Small Business Friendly Approvals Program 2023

Small Business Friendly Approvals Program

Shire of Esperance Final Report

February 2023

Small Business Development Corporation

Acknowledgement

The Shire of Esperance acknowledges the Kepa Kurl Wudjari people of the Nyungar nation and Ngadju people who are the traditional custodians of this land and their continuing connection to land, waters and community. We pay our respects to Elders past, present and emerging and we extend that respect to other Aboriginal Australians today.

Thank you

Thank you to the following working group members for their contribution to the Shire of Esperance Small Business Friendly Approvals Program

Department Program participant

Office of the Chief Executive

Shane Burge, Chief Executive Officer

Events Neroli Logan, Manager Development and Statutory Services – Project Lead

Planning Richard Hindley, Manager Building, Planning and Land Projects

Building Kelly Waight, Senior Development Officer

Environmental Health

Communications/Marketing

Governance

Assets

Information Technology

Economic Development

Corporate and Community Services – Business Improvement

Small Business Development Corporation

Chantel Spittle, Coordinator Environmental Health Services

Christiane Smith, Manager Marketing and Communications

Sarah Walsh, Coordinator Governance and Corporate Support

Simon Russell, Manager Asset Development

Bradley Cartledge, Senior IT Officer

Trevor Ayers, Manager Economic Development

Paul Trichet, Business Improvement Analyst

Annette Brown, Senior Project and Engagement Officer

The Small Business Development Corporation would like to thank the local businesses who shared their own experiences to help identify improvements to the current approvals processes required to establish and grow a small business in the Shire of Esperance.

Welcome from the Small Business Commissioner

Since the announcement of the pandemic in 2020, governments and businesses have navigated the complexities of doing business in an unprecedented era. This has required the development and acceptance of a new set of learnings to manage and live with COVID-19, both for our communities and those we do business with.

Our WA regional local government partners and their businesses were swift to adapt to the many challenges presented during a period of uncertainty and change. This included intrastate border closures to mitigate the spread of the virus to regional communities, followed by an influx of intrastate tourism, supply issues, and a shortage of workers to meet demand.

What has become evident during the Small Business Friendly Approvals Program (‘Approvals Program’) is the willingness and ability of these local governments to leverage off opportunities that spark innovation and lead transformational change.

Working in partnership with the Shire of Esperance we experienced the energy of a forward-thinking local government that is determined, through its Economic Development Strategy, to sustainably capitalise on a dynamic combination of natural and man-made assets.

Poised to welcome new business investment and encourage existing business growth, the Shire made the most of the Approvals Program by identifying improvements within existing application and approvals processes to support this time of change and opportunity.

I commend the courage of this team, the Executive Leadership Team and Elected Members, to confront the challenges of designing and implementing reforms that will guide small businesses as they navigate the approvals required to not only meet regulatory obligations, but successfully operate within an environmentally sensitive, and much-loved part of the world.

David Eaton Small Business Commissioner Chief Executive Officer Small Business Development Corporation

Project background

Depending on the location and business type, licences and permits may be required at the local, state and federal government level. This multi-layered compliance process can present a host of challenges: firstly, in understanding the processes, followed by identifying which approvals are required, then providing the relevant information to enable an assessment and determination to be made.

Many small business operators face the challenge of starting their business while also working full-time – or worse, have left their job with the intention of starting a business, and have limited understanding of how long government approvals will take.

These entrepreneurs are faced with having to understand lease agreements, obtain finance in a period of high inflation, establish a supply chain and employ workers in challenging circumstances, as well as apply for licences to trade.

For those choosing to invest in a regional area, other complexities may come into play, including distance from the business site during the development phase, and the relocation for career and family.

Our local government partners are also facing many of the stress points being experienced by small businesses, but if the pandemic has dealt us one lesson, it is the role and value of the sector to a community. The SBDC highly respects the recognition by local governments that there has never been a greater need to support the establishment and growth of small business in Western Australia, and have committed what at times are very stretched resources, to participate in the Approvals Program. The Approvals Program aims to assist regulating authorities to reform their approvals regimes and foster a supportive business environment. The process includes identifying issues facing small businesses,

designing reforms to achieve more streamlined approval processes and supporting government authorities to implement those reforms.

