack of trust between small businesses and big banks. As Healy says:
“Big banks are now not so much about the traditional relationship practices of trust and depth of understanding, but more about selling — a never-ending push to upsize, to offer more products.”
No wonder SMEs are so wary.
Returning to our brand manager’s original question: “How can we get them to trust us?” Treating them with some trust, respect and support would be a good start.
*I am a board member of Judo Capital.
Be honest about your situation: How vulnerability helps businesses thrive Sue Parker DARE Group founder
Own it: The 10 things you need to do to manage your personal brand Lisa Stephenson Who Am I Projects founder
Six invaluable lessons: What 20 years in aged care taught me about being an entrepreneur Natasha Chadwick NewDirection Care founder
An entrepreneurial superpower: Eight tips to help develop resilience Adala Bolto ZADI Training co-founder
Going through a lull? Five areas you should invest in when sales drop Tamara Alaveras and Sonia Majkic 3 Phase Marketing co-founders
Pet-food lickers and changing-room strippers: Why you’ll never sell to people you don’t understand Ian Whitworth Scene Change co-founder
Blandification™ and the state of modern branding Jeffrey Oley The Offices co-founder
Why you should find the right role for the right person — not the other way around Bruce Stronge Outfit founder