You understand the trends and issues facing businesses in today’s market. What is the mood like?
There are always pockets of businesses doing really well and pockets that aren’t doing so well. From my observations and conversations, I think that the economy is in very good shape – low unemployment, sectors doing well, new businesses starting up. But there’s an element of underlying political uncertainty that’s creating ambivalence around confidence.
What are the key issues for business?
The issue for business is always around certainty. If we know the environment that we’re going to be operating within, if we know the constraints, the parameters, the framework, then business is unstoppable. It’s only when we can’t be sure of regulation and what’s going to be imposed on us that this is undermined. As long as we know the rules, we can innovate around that.
Do you see any sectors that stand out as good investment targets?
I wish I knew the answer to that! This is why through a vehicle like Yarra Capital we like doing direct investment: things can go wrong, but if you own a company and you’re directly involved in a company then you can roll up your sleeves and get it on the right track. We have confidence in ourselves as entrepreneurs, as business people and as investors to be able to solve issues in the businesses that we invest in, notwithstanding that they might be in very unsexy areas. We believe that we have enough business nous to be able to get in there and fix them up as long as we directly hold those businesses.
What is your advice for SMEs?
Innovation, innovation – it’s the key to everything. The businesses that are doing well in retail, for example, are the innovators. They recognise that the internet and social media are now playing a very big role in their industry and they’re embracing it rather than saying ‘let’s impose more taxes on online sales because that’s the only way we’re going to make any money’. And let’s not lose sight – retail is all about serving the customer.
You have long been committed to philanthropy, including through Our Community, a leading social enterprise that provides advice and tools to Australia’s not-for-profit community groups. What motivated you to set up the group?
Our vision was to create an organisation that actually invested in the capacity of the community sector. This was at a time when there was no technology in community organisations … we used to publish a monthly newsletter for $45 a year that aggregated every grant – government, private, foundation – in the country so that community organisations would have that information at their fingertips and could apply for grants. Around that, we created a resource: how to write a grant, how to put a board together, how to do the finances for a community organisation. We also had the first online donation facility that does not take any administration fees whatsoever off the donation. We have collected more than $20 million in 12 years through that online donation facility.
Australians are often accused of not being very philanthropic compared with Americans and Europeans. Is that a fair assessment?
Statistics show that Australians do give less as a percentage of their income to charity and philanthropy. I think that comes out of a very deep-seated cultural belief that governments have a role to play in this area. I believe that in a high-functioning society, it’s not only individuals who should be supporting societies and communities but also government.
