An election has finally been announced and the implication for business will be a six week period of uncertainty and a fortnight after if things follow the usual script.
In my experience the next two months will be tough for small retailers and hospitality businesses as the uncertainty that the election process brings will make it harder to get customers to spend.
The 2019 budget announcement brought with it a raft of promises for small business owners, as well as the prospect of tax concessions for individuals. While these announcements have made for great soundbites, the public know better than to count their chickens before they’ve hatched, especially so close to an election.
According to new survey results in the Westpac Small Business Report, two in five small businesses reported that the upcoming federal election is impacting their decision making. Results also showed 50% of small businesses are worried or uncertain about the impact election policies will have on their operations, and are therefore choosing to delay growth strategies such as investment or staffing.
If things are shaky now, it is not going to get better for the next few weeks as the election comes into full swing. Scare campaigns from both sides of the parliament are playing on fears of economic mismanagement, government instability, and accusations of unscrupulous behavior by officials, creating a sense of unease among the Australian public.
I have lived through over 20 Federal elections during my business career and there are a lot of regular observations. The closer to the election, the wider the promises and the more likely that businesses will suffer sharp downturns. The aftermath of the election isn’t much better, as it will usually take weeks or months to get back to normal.
As with each election there will be winners and losers, but unfortunately it seems to be the small business operators that bear the brunt of the uncertainty over the next few months. If you are concerned that your business is in going to suffer during the process or you are just wanting to explore your options, give me a call on 1300 023 782 or email email@example.com.