Centre for Business Growth

The Hon. P. MALINAUSKAS (15:04): My question is to the Minister for Manufacturing and Innovation. How is the government investing to accelerate the growth of South Australia's small to medium business sector?

Members interjecting:

The Hon. K.J. MAHER (Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Aboriginal Affairs and Reconciliation) (15:04): I thank the honourable member for his question. I also thank the interjections of #theadvicethatterrygave. In terms of investing to accelerate growth in the small to medium business sector, the Treasury has released, as has been talked about in this house already, the Mid-Year Budget Review. I am pleased to say that it included more than $4.2 million over four years to assist small to medium-sized businesses accelerate their growth and support the creation of new job opportunities in South Australia.

This funding will enable the government to partner with the University of South Australia's Centre for Business Growth to deliver business growth clinics to more than 240 South Australian businesses. The centre is led by successful businesswoman and ANZ Chair in Business Growth, Professor Jana Matthews. Professor Matthews has an impressive background. She has been identified as one of 18 women business gurus in the world, was invited to membership of the International Women's Forum and was a finalist recently in the White House Fellows program.

Professor Matthews has also published eight books and over 50 articles and writes extensively about high performance and business growth. The Centre for Business Growth was established at the University of South Australia in 2014 to identify, research and teach the critical knowledge and skills that enable small and medium-sized enterprises to grow.

Since its commencement, the centre has delivered three types of programs: two-hour mini clinics with Dr Matthews and successful entrepreneurs; one-day clinics with Dr Matthews and growth experts; and a much larger nine-day business growth program for chief executive officers and senior staff with Dr Matthews and a number of other experts. This particular new initiative will significantly expand this approach and equip South Australian businesses with the knowledge and expertise to innovate, expand and compete on the global stage.

We know that small and medium-sized business are the engine room of our state's economy, and business accelerators such as this are a good way of growing small businesses into medium businesses, and medium businesses into larger businesses, both employing more people and creating more opportunities. This particular initiative announced in the Mid-Year Budget Review will enable the centre to run 50 one-day business growth clinics for around 240 South Australian small and medium-sized businesses over the four years of the funding agreement starting next year.

In addition, 12 nine-day business growth programs will be delivered to around 120 of South Australia's small to medium-sized enterprises. Company growth will be tracked and analysed and growth inhibitors and accelerators identified. A website will be developed with matched funding from the University of South Australia to provide access for other businesses to access resources, growth frameworks and mentors to help them grow and create job opportunities. If the previous success of the centre's programs are repeated, then the expected outcomes will be significant.

According to the Centre for Business Growth, small to medium-sized businesses that recently completed the program are showing signs of success. Those companies that were involved reported an aggregate increase in revenue of 24 per cent, taking earnings from $132 million to $164 million. Within three years, 10 companies expect to be generating $615 million in revenue. For those businesses that participated, an average growth in profits of 30 per cent was reported, and I understand that those businesses that participated have added 114 jobs to date, with an additional 322 jobs expected over the next year.

If we see that repeated in the program that was announced in the Mid-Year Budget Review, we can expect several thousand new direct jobs from this program through the clinics and business growth programs. In addition, many more companies will receive access to resources and the knowledge required for growth through the website. The clinics and growth programs will be targeted to businesses that are aligned with this state's needs, including in particular Northern Adelaide businesses, automotive component suppliers, businesses involved in health and medical devices, food and wine, ICT and electronics, and regional businesses, particularly within the Upper Spencer Gulf and outback area.

The agreement with the university will include key performance indicators, including activity-based indicators such as the number of companies participating in the clinics and programs and impact measures such as the increase of employment within participating firms. The state government is committed to supporting the accelerated growth of South Australia's small to medium-sized businesses, and through this program we are enabling the outstanding work of Professor Matthews and the Centre for Business Growth to do that. I look forward to informing the chamber of the success of this program in the near future, and taking very difficult and detailed questions from the Hon. Andrew McLachlan on how it is performing and any new recommendations that come out of it.