AUSTRALIAN Small Business and Family Enterprise Ombudsman, Kate Carnell, has predicted 2018 will be a year of strong growth for small business exporters.

Ms Carnell said Australia’s International Business Survey 2017 showed there was greater confidence among Australian businesses that are already exporting. 

Ms Carnell said the 2017 Australian Export Awards showcased some great examples, including small business category winner, Tooletries, founded in Brisbane by brothers Josh and Saul Cockburn.

Funded by private capital and a Kickstarter campaign, Tooletries designs and manufactures bathroom accessories such as mirrors, toothbrush and razor holders and wall organisers that can be fixed to vertical surfaces utilising the company’s patented silicone technology.

The company’s products are stocked in more than 1500 retail stores and supermarkets across the US, and are available in Canada, Germany, Japan, New Zealand, Singapore, Taiwan and the UK.

Exports made up 100 percent of Tooletries’ sales revenue in 2016–17.

In agriculture and wholesaling, two thirds of businesses believe the outlook is better than the previous two years, Ms Carnell said.

The report identified China, the United States and United Kingdom as being markets where strong revenue growth would occur.

Commissioned by the Export Council of Australia – with support from Austrade, Australian export finance organisation Efic and the University of Technology Sydney (UTS) – Australia’s International Business Survey 2017 collected the opinions of 941 firms from 19 sectors undertaking international activities in more than 90 overseas markets.  

“Australia is seeing increased growth in exports and small businesses are leading the way,” Ms Carnell said.

“Nearly 88 percent of Australian exporters are small-to-medium enterprises.

“An increasing number of firms are ‘born global’, which means they’re exporting at the very beginning.”

Ms Carnell said the survey findings matched Efic’s exporter sentiment index from August last year, which showed two thirds of respondents expected future sales revenue to increase.

“Potential exporters need to know there is support available from Austrade and Efic to research their markets, make connections and obtain finance,” Ms Carnell said.

“Over the past three years, Efic has worked with more than 262 small businesses and provided more than $350 million in financial support.

“Efic is the Australian Government’s export credit agency; it operates on a commercial basis and partners with banks.

“It’s a model I believe should also be looked at for small business finance more broadly.”

The survey showed just over one third of respondents had applied for finance and almost 40 percent of these were unsuccessful.

Ms Carnell said this illustrated the challenge for small businesses to obtain capital from traditional banks, which require property as security.

“It’s great that more entrepreneurs are getting started with exports, but rapidly growing small businesses need sources of finance that don’t require putting the family home on the line,” she said.

In the survey, small exporters are regarded as those with fewer than 20 employees and annual turnover less than $2million, with exports of less than $2m during the reference period. Large exporters are those with 200 or more employees, or annual turnover of $20million or more, with exports of $20million or more during the reference period. Medium exporters are all businesses other than those defined as small or large.

www.austrade.gov.au

www.abs.gov.au

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ABS CHARACTERISTICS OF AUSTRALIAN EXPORTERS 2015-16

 

 

 

SIZE OF EXPORTER

2013-14

2014-15

2015-16

Large

                               5,782

                               6,085

                               6,275

Medium

                             13,729

                             14,126

                             14,827

Small

                             25,223

                             28,470

                             30,190

Total Goods Exporters

                             44,734

                             48,681

                             51,292

*Source: Australian Bureau of Statistics.

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THE second edition of the Australian Military Sales Catalogue was released this week to promote the products and services produced by Australia’s defence industry internationally.

Defence Industry Minister Christopher Pyne said the first catalogue launched in 2017 had been successful for the companies involved. The second edition features 69 companies manufacturing defence products and providing services to the sector. 

“The Australian Military Sales is an important initiative for us to showcase the vast range of products and services the Australian defence industry can export to our friends and allies to boost their capability,” Mr Pyne said. 

The catalogue lists Australian Defence Force (ADF) equipment featuring a demonstrated viable capability that other countries might seek to purchase.

