The Victorian Chamber of Commerce and Industry’s (VCCI) Policy team was given the opportunity to present recommendations around the relationship between competition and productivity for small, medium and family enterprises (SMFEs) at the House of Representatives Standing Committee on Economics Hearing Inquiry into promoting economic dynamism, competition and business formation.

Led by Victorian Chamber General Manager of Policy and Advocacy Dylan Broomfield, and Principal Policy Advisor Sonja Rose, the team’s submission focused on how simplifying the process of regulation will increase productivity and evolve the economy.

Drawing on the experiences of the Victorian Chamber’s members from the Cost and ease of doing business report (2022), Mr. Broomfield shared that the greatest concerns for small business and new entrants were centered around time, not money. Nearly 40 per cent of SMFE respondents highlighted - in respect to regulation - that time spent after hours dealing with the current systems was their biggest issue. Our solution presented to the Standing Committee is to improve the systems of administration, research and development and taxation to make regulation more efficient and effective.

In the realm of businesses seeking to commercialise and innovate, the processes required around early research and development and access to capital markets can be difficult to navigate. The Victorian Chamber's policy team proposed a ‘conduit’ model via a centralised portal to better equip businesses to develop new products and services. This will lead to improved productivity, which in turn will increase economic growth. Mr. Broomfield says a process similar to a “dating app for innovation and commercialisation”, where a third party would help matchmake businesses with the best placed research institution would lead to significant benefits for business, research institutions, and the economy more broadly. Importantly, it would incentivise SMFEs to grow their ideas and productivity.

Mr Broomfield offered that Chambers of Commerce in all states are well placed to provide conduits, or people linked to and who understand research institutions and their capabilities. The Policy team said a conduit would guide a new entrant through the various processes and stages of establishing innovative new business for up to three years, cutting time and duplications, and maximising the outcome of success.

The concept of a conduit would lead to greater competition in the market. “For us, the pathway to disruption is very narrow. If [new entrants] don’t thread the needle really well, the incentive for them to go and try diminishes quite dramatically… Competition could be boosted by allowing…more access into markets through improved regulation, improved access to capital, greater availability of labour and more fluid industrial relations reforms,” Mr Broomfield told the committee.

The House of Representatives Standing Committee on Economics inquiry into promoting economic dynamism, competition and business formation has now completed hearings. The aim is to understand how encouraging healthy competition, stimulating the creation of more businesses and fostering entrepreneurship can enhance the well-being of Australians.