It's the layers of compliance requirements that get to Miranda Higgins, CEO of family-owned confectionery manufacturer, Dollar Sweets.
"As a medium-sized business, we're at that awkward size: We don't have an HR department or even a member of staff whose sole responsibility is dealing with these issues," she said.
"Bigger businesses have whole departments, even global departments, at their disposal, but we have to absorb these requirements into other roles within the business.
"A lot of these compliance issues are becoming incredibly expensive and time consuming. It's sapping the resources out of businesses such as ours."
Not sustainable
Meeting sustainability requirements is just one of the compliance challenges Melbourne-based Dollar Sweets must navigate.
"We are subjected to a system through which we are audited in everything from payroll-related issues to processes and systems," Ms Higgins said.
"It touches on OH&S, food safety and even things like child labour, which is not relevant for an Australian manufacturer, but because it's a global standard, we're drawn into this requirement.
"We do so many positive things in the sustainability space — we recycle, we're signatories to the national packaging covenant, we're RPO-certified, we are focused on waste reduction and improving our carbon footprint — but it's not enough."
Paperwork for the sake of paperwork
"Interestingly, the number of pages of the audits gets longer, and the hoops we have to jump through keep increasing, yet the number of product recalls seems to go up every year," Ms Higgins said.
"All this paperwork is not actually helping to manage risk. It feels like paperwork for the sake of paperwork.
"At Dollar Sweets, it pretty much sits in every department: It falls on me, the quality team and operations. The finance team is also involved because a lot of it sits in the payroll and HR space.
"Meanwhile, we've already got WorkSafe, unions and safeguards to make sure we're doing the right things.
"These extra layers of compliance and regulation seem excessive, but we have no choice but to comply.
"Big business might be ticking boxes, but they don't realise the implications down the chain and the costs to SMEs.
"The last thing businesses need is more costs. It's very difficult to absorb and unfortunately a point comes where you simply have to pass on these costs to customers."
Breaking point
Ms Higgins says an auditor told her recently of a family-run farming business at breaking point over compliance requirements.
"He said they were in tears, saying: 'We simply can't do this.'
"There are issues we ourselves aren't sure how we're going to tackle. We have been told the next audit is likely to be more onerous.
"It's very difficult for companies even smaller than Dollar Sweets. Some won't be able to meet these requirements, which means they won't be able to supply to the major retailers."
A streamlined approach
Anything the next government can do to encourage big business to not push that onus down on smaller businesses would be welcome.
"Obviously, there are requirements that are critical that we will continue to meet, but it does feel like big businesses keep layering on more and more requirements that don't add any value," Ms Higgins said.
"I don't think government understands the level of onus being pushed down the supply chain. They don't realise it flows the whole way down: whether you're a huge manufacturer or small.
"There aren't easy answers, and the government can't necessarily control much of what's happening in this space — but when they put requirements such as those relating to sustainability on big companies, it flows to us, whether that's the intention or not.
"It would be amazing if the next government could help address the burden of compliance requirements thrust upon SMEs.
"It's just adding cost and time and making things more complicated."
Focus on productivity
"We're looking to expand our manufacturing, and we've got some exciting major projects in the pipeline," Ms Higgins said.
"These projects take valuable time and internal resources. I'd rather our people use their time to focus on growing our business and creating new products."
Dollar Sweets was established in 1947.
"We pride ourselves on creating new and innovative products, which is critical to our ongoing growth and success," Ms Higgins said.
"This is where our focus must be.
"If we don't at least try to draw a line in the sand, compliance requirements will become more and more onerous, to the point where businesses feel it is all too hard.
"Australia needs a great range of vibrant manufacturers in the SME space.
"We talk about being able to manufacture in Australia — let's not make it so difficult."
Miranda Higgins spoke to Ai Group Communications Manager Wendy Larter