A member of the Small Business Friendly Local Governments initiative, the Shire of Esperance was successful, through a competitive application process, to partner with the SBDC to develop a customised Approvals Program implementation plan. The reforms presented in this plan are the result of a detailed examination of the approvals process for a range of small business applicants. It addresses the touchpoints and interactions with small business, from business idea to operation, and looks to develop a series of improvements for officers and applicants.

Enacting the reform initiatives detailed in the action plan will:

• reduce approval timeframes, saving both the Shire and business applicants considerable time and money

• foster a ‘can-do’ business-friendly culture and deliver an improved experience for the Shire’s small business customers

• ensure more efficient and effective use of Shire resources

• align with the WA Government’s Streamline WA reform agenda

Small business is big business in Western Australia, with 227,754 small businesses in the state1

Ninety-seven per cent of all businesses are considered small (fewer than 20 employees).¹

97% of all businesses are classified as small

The small business sector contributes more than $54 billion to WA’s economy and employs almost forty per cent of the private sector workforce.2, 3

are non-employing

are small (1-19 staff)

are medium

are large

1 Australian Bureau of Statistics (June 2020) 8165.0 Counts of Australian Businesses, including Entries and Exits, June 2016 to June 2020, [time series spreadsheet], accessed 25 February 2021.

2 Value of small business to WA economy is an estimate using a revised SBDC model based on previous work undertaken by ACIL Allen using ABS data. All figures are nominal (ie. in 2019-20 dollars).

3 Share of private sector employment is an estimate by ACIL Allen using ABS data. The figure is at June 2020.

Shire of Esperance’s business landscape

Kepa Kurl is the Wudjari name for ‘Esperance’.

‘Kepa’ translates to water and ‘kurl’ to boomerang. Kepa Kurl means ‘where the waters lie like a boomerang’ and refers to the shape of the two bays closest to the Esperance townsite.

Located nearly 700 kilometres and an approximate seven-and-a-half-hour drive from Perth’s central business district, the Shire of Esperance covers an area of over 53,000 square kilometres and extends from Munglinup to Israelite Bay and north to the Daniell rail siding. With a population of nearly 14,0001 residents, Esperance has one of the lowest population densities for its size.

Boasting over 500 kilometres of breathtaking coastline, five national parks, internationally recognised Ramsar wetlands, whale watching, deep sea fishing, diving and walking trails, it’s no wonder that the Shire attracts large visitor numbers and has maintained a stable and sustainable community, recording little population fluctuation or the urban drift often experienced in other regional towns.

Stunning natural features are complemented by diverse seafood enterprises, a thriving $500 million agricultural sector, productive mining industry, the deepest port in southern Australia, busy airport, excellent road and rail links, recently completed $25 million foreshore redevelopment program, town centre revitalisation project and world class primary industries.

As the world rebounds and recovers from COVID-19 restrictions, international and interstate tourism numbers are anticipated to rise again and join the flock of domestic visitors who continued to enjoy Esperance’s beauty and charm through periods of border closures.

A recently finalised tourism strategy puts a spotlight on the opportunities within the industry, further broadening the key objectives of the Economic Development Strategy, which supports high value and value-add industries that will further enhance the Shire’s well-established commercial sectors.

Business opportunities are well recognised and welcomed through the release in 2022 of the Invest in Esperance Prospectus, which demonstrates the Shire’s commitment to attracting and supporting small business as it enters ‘a time of change and opportunity2’ within this thriving, and growing, regional economy.

