The fallout from the variety of responses around the world to COVID-19 has been the establishment of ‘winners’ and ‘losers’ – both against the virus and economically.
Australia is no different. We’ve all watched the situation in Victoria unfold with great concern and the hope that it can be over as soon as possible. At this stage, Victoria will be in lockdown for longer than any other part of the world, which will almost certainly cause more economic problems.
Some businesses in Victoria will be forced to close and won’t be able to come back. In most cases, they will also lose their ability to borrow from a bank. Entrepreneurs and risk takers will be forced away from the risk of starting a business towards the security of employment – or look elsewhere for opportunity.
South Australia may just be that ‘elsewhere’. Compared with other parts of the country, South Australian businesses have been very fortunate. Already we’ve seen SA’s key economic numbers improve compared to other states. A year ago, our unemployment rate was the worst in the country. Now it appears to be bucking the trend of the rest of Australia and improving, with Premier Steven Marshall recently announcing that SA has recorded the second highest job growth after WA. Across our own client base at Accru Harris Orchard, we’re finding that most businesses don’t need JobKeeper payments anymore, which is another great sign of recovery.
In short, businesses in SA are well prepared for growth and should view the next five years as a once-in-a-lifetime opportunity. Interest rates will likely be low for at least this time frame, and there are many ways to fund expansion or begin start-ups that meet consumer needs in the ‘new normal’.
At Accru Harris Orchard, our mission of helping build great businesses has not changed. During the past six months, we’ve seen clients adapt to the COVID crisis and have helped companies restructure their business models, explore new strategies, eliminate waste and find new ways to serve customers better than ever before.
We see great possibility and innovation ahead. Let’s work together to move SA businesses up and take advantage of our current good fortune.