Small business owners in Australia are no doubt busy enough as it is, constantly locked in fierce competition with other companies across the country. However, it is equally important for businesses to take a wider view and see how they are contributing to the economic wellbeing and global competitiveness of the country.
This was a topic explored in McKinsey Australia's 'Compete to Prosper: Improving Australia's global competitiveness' report, which was published earlier this year. The report outlined that although this country's economy is doing relatively well on a global level, efforts must be maintained to drive its ongoing global competitiveness.
In fact, it stressed that increasing competitiveness is "job number one for Australia's long-term prosperity". As such, it examined the key activities businesses in the country should be engaging in to foster its global presence, as well as the industries that can play a big part in these efforts.
According to the McKinsey report, promoting more trade activity is the first step to securing Australia's future competitiveness. Australia ranks fairly poorly against other developed countries in terms of international trade. For example, South Korea has a ratio of exports to GDP of 57 per cent - compared to just 21 per cent for Australia. This puts Australia behind key global competitors and partners such as the UK (32 per cent), New Zealand (29 per cent) and China (27 per cent).
Therefore, it is perhaps not surprising that industries such as manufacturing were identified as the ones that need to step up to drive Australia's competitiveness. McKinsey labelled sectors like food manufacturing and advanced manufacturing as 'Latent Potentials' - those in which Australia is a contender, but not yet a winner.
By pushing these sectors into the 'Advantaged Performers' segment (where Australia is strong and has the power to compete globally), the country can take a huge step towards raising its profile.
For businesses operating in these sectors, there is a range of tools and services they can use to maintain their own growth, profitability and competitiveness. Manufacturing is a sector that is particularly suited for debtor finance, for example, with businesses able to use it to enhance their cash flow.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].