1i.dcommunity – Shire of Esperance population and dwellings (2021). https://profile.id.com.au/rdage/population?WebID=120

2Invest in Esperance Prospectus - https://www.esperance.wa.gov.au/invest-esperance

Shire of Esperance’s business landscape

Of the 1,710 businesses in the Shire of Esperance, 1,677 (98 per cent) are categorised as a small business, employing 0-19 people, with 955 of those small businesses identifying as sole traders.1

Top four small businesses by industry

Agriculture, Forestry and Fishing

323 (no employees)

262 (0-19 employees)

Construction

137 (no employees)

83 (0-19 employees)

Rental, Hiring and Real Estate

189 (no employees)

17 (0-19 employees)

Professional, Scientific and Technical Services

47 (no employees)

46 (0-19 employees)

1 Australian Bureau of Statistics (December 2021), Counts of Australian Businesses, including Entries and Exits, Shire of Esperance

Application and approvals snapshot for the Shire of Esperance

Data collection across local government authorities differs significantly and often aligns with statutory requirements, as opposed to capturing information to assist in enhancing the small business customer experience.

An example is reported approval turnaround times, which are based on the receipt of ‘complete applications’, rather than the initial application submission date, which may be extended due to requests for additional information and/or sign off by referral agencies and associated regulatory requirements.

The Approvals Program guides local governments to identify improvements in how they provide information, offer dedicated small business support and streamline internal processes. These changes aim to help small business customers submit complete and quality applications the first time, for efficient processing and reduced approval times across departments.

Each day a business opening is delayed due to an incomplete application, and consequent stalled assessment and processing, it is not only costing the business operating expenses, but postpones earnings and employment opportunities.

As indicated in the data sets following, assessment efficiencies can significantly reduce approval times. Being able to start operating as soon as possible generates income, creates jobs and establishes the small business as an active contributor to the community’s social and economic landscape.

A total of 720 residential and commercial applications were received across departments during the 2021/22 financial year

354 (49.17%1) building applications

339 (47.08%) development (planning) applications

27 (3.75%) health applications 1Percentages

2021/22 building applications

354 building applications received 327 building applications determined1,2

82 (25.08%) of the building applications determined related to commercial enterprises4, which included:

13 days is the average time taken to determine certified building applications3

24 days is the average time taken to determine uncertified building applications

24 (29.27%) new build

21 (25.61%) sheds/storage

18 (21.95%) final sign-off to occupy

12 (14.63%) amendment/ additions

3 (3.66%) external works

3 (3.66%) fit-out

1 (1.22%) change of use

1 The Shire of Esperance does not distinguish between complete and incomplete building applications.

2 The difference of 27 between received and determined applications is explained as follows:

20 pending, 4 withdrawn and 3 cancelled.

3 Building does not ‘stop the clock’ during the approval process when further information is required. Therefore, a comparison between complete and incomplete application timeframes cannot be determined due to the software constraints and how data is currently recorded.

4 The number and percentage of applications has been determined using approval types typical to all business types ie. small, medium and large.

2021/22 development (planning) applications

339 applications received

315 (planning) applications determined1,2

The average time to determine business/commercial applications was 26 days3

112 (35.55%) determined development (planning) applications relating to commercial enterprises consisted of4:

7 (6.25%) Accommodation-related applications

1 (0.89%) Animal Establishment

2 (1.78%) Consulting room

1 (0.89%)

(2.67%)

1 The Shire of Esperance does not distinguish between complete and incomplete planning applications.

2 The difference of 24 between received and determined applications is explained as follows: 12 pending, 8 withdrawn and 4 cancelled.

3 Planning does not ‘stop the clock’ during the approval process when further information is required. Therefore, a comparison between complete and incomplete application timeframes cannot be determined due to the software constraints and how data is currently recorded.

4 The number and percentage of applications has been determined using approval types typical to all business types ie. small, medium and large.

2021/22 health applications

27 health applications received

25 health applications determined1,2

39 days is the average time taken to determine health applications3,4

23 (92%) of the health applications received related to commercial enterprises5 and comprised of the following:

1 (4.34%) canteen/kitchen

1 (4.34%) snack bar/takeaway

2 (8.70%) restaurant/cafe

2 (8.70%) market stall

2 (8.70%) mobile food operator

2 (8.70%) retailer

3 (13.04%) beauty/skin penetration

5 (21.74%) caterer

1 The Shire of Esperance does not distinguish between complete and incomplete health applications.

2 The difference of 2 between received and determined applications is explained as follows: 2 pending.

3 The average number of days to approve health applications is skewed higher due to 4 applications with substantial approval durations.

