South Australia. Getting on with business. 2017 Annual Small Business Statement SMALL BUSINESS IS AT THE HEART OF THE SOUTH AUSTRALIAN ECONOMY. P2 2017 SOUTH AUSTRALIAN SMALL BUSINESS STATEMENT GOVERNMENT OF SOUTH AUSTRALIA P3 Northern Adelaide’s Meat Kings P4 2017 SOUTH AUSTRALIAN SMALL BUSINESS STATEMENT GETTING ON WITH BUSINESS D&S Quality Meats facebook.com/dsqualitymeats/ Brothers Danny and Shane Gramazio They’ve faced some ups and downs since then, grew up working in their parents’ particularly the dent to business confidence in northern Adelaide following Holden’s closure Dublin butcher shop before deciding announcement. But with a strong focus on to go out on their own, buying their growth, smart and affordable advertising, and first store in Springbank Plaza in finding and retaining quality staff, the Gramazio Burton at the age most young men brothers weathered the storms and made the most of the downturns by taking up leases in are thinking of buying their first car. empty shops. “We brought all our knowledge of what we had learnt In 2015 the second D&S Quality D&S Quality Meats now employs in our parents’ country store and we tried to replicate Meats outlet opened at Blakes 30 staff in stores located at it in the city,” says Danny. Crossing, and the business Angle Vale, Blakeview, Burton, has since grown rapidly across “We quickly noticed that city people were very northern Adelaide. Mawson Lakes, Munno Para, different with their eating and shopping habits. With the assistance of the Small Smithfield and Golden Grove. “Country people are happy to take frozen meat and Business Development Fund, buy in bulk as they don’t like shopping very often. D&S Quality Meats has been able to continue its But city people buy nightly, deciding what’s for tea strong growth. They have recently opened their at around 4pm on the day, so they needed quick- eighth store at Gilles Plains to feed the thriving cooking, easy meals. communities of Adelaide’s north. “We came up with a few new products and built a “2017 has started with retail being very negative, good relationship with our customers, always giving not just in the north, but everywhere,” says Danny. them the same great quality we had in the country but with more pre-prepared, ready-made meals.” “Even though our sales are down a bit, we aren’t worried and we’re not going to buy into the Two years after starting their business, the brothers negativity that we have seen almost every year were running a successful small business and turning for one reason or another. over a healthy profit. “We are just focusing on what we are doing and sticking to our business plan of providing customers great quality meat with quick and easy ready-made meals for busy people on the go.” GOVERNMENT OF SOUTH AUSTRALIA P5 Our service now offers educational early learning programs for 106 children from six weeks to six years of age. Olivia Greiner, Director Confident Kids Child Care and Early Learning Centre P6 2017 SOUTH AUSTRALIAN SMALL BUSINESS STATEMENT Contents GETTING ON WITH BUSINESS A message from the Minister for Small Business 08 D&S Quality Meats 05 Small business snapshot 10 Vale Plumbing 17 Economic Priorities 11 Iguana Creative 21 Coordinated small business services 12 Specialist Vehicle Alliance 22 SMALL BUSINESS ACTION PLAN 14 Newsmaker 23 Small business highlights 30 Dirtybits Pty Ltd 24 Looking ahead 32 BZpay Holdings Pty Ltd 24 Focus on future industries 34 Microbric 27 Investing in our strengths 36 Confident Kids 38 Investment Attraction South Australia 40 Meat Industry Council 39 Look North 42 Tonsley 44 Blue Lake Dairy Group 41 Appendix 1 46 Catalyst Cloud Solutions 45 GOVERNMENT OF SOUTH AUSTRALIA P7 A message from the Minister for Small Business Small businesses remain at the We’ve expanded our Job Accelerator Grant heart of South Australia’s economy, Scheme to encourage small businesses to take on apprentices and trainees, and our new $120 with 98 per cent of our state’s million Future Jobs Fund grants and loans program 143,000 businesses employing will support businesses in key sectors to grow fewer than 20 staff1. and create jobs for more South Australians. We’ve established the Excellence in Business Fund The past year has seen significant gains for our – Growing South Australian Businesses, to co-fund small businesses. The number of South Australian industry-led programs and initiatives that build the 2 businesses has increased , and more of our businesses capability and competitiveness of our state’s businesses. than ever are exporting their products and services around the world3. South Australia’s businesses And we’ve strengthened the powers of the also survive longer than anywhere else in Australia, Industry Advocate to hold contractors to their which reflects well on our economic environment4. commitments to use local businesses and local workers for government projects. The South Australian Government is committed to making our state globally connected, competitive We recognise that effective consultation with the and the best place to do business. We recognise small business community is critical to delivering the challenges our businesses face, and we’re a strong, competitive sector, and that’s why I determined to do all we can to support them established the Small Business Round Table in and to remove any barriers to doing business. 