Revitalising National Competition Policy: Levelling the playing field for small businesses

The NSW Small Business Commissioner’s submission to the Revitalising National Competition Policy consultation paper identified key opportunities to increase competition and improve outcomes for small businesses and consumers. It emphasised the need for right-sized regulation and greater focus on the rising importance of digital platforms as critical market infrastructure. 

The submission noted the distinct challenges faced by small businesses in competing with larger companies, highlighting issues such as limited resources, economies of scale and regulatory frameworks that do not meet their needs.

“Small businesses are often at a significant disadvantage, not because they’re inefficient, but because regulatory requirements are seldom designed with their needs in mind,” said NSW Small Business Commissioner Chris Lamont. “Small businesses are often at the bleeding edge of innovation — for markets to be competitive, it is essential these firms can compete on their merits, rather than being structurally disadvantaged by poorly designed regulation,” added Lamont.

The submission proposes that policymakers prepare a Small Business Impact Statement (SBIS) when proposing new regulation. The SBIS would assist to better understand the impacts of new regulation on small businesses and avoid disproportionate impacts. 

The submission also addressed the increasing reliance of small businesses on digital platforms. One in four respondents to a recent Commission survey indicated they were conducting operations or selling products or services on a digital platform or online marketplace, and of those utilising digital platforms, one in two indicated that losing access would have a severe or major impact on their business.

“Small businesses are becoming increasingly reliant on digital platforms to buy, sell, advertise, and communicate with their customers and it is a timely opportunity to consider whether existing policy frameworks are fit for purpose,” Mr Lamont noted.

The NSW Small Business Commission’s full submission is available here.