Small business lobby groups says extending Do Not Call Register will hurt SMEs

The Council of Small Business of Australia has lashed out at the Rudd Government’s stance, releasing the results of a study that claims almost 80% of small businesses do not have the resources to manage the proposed changes.

The study, commissioned by COSBOA and online directories firm TrueLocal.com.au and conducted by CoreData, polled 781 SMEs on whether or not the Do Not Call Register should be extended to cover business numbers.

The survey found 58% of businesses were not aware of the changes, while 45% believed the overall cost of operating their business will increase if the DNCR is extended.

Over one in five respondents said they gained business via phone calls and COSBOA says this equates to as many as 440,000 SMEs that could be adversely affected by the changes.

The study found the hardest hit businesses will be in the property, business services, communication, marketing and media industries.

However, the survey also found that opinion is heavily divided among SMEs about whether they will actually list on an expanded DNCR.

COSBOA estimates 30% of companies will add their work numbers to the list if the Government proceeds with the changes as expected.

COSBOA chief Jaye Radisich the Government needs to work to cut red tape, not increase it.

“Phone calls are the most popular source of new business for many industries, especially in the services industries – so we’re concerned that these small businesses will be hampered by the new legislation. Small businesses need to be given a fair go to be able to generate new, local leads to build their businesses.”

TrueLocal.com.au chief executive, John Allan had declared the proposed change would be anti-competitive, as it “will favour big businesses and larger incumbent players who have existing relationships and disadvantage smaller companies working hard to attract new business.”

A Senate inquiry into the extension of the DNCR is due to report on February 24.