2014. Feedback from more than 50 participating industry associations has helped to inform the Access to reliable, affordable and clean power is actions in this 2017 Small Business Statement. one of these challenges, and that’s why we released the $550 million Our Energy Plan. We’ve already While we still have much work ahead to ensure begun to deliver on the plan, leading the way in small businesses continue to grow and create jobs ground-breaking renewable energy technologies in coming years, the 2017 Small Business Statement and systems to ensure emergency back-up power. celebrates the success of policy and reforms we’ve put in place and looks to the future as we strive to We’re also committed to ensuring our small business make South Australia the best place to do business. environment is competitive and cost-effective. 1. ABS 8165.0 - Counts of Australian We’ve permanently cut payroll tax to 2.5 per cent Businesses, including Entries and for small businesses, phasing up to the general Exits, Jun 2012 to Jun 2016. rate of 4.95 per cent for businesses with a 2. Ibid. payroll of more than $1.5 million, which will 3. ABS 5368.0.55.006 - Characteristics benefit an additional 1300 employers. of Australian Exporters, 2015-16. 4. ABS 8165.0 - Counts of Australian Hon Martin Hamilton-Smith MP Businesses, including Entries and Minister for Small Business Exits, Jun 2012 to Jun 2016. P8 2017 SOUTH AUSTRALIAN SMALL BUSINESS STATEMENT The 2017 Small Business Statement highlights the successes and achievements of small businesses over the past year, our progress against the Action Plan set out in last year’s Statement, and what we’re planning to do over the coming year to help our small businesses thrive in local, national and international markets. GOVERNMENT OF SOUTH AUSTRALIA P9 Small business snapshot Industry contribution by small business9 There are more than 140,000 small Construction contributed 15% of the businesses (employing 0-19 FTE) in South small business sector’s share of GSP and 98% Australia = about 98% of all businesses5. accounted for 18% of the sector’s workforce. Professional, scientific and technical services 2% of businesses are medium contributed 8% of the small business sized (20-199 FTE) and 0.1% sector’s share of GSP and accounted 2% are large (200+ FTE)6. for 12% of the sector’s workforce. Small businesses employ about Agriculture, forestry and fishing 36% of the South Australian contributed 11% of the small business 36% workforce (2014-15)7. sector’s share of GSP and accounted for 13% of the sector’s workforce. Small businesses contribute New South Australian businesses have $35 billion to the economy annually, a 57.2% survival rate, up from 54% in $35b (2014-15) – up from $34 billion8. 2016 and the highest in Australia10. 5. ABS 8165.0 - Counts of Australian Businesses, including Entries and Exits, Jun 2012 to Jun 2016. 6. Ibid. 7. Econsearch Estimates of Small Business Data for South Australia 2014-15, commissioned by the Department of State Development. 8. Ibid. 9. Ibid. 10. ABS 8165.0 - Counts of Australian Businesses, including Entries and Exits, Jun 2012 to Jun 2016. P10 2017 SOUTH AUSTRALIAN SMALL BUSINESS STATEMENT Economic Target Progress Increase the number of Objective achieved small businesses exporting 24 per cent growth from 2013 to 2016 (Figure 1)11 Priorities by 10 per cent. Establish new private sector Objective achieved financial market capacity to $50 million South Australian Venture Capital Fund fund emerging businesses. launched in July 2017 Ensure business leaders Objective achieved have the capability to The South Australian Early Commercialisation Fund South Australia's 10 Economic Priorities attract external capital. launched in November 2016 aim to develop and boost our key Increase the number of small Objective not yet achieved sectors, such as tourism, health, food and medium businesses The number of small and medium businesses in and wine, education and resources, by 5 per cent each. South Australia has increased in 2015-16 following and of course small businesses. the South Australian Government’s tax reforms and changes to the Return to Work scheme (Figure 2)12. The targets that relate to small business Recent government initiatives continue to support are detailed in the table, right.