4 Health does not ‘stop the clock’ during the approval process when further information is required. Therefore, a comparison between complete and incomplete application timeframes cannot be determined due to the software constraints and how data is currently recorded.

5 The number and percentage of applications has been determined using approval types typical to all business types ie. small, medium and large.

Program approach

Participation in the Approvals Program for 10 consecutive business days enabled an intense project focus. This included an examination of current practices and a revisit of challenging past applications that required applicants to not only meet the regulatory obligations of small business operations, but address the environmental constraints on land parcels where certain developments are in some way restricted.

Through a carefully crafted and facilitated program journey, participants were stepped through the five steps of design thinking. This approach assisted officers to identify how they might provide better information and streamline departmental practices to support business operators to understand and meet statutory conditions in the most efficient and timely way.

The decision by Executive and support by Council to take staff involved in small business application and approval processes off line for a two-week period aligned with the release of strategic and economic development plans. As demonstrated in the Action Plan developed by the team, the bespoke program stimulated innovation and accelerated reform development for a Shire ready to welcome new investment opportunities.

The five steps of design thinking

Empathise

PrototypeTest

Starting with the customer perspective – empathise

Human-centred design is based on considering the customer perspective.

It is vitally important to hear a customer’s experience first-hand in order to connect to the needs, desires and motivations of real people, and use this to inspire and spark fresh ideas.

The working group was provided with the results of customer experience interviews, which were conducted with small business owners operating in the Shire, who generously provided anonymous feedback about their personal experience.

What was heard

Small business owners praised the efforts of Shire staff, saying their support during a somewhat confusing and complex process was excellent, with all staff always willing to help. In sharing their experiences, the following points were noted:

The extent of the application process was unknown, overwhelming and difficult

Difficult to know what information and level of detail is required

Limited information or guidance on overall process

No clarity on costs

Process can be very complex and confusing

Information was difficult to find on the website

Lots of ‘back and forth’ with additional information required throughout the process

Process could be streamlined and simpler

No checklist or list of requirements

Following the customer feedback, the team put themselves in the shoes of a small business owner. To fully understand and appreciate the challenges of turning a business dream into a reality, the process included creating small business customer personas and different business and event model scenarios.

Based on the Shire’s current process mapping, and drawing on the feedback from small business owners about their challenges in navigating the applications and approvals processes, the next step involved a rigorous journey mapping exercise.

Local government officers traditionally work in departmental ‘silos’ and only deal with the applications relating to specific subject matter and legislation. Looking through the lens of a small business operator who thinks they are just dealing with ‘the Shire” but is potentially dealing with multiple departments within the local government, in addition to external State and Federal agencies, provided a holistic view of the application and approvals journey.

Mapping the process in great detail assisted the cross-functional team to identify and define the challenges, come up with fresh ideas, prototype and test solutions. During the highly productive 10 workshop days, the group identified ways to:

• Improve internal and external customer information and communication

• Engage small businesses early and guide them through the journey

• Develop quality and consistent processes to simplify approvals

The workshop design allowed officers to develop and test their conceptual ideas with local small business representatives. Their support of the work undertaken by the team contributed to the next stage of refining the reform and implementation planning.

Creating a better customer experience through human-centred design – define, ideate, prototype and test

Reform development and implementation planning

Opportunities to support events and attract investment to start, grow or relocate a small business in the Shire of Esperance were identified. These reforms included:

• Providing better information

• A business support service

• Considering automated/fast tracked approvals for selected applications

• Streamlining processes

A series of high-level actions aimed at improving the customer experience, reducing approval times and creating internal efficiencies were developed by the team. This process included identifying:

• How each reform concept linked to community and corporate aspirations?

• What would be needed to achieve the reforms?

• Who would need to be involved to drive this process?

• How long would the reform take to fully implement?

• A summary of the effort, benefit and cost involved.

The following pages summarise the overarching plan developed by the team during the Approvals Program workshop series and, where applicable, identify the reforms aligned to specific event application and approval processes.

