In an unfortunate turn of events, small Australian businesses are struggling after corporate collapses caused a sudden economic change.
The increase in insolvencies is causing concerns in communities, as shop owners face financial uncertainty.
The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) is supporting struggling entrepreneurs, but they are overwhelmed by the high number of help requests they receive.
In its latest quarterly report, the ASBFEO noted 1,773 corporate insolvency in Australia between July and August 2023, the most in that two-month period since 2015.
But this isn’t just about numbers, it means that many small businesses are waiting anxiously to get their money back.
In the September quarter, ASBFEO received a huge 67 calls from small businesses asking for insolvency assistance. This is way up from just nine in the previous three months, almost seven times more.
ASBFEO says these requests may seem little, but they are a big deal for the businesses that need help.
One small business owner had to work for a whole day without pay just to deal with a big business that went broke.
Some small businesses don’t even know they are owed money until they talk to ASBFEO. For instance, a family business in construction only found out they were owed $13,000 from a company that went out of business when they called ASBFEO.
Independent workers, such as builders, are having a really tough time too. One builder didn’t get paid for their work and felt lost and alone because they had no money left.
The insolvency crisis is a stark reminder that the resilience of small businesses, the backbone of the Australian economy, is being put to the ultimate test. Their calls for help have grown sevenfold, and they need assistance more than ever to overcome this challenging time.
If you find your business caught in these problems, the solution is just a call away. Contact AVA Advisory today at 1300 181 220 or book a free consultation to help you in this financial distress.
We offer services, including insolvency advice, debt negotiation, and business liquidation avoidance, to name a few.
We’re here to help you. Connect with us today for a discreet and personalized consultation.
