All hands on deck for a do-or-die rescue mission

More than 12% of small businesses closed in 2019, with 293,260 of them exiting stage left. This closure level is hardly a shock as countless challenges threaten to sink our businesses every year and 2020 was even tougher, thanks to restrictions, lockdowns and border closures. Yet failure rates could skyrocket further in 2021 and beyond.

Business turnaround specialist Adam Smith, a director of professional services firm Aurecon and a chartered accountant, says that while the federal government suspended the insolvency laws for financially distressed businesses until December 31, 2020, the number of businesses at risk is expected to rise. “Australian businesses that were already suffering from liquidity issues before the pandemic have only received temporary relief, with the prospect of recovery for many companies still in doubt,”