Victoria University recently released a study that considers community perceptions of small business.

Given the importance of small business to the Australian economy and the vital role SMEs play in many regional and rural communities, community perceptions play an important role in attracting potential entrepreneurs to this sector.

A survey of 652 people nationwide showed community views are stuck in the past. The public views small business as predominantly retail, but also recognise tradespeople and the services sector.

In general, opinions of small business have changed very little compared to 1995, when the study was last undertaken.

Overall, the community views can be summarised as follows:

• Small business is small, it requires long hours, it is risky, but it allows you to be independent.
• If you get it right you can be successful and it can be financially rewarding.
• There is a need for greater skill in small business and tax benefits would help.
• The negatives outweigh the positives but most would let their children make up their own mind.

In an ideal world:

• Small business and entrepreneurship would be highly valued and celebrated within the community.
• Entrepreneurial types suited to business would be attracted to small business as a vocation.
• Regional areas which are dependent on small businesses for their employment and economic vitality would benefit from having the ‘right’ entrepreneurs making a career out of business, being successful and enjoying the flow-on benefits to their respective communities.

What can be done to improve the perception of small business? The report recommends that various levels of Government work to:

• Raise the profile of small business: by celebrating their successes to improve the overall image of small business in the community and by having a better representation of small business in government and the community.
• Take a proactive approach to build entrepreneurial capacity in the community.

For more information see: www.vu.edu.au.