Michaels has further concerns about the economic impact on the state during the next five to 10 years of baby boomer-owned small businesses with no succession plans.

The two issues, she said, helped prompt the government to commit to a new small business strategy for the state that recognises small and family businesses contribute $40 billion to the economy and employ almost 40 per cent of the workforce.

“One thing that astonished me when COVID hit while running my business was these businesses saying if you shut for a week we are going to go bust, what kind of cash flow management do you have?” Michaels said.

“What came through loud and clear is a lot of people maybe don’t have the best fundamental business skills, around cash flow management, how to write a business plan, how to hire and fire people.”

Michaels, who ran a legal practice specialising in tax, succession planning and commercial law prior to joining government, said the process would start with a state-wide consultation.

Dates are now firming up around a series of round tables for metropolitan Adelaide and regions starting in Port Pirie and Port Augusta during September.

A consultation survey with a feedback deadline of October 7 also has been established to hear what support is most needed, with Michaels recognising the sector has been struggling with COVID restrictions, labour shortages and rising cost pressures.

Sectors ranging from hospitality, retail, agribusiness, mining and construction will be involved with Michaels planning to see a draft strategy early next year for small and family businesses that make up almost 98 per cent of businesses in the state.

“We haven’t found the government has ever written a small business strategy,” Michaels, whose business NDA Law is now run by her husband, said.

There are around 150,000 small and family businesses in South Australia and Michaels believed one area of support could be around succession planning.

“A big issue around succession planning is with family businesses, so many are owned by baby boomers and they don’t have the conversation, it’s a real risk to our economy,” she said.

“Some are really switched on and know it’s an issue, for some there will be an issue like cancer or an illness and they realise they need to plan, they are suddenly having this conversation at the worst possible time.”

Roundtables are being planned in partnership with key stakeholders targeting the following industry sectors:

• Construction
• Agriculture, Food, Wine, Brewing and Distilling
• Professional Services (eg lawyers, real estate agents, accountants, pharmacists, doctors)
• Retail, Hospitality & Tourism
• Arts, Culture and Creative Industries

Discussions are also planned in partnership with local councils and regional development boards throughout Adelaide and regions including:

• Kangaroo Island
• Fleurieu Peninsula
• Adelaide Hills
• Riverland
• Gawler & Barossa
• Upper Spencer Gulf (eg Port Pirie, Port Augusta & Whyalla + surrounding areas)
• Eyre Peninsula (centred in Port Lincoln)

Last week the new Office for Small and Family Business was opened in Waymouth Street with new director Kathryn Calaby and about 12 staff to provide a central site for support.