Why I’m Backing Small-To-Medium Businesses In Australia & Beyond

I’ve recognised more and more over the years that Small and Medium Enterprises (SMEs) are the backbone of economies worldwide.

They contribute significantly to:?

1. Employment.
2. Economic development
3. Gross Domestic Product (GDP)

But beyond these impressive statistics lies a deeper, often overlooked role that SMEs play.

Let’s dive into them.?

SMEs act as the backbone of communities.?

I remember growing up where I knew my local butcher, baker, or newsagent by first name.??

They were so familiar to me that in some ways I considered them part of my extended family. They shared in important celebrations when we would buy birthday cakes, meats for special family dinners, and the daily newspaper.

These weren’t just places where my family would buy products.?

I remember them as places where we engage in daily interactions with neighbours, build relationships, and reinforce a sense of belonging to my local community. Much like the kitchen is the gathering place of the home, these businesses were the spaces where communities gather and connect.

In a world that often feels divided, these types of businesses provide a reminder that the world isn’t as frightening as the news might make it seem.?

They remind us that kindness, trust, and generosity can still be found outside of our immediate circles of family and friends. Through daily conversations and simple gestures, local business owners reinforce the idea that goodness exists beyond the headlines, creating a sense of safety and trust within the community.

This role as a backbone and foundation for our communities often goes unnoticed.?

Why??

The contributions of SMEs to the community often go unnoticed because they don’t come with a badge or certification. Unlike larger companies that trumpet their Corporate Social Responsibility (CSR) efforts with grand gestures and glossy reports, SMEs quietly go about their work, supporting their communities in good times and bad.

These businesses often don’t have a “sustainability certification” or a “fair-trade” sticker, but their actions speak volumes.?

They are thinking about how to make their operations more sustainable, how to reduce waste, and how to contribute positively to the local economy. They may not have the resources to chase every new trend or label, but they consistently show up, day after day, investing in the future of their communities.

I recently visited Kick Academy in my hometown of Geelong.?

While they provide a fantastic indoor recreation experience for kids, they also provide a space for parents, families, and communities to gather.?

After talking to the Founders Robbie and Marissa, I was blown away.?

After our chat, it renewed my focus to support more of these types of businesses. They provide intangible and often unrewarded community benefits.?

They carry the weight of the community during hard times, and often share their prosperity during good times.

Fulfilling a Dual Role: Business and Community Service (especially during a crisis)

For many SMEs, being a business owner is about much more than making a profit.?

When I started my law practice, I was based in Lygon St and Fitzroy. Many of my clients in the surrounding areas could not afford my services. But I offered pro-to-low bono work for some of the most disadvantaged citizens in my local community.?

I started my business with the understanding that I was also fulfilling a community service.?

I never broadcast this to the public. But it was a silent undertaking I committed to myself. This dual role becomes most apparent in times of crisis. Whether it’s a natural disaster, economic hardship, or a pandemic, these small businesses step up in ways that larger, more distant corporations often cannot.

Consider the response of a local event management company during the COVID-19 pandemic.?

JT Production Management adapted quickly, pivoting their business models to offer a hybrid service to their clients. From organising 100% virtual conferences to supporting vulnerable artists, the events hosted by JTPM became lifelines for many during these challenging times.?

This agility and closeness to their customers and community allowed Julia and Victor to respond in a way that larger event companies simply could not.

SMEs are often the first to step up when disaster strikes.?

Take, for instance, the recent bushfires in Australia or flooding in various regions across the world.

It’s the local cafés, the independent grocers, and the neighbourhood repair shops that band together to support recovery efforts, whether by organising fundraisers, donating supplies, or simply offering a place for people to gather and find comfort.

The business of business is no longer just ‘doing business’. It’s about social impact, community, and service.

In the context of climate change and sustainability, SMEs have an equally critical role to play.?

I’ve been working on an exciting project.?

Over the last few months, I’ve been conducting interviews with the businesses and community at the Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI). I wanted to find out how SMEs were responding to the environmental sustainability imperatives being placed on businesses.?

To my delight, many businesses were actively working toward supporting these government reforms.?

Whether it related to business operations, becoming net zero, or abiding by trade policy requirements, every business I spoke to was taking the right steps towards a greener future. I was inspired to hear how diverse businesses from manufacturing to construction were changing their business approach.?

But while they have the mindset for sustainable change, these businesses were often not supported appropriately.?

While I was disappointed, I wasn’t surprised. I’ve classified SMEs as the "missing middle" in the global economy—too large to benefit from micro-initiatives but too small to access the resources and advocacy that large corporations enjoy. Many reported not being able to access financing, human capital, or capability.?

Despite this, they contribute significantly to economic and environmental outcomes.?

For example, SMEs account for around 50% of global employment and are responsible for a substantial portion of Greenhouse Gas Emissions. Supporting SMEs in their sustainability efforts not only benefits the economy but also helps communities move toward more sustainable futures.

This study will go a long way in understanding which initiatives I’ll support.?

It’s time for a new movement…

These businesses aren’t just interested in profits.?

They also are interested in people.

These businesses don’t just want to grow at all costs.?

They also care about social impact.

The businesses don’t just want to expand to as many locations as possible.?

They want to be embedded in the community.

These are the businesses that align with the Good Business Community.?

They are creating a movement of good businesses who see social impact as part of their DNA.

I’m ready to support this movement. Will you join me?

Till next time,?

Peter.

P.S - If you want to be part of the Good Business Community, you can start by joining my monthly email newsletter: HERE.