“It supports our Smart Buyer approach to the acquisition, sustainment and disposal of ADF capability by working more closely with industry,” Mr Pyne said.

“This year’s catalogue has been expanded to include products and services from 69 Australian defence companies – including small and medium enterprises, and companies located across the country including from regional Australia.

“As Minister for Defence Industry, I am constantly reminded of the enormous ability, skill and determination of our Australian defence industry. The Turnbull Government is supporting them in a number of ways including through the Defence Export Strategy I announced with the Prime Minister on 29 January 2018.

“This catalogue is another way for the government to help Australia’s Defence Industry reach the markets of our friends and allies,” Mr Pyne said.

The transfer of ex-ADF equipment to foreign governments is subject to a “rigorous” approval process independent from the Australian Military Sales Office, Mr Pyne said.

www.defence.gov.au/casg/AMSC

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export-feature-img.jpg

THE Export Council of Australia (ECA) has applauded the Australian Government’s leading efforts in establishing a work program to set rules for digital trade at the 11th World Trade Organisation’s (WTO) Ministerial Conference (MC11) this week in Buenos Aires, Argentina.

“Open, transparent and rules-based international trade are critical to Australia’s economic prosperity,” ECA strategic advisor Lisa McAuley said.

“E-commerce, digital trade and the tech start-ups they foster are increasingly important elements of Australia’s trade future. 

“Creating certainty around digital rules and regulations will therefore allow companies in Australia’s digital economy to confidently explore opportunities around the world,” Ms McAuley said. 

Minister for Trade, Tourism and Investment, Steven Ciobo said this initiative would put in place a framework to shape the rules of international e-commerce in the years to come.

It included 70 of the WTO’s 164 members that collectively account for more than 75 percent of global trade, including the US, Japan and the European Union.

Ms McAuley said the agreement would assist in implementing basic standards for digital trade in areas like consumer protection and electronic contracts.

Such standards may play a critical role in removing barriers and complexities to digital trade, with studies finding that around 70 regional trade agreements around the world currently include chapters on e-commerce, according to the ECA.

www.export.org.au

 

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A SERIES of mining equipment, technology and services related seminars, meetings and events took place at Australia Business Week in India 2017 last week

Building on the first Australia Business Week in India in 2015, more than 150 business delegates took part this year. Australia’s delegation met Indian businesses and officials in more than 75 sessions and site visits.

“India is the world's fastest growing major economy and our trade and investment ties with this important partner are becoming stronger each year,” said Assistant Minister for Trade, Tourism and Investment, Keith Pitt, who led the mining services aspects of the trade mission. 

“By 2030, India is forecast to be the third largest economy in the world, and will also have one of the youngest populations,” Mr Pitt said.

“The opportunities for Australian businesses are profound and I congratulate the large number of delegates for joining Australia Business Week in India 2017.”

The business mission overall was led by Trade, Tourism and Investment Minister, Steven Ciobo. Australian Government Ministers planned to visit cities including New Delhi, Mumbai, Bangalore, Kolkata, Hyderabad and Bhopal, but some of those sessions were curtailed owing to localised flooding. 

Mr Pitt said he focused on the energy and resources sector delegation across both New Delhi and Kolkata.

Mr Pitt said Australia was a major supplier of energy to India. Australia’s exports of coal helped to underpin India’s goal of energy security and Australian firms in the mining, equipment and technology services – known as the METS sector -- were also helping to improve the safety and efficiency of India’s mines.

In 2016, India was Australia's fifth biggest export market for goods, the sixth for services exports, and total goods and services exports were worth $14.1 billion.

Mr Pitt said two-way trade had grown from about $609 million in 2004 to $20.7 billion in 2016.

"Two-way trade between Australia and India has grown rapidly but more can always be done to expand our trade and investment ties, particularly by bringing businesses together,” he said.

“Australia Business Week in India 2017 will build on the success of the inaugural event in 2015, which created lasting relationships and generated millions of dollars of business.”

www.dfat.gov.au

https://australiashowcase.com.au/index.php/showcase-3

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