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Policy changes a ‘big deal’ for SMEs

Major policy initiatives implemented by the Federal Government in recent months will have a major impact on small to medium enterprises (SMEs), according to a respected accounting and advisory firm.

Marc Peskett, partner of Melbourne based firm MPR Group, believes some major policy initiatives will have a significant impact on businesses for 2010 but will also create new business opportunities and change margins for nimble and niche operators.

He cites five initiatives, the National Broadband Network (NBN); Emission Trading Scheme (ETS); monetary policy through interest rates; new national employment standards and a review of the tax system as the key drivers of change for the coming years.

“While many SMEs are bullish about 2010 they will need to assess the impact these policies may have on their key value drivers of profit, growth, cash and risk if they are to be successful,” he said.

“Depending on the industry you operate in and your competitive position these changes will either present an opportunity or a threat,” he added.

Peskett urges businesses to gain a thorough understanding of how the new initiatives will impact their business and to consider the new financial and procedural impacts their business will have to manage.

“SMEs should expect change, and be prepared to deal with transitional issues and the initial complexity that comes with change.”