On an auspicious day for family businesses, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) is celebrating their contribution to the economy and neighbourhoods nationwide.
But its recognition of National Family Business Day comes weeks after a statutory review recommended the organisation drop ‘family enterprise’ from its name entirely.
To mark the annual September 19 celebration, Ombudsman Bruce Billson celebrated the parents, couples, and extended relatives devoting their “energy, time, and personal funds” to running a family business.
“Financial and emotional pressures are amplified when many have put their home on the line to build up their business,” Billson wrote on Friday.
“And often, the family dining table is the board table or work zone, impinging on any semblance of work/life balance, adding potential fragility to family dynamics and relationships.”
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Seven out of 10 Australian businesses qualify as family-owned, and four in 10 are run by a couple, according to the Ombud.
Backing family businesses is especially important, Billson added, due to the succession challenge facing many ageing business owners whose children may not want to take over.
“It’s a little too close to comfort to have seen the highs and lows of running their own business,” he said.
Name change recommended in review
Family businesses have been central to the Ombud’s remit, and its name, since the taxpayer-supported advocacy and support organisation launched in 2016.
However, its lengthy name and even its abbreviation to ‘ASBFEO’ have come under question in successive reviews.
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The latest independent review, conducted by former Victorian small business commissioner Judy O’Connell and handed to Minister for Small Business Anne Aly in June, is no different.
“There was overwhelming support for a name change for ASBFEO, as the current name is difficult to
pronounce and does not reflect its functions,” wrote O’Connell.
The review recommends changing the name entirely, giving the organisation a clearer identity and boosting name recognition among the very businesses it seeks to support.
The most popular option among stakeholders is the Australian Small Business Commissioner — which, if formally adopted, would cut ‘family business’ from its title.
Cutting ‘family business’ would not “change the scope or mandate but reinforces the idea of representing the
entire small business community,” according to the report.
“Family enterprises are a significant subset of the small business sector, and ASBFEO’s current remit
covers small businesses that are family enterprises,” it added.
“However, apart from estate planning, as small businesses that are family businesses typically have the same issues as non-family small businesses, it is recommended that ‘Family Enterprise’ is not necessary in ASBFEO’s name.”
Not all stakeholders agreed.
Industry representative group the Family Business Association (FBA), itself the loudest voice behind National Family Business Day, told the review ‘family business’ should stay front and centre.
The ASBFEO’s remit should also cover all family businesses, not just those with fewer than 100 employees or an annual revenue of less than $5 million, it added.
Changing the Ombud’s name is one of 15 recommendations presented by O’Connell.
While the ASBFEO proactively shares a small business perspective in government consultations, other agencies could benefit from a biannual forum focused on SME issues, according to the report.
It could also make guidance materials for dispute resolution “more user-friendly”, and streamline the way it channels requests for help to more suitable state-level agencies.
