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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2008-09-10 Daily Xml
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FAMILY BUSINESSES

The Hon. I.K. HUNTER (15:44): I seek leave to make a brief explanation before asking the Minister for Small Business a question about the future of family businesses in South Australia.

Leave granted.

The Hon. I.K. HUNTER: Dr Dennis Jaffe, a world renowned leader in the field of family business, visited South Australia last year as part of the Premier's Thinker in Residence program. As Professor of Organisational Systems at Saybrook Graduate School in San Francisco, Dr Jaffe brought his insight, knowledge and experience to South Australia as he examined some of the challenges facing family businesses in this state.

Will the minister provide details of the state government's response to Dr Jaffe's report and its 11 recommendations for providing a positive climate for family business in South Australia?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (15:45): As the honourable member points out, Dr Jaffe visited South Australia in August last year and prepared a significant report on the future of family business in this state based on extensive interviews and analysis conducted during his residency.

As Minister for Small Business, I was delighted last month to release this important report, as well as the state government's response to its recommendations. Dr Jaffe's residency work brought together industry, government and academia in a rare and powerful program. His suggestions, I am sure, will strengthen the support and development of family business in the state. The government supports all of Dr Jaffe's recommendations either in full or in principle, but has adapted some of his ideas to dovetail with existing support available for small businesses.

Dr Jaffe's report provides South Australia with an important reminder of the importance of family business as the cornerstone of the state's economy. His report also highlights the crucial role that government has in helping these businesses to grow and prosper.

As part of the government's response to the Jaffe report, a Family Business Development Manager is to be appointed to the Department of Trade and Economic Development. The family business development manager will work with DTED's nine business enterprise centres and 13 regional development boards to design tools to specifically support family business.

The Small Business Development Council is to be renamed the Business Development Council to reflect its new role in supporting both family and small businesses in South Australia. The council will also establish a family business subcommittee to provide advice on how to implement Dr Jaffe's report and improve the environment for family businesses in South Australia.

I was also delighted to appoint Philip Sims, chair of the South Australian Chapter of Family Business Australia (FBA), to become the new Chair of the Business Development Council. Mr Sims's experience as Chief Executive Officer of Robern Menz will ensure the council can assist the government to deliver a coordinated approach that effectively and efficiently aligns resources to the needs of small and family businesses in South Australia.

With about 85,000 businesses in this state, it is estimated that there are more than 50,000 family businesses in South Australia. The small businesses employ an estimated 55 per cent of the private sector workforce. These businesses face unique challenges, such as managing complex family relationships; working towards a generational succession that respects both family needs and business realities; and maximising the commitment and capability of the next generation.

It is also important that the involvement and advice of Business SA is available to the new council given that a significant proportion of its membership comprises enterprises of 20 or fewer people. To achieve this input, I will be appointing a representative from Business SA to the council shortly.

This government is committed to assisting businesses in South Australia to grow, and these new family business programs will help the government achieve this and ensure that the state is poised to meet its State Strategic Plan targets. The government also aims to better coordinate training and educational programs targeted at family businesses. The number of business advisers able to assist family businesses in South Australia will be increased by linking the existing networks of BECs and RDBs with the work of Family Business Australia.

The state government agrees with Dr Jaffe that it has a role to play in helping to improve the economic and social environment for family businesses in the state. That is why the government will also now seek to ensure that family businesses, the unique issues they face and the programs to help them are on the national agenda to be considered by all states and territories through the Small Business Ministerial Council.

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