This framework is supported by an internal and highly detailed implementation plan, a ‘live’ document that will guide the execution of specific individual tasks, and feed into a reporting mechanism that will track task completion and achievements across the organisation.

Reform area 1: Better information

Develop and review information to be provided upfront to small businesses that is clear, simple and easy to understand so that the regulatory requirements of the approvals processes are met. Action Resources Timeframe1

Approvals

1.1 Review and update the small business landing page on the Shire website.

••••

1.2 Create a visual flow chart and supporting information table to provide small businesses with an overview of the application and approval process.

1.3 Create tailored information packages for specific business models.

•••

HighLow

••••

1.4 Provide visual examples and explanations for different types of plans required for small business applications.

•••

1.5 Create a visual map of the Shire to show what business models are best suited to specific areas/zones (taking into account land/environmental restrictions, special control areas), to provide a broad overview of suitable sites as per business category and alternative sites/opportunity.

••••

1 Timeframe indicates how long the reform will take once the Shire of Esperance commences implementation of the specific actions.

HighLow

Lead: Marketing and Communications Support: External Services, Information Technology, Economic Development

Lead: External Services Support: Information Technology, Marketing and Communications

HighMedium

Lead: External Services Support: Marketing and Communications, Economic Development

HighLow

Lead: External Services Support: ManagerBuilding, Planning and Land Projects, Asset Development Team

HighMedium

Lead: Planning Support: Information Technology, Economic Development, Geographical Information System (GIS) champions

2 Return on investment describes the benefit from the point of view of the small business customer (high, medium or low) where effort is from the point of view of the Shire of Esperance.

Reform area 1: Better information (cont.)

1.6 Make application fees and charges easier to find, understand and calculate on the website, and review fees linked to small businesses to identify those that can be removed.

1.7 Re-design the approval email to make clear the approval is granted with conditions that need to be met prior to operating.

1.8 Review and update the event landing page on the Shire website.

1.9 Create a visual flow chart and supporting information table to provide event applicants with an overview of the application and permit process.

1.10 Develop and publish an event matrix tool.

1 Timeframe indicates how long the reform will take once the Shire of Esperance commences implementation of the specific actions.

Lead: External Services Support: Information Technology, Executive Management Team, Financial Services

Lead: External Services Support: Marketing and Communications, Information Technology

Lead: Marketing and Communications, Event Support Team Support: Information Technology and relevant departments

Lead: Event Support Team Support: Information Technology, Marketing and Communications, Development Coordination Unit and relevant departments

Lead: Event Support Team Support: External Services, Development Coordination Unit, Information Technology, Marketing and Communications and relevant departments

2 Return on investment describes the benefit from the point of view of the small business customer (high, medium or low) where effort is from the point of view of the Shire of Esperance.

Reform area 1: Better information (cont.)

Lead: Events Support Team Support: External Services, GIS champions, Information Technology, Asset Management 1.12

Lead: Event Support Team Support: Development Coordination Unit, Information Technology, Marketing and Communications and relevant departments

1 Timeframe indicates how long the reform will take once the Shire of Esperance commences implementation of the specific actions.

2 Return on investment describes the benefit from the point of view of the small business customer (high, medium or low) where effort is from the point of view of the Shire of Esperance.

Create a map showing locations for events based on attendance numbers and event suitability.

Re-create current Shire of Esperance event documentation.

Reform area 2: Business support service

To help guide small businesses to navigate the complexities of the approval process associated with starting, scaling and re-locating in the Shire by establishing a two-tier business and event support function.

Action

2.1 Create a two-tiered business support function that guides and navigates the small business customer through the application and approvals process, and creates internal efficiencies.

2.2 Develop a workflow, processes, and collateral for the business support function. •• •

Lead: External Services

Support: Marketing and Communications, Customer Service, Records, Information Technology

Lead: External Services

Support: Marketing and Communications, Customer Services, Records, Information Technology

2.3 Develop a post-approval package for customers starting, growing or relocating their small business to the Shire of Esperance.

2.4 Facilitate a partnership agreement with the Esperance Chamber of Commerce and Industry and Shire of Esperance to create and manage a register of local businesses, associated goods and services.

Events

2.5 Create an Event Support Function that guides and navigates the event applicant through the application and approvals process, and creates internal efficiencies. ••• High Low

1 Timeframe indicates how long the reform will take once the Shire of Esperance commences implementation of the specific actions.

Lead: Marketing and Communications

Support: Business Customer Service Team

Lead: Chief Executive Officer

Lead: External Services

Support: Marketing and Communications, Customer Services, Records, Information Technology, Community Development

2 Return on investment describes the benefit from the point of view of the small business customer (high, medium or low) where effort is from the point of view of the Shire of Esperance.

Reform area 2: Business support service (cont.)

2.6 Develop a workflow, processes, and collateral for the Event Support Function.

2.7 Continue communication and support through timely pre and post-event meetings. •••

Small Business and Events

2.8 Pre-lodgement discussion with the Development Coordination Unit for small business queries and events •••

2.9 Develop and present a series of business clinics / workshops aligned with small business needs in partnership with the Esperance Chamber of Commerce and Industry / Business Local program.

••••

1 Timeframe indicates how long the reform will take once the Shire of Esperance commences implementation of the specific actions.

Lead: External Services Support: Media and Communications, Customer Services, Records, Information Technology, Community Development

Lead: Event Support Team Support: Relevant teams e.g. Marketing and Communications, Community Development, Traffic Management, Waste, Parks and Gardens, Building

Lead: Development Coordination Unit

Support: Business Customer Service Team, Event Support Team, relevant officers

Lead: Business Customer Support Team and Business Specialist Team Support: Economic Development, Marketing and Communications

2 Return on investment describes the benefit from the point of view of the small business customer (high, medium or low) where effort is from the point of view of the Shire of Esperance.

Reform area 3: Automated/fast tracked approvals for selected applications

Actively identify and design processes and procedures that reduce imposts on small business based on low or minimal risk and regularly repeated applications.

3.1 Change home business classification to ‘D’ use so that these types of applications no longer need advertising.

3.2 Establish new guidelines that will exempt more small businesses from planning approval.

Approvals

•••

(stage 1)

(stage 2)

(stage 3)

Lead: Manager Building, Planning and Land Projects

HighLow

••••

3.3 Establish a fast-tracked approval process for recurring events (commercial and community). •••

Events

(stage 1)

(stage 2)

1 Timeframe indicates how long the reform will take once the Shire of Esperance commences implementation of the specific actions.

HighLow

Support: External Services, Planning Services, Marketing and Communications

Lead: Manager Building, Planning and Land Projects

Support: External Services, Planning Services, Marketing and Communications

HighLow

Lead: Events Support Team Support: External Services, Development Coordination Unit, and relevant departments

2 Return on investment describes the benefit from the point of view of the small business customer (high, medium or low) where effort is from the point of view of the Shire of Esperance.

Reform area 4: Streamline processes to improve the customer experience

Design internal and external efficiencies in the approvals process based on the small business customer journey to create a better experience for applicants and Shire officers.

4.1 Investigate the opportunity to reduce approval timeframes through parallel processes for planning, building and health applications, by mapping the process and identifying any dependencies.

4.2 Simplify the most commonly used forms by small businesses to improve the approvals process and experience.

4.3 Design a series of bespoke email templates for each technical area, which acknowledges receipt of the application and provides a visual roadmap of the assessment and approvals process.

4.4 Investigate the opportunity for further delegation to Shire of Esperance officers for small business approvals covering, but not limited to, neighbour objections during advertising

Approvals

•••

•••

1 Timeframe indicates how long the reform will take once the Shire of Esperance commences implementation of the specific actions.

Lead: Business Specialist Team Support: External Services

Lead: Business Specialist Team Support: External Services, Marketing and Communications, Information Technology

Lead: External Services

Support: Marketing and Communications, Information Technology

Lead: Statutory Services Support: Directors, Governance

2 Return on investment describes the benefit from the point of view of the small business customer (high, medium or low) where effort is from the point of view of the Shire of Esperance.

Reform area 4: Streamline processes to improve the customer experience (cont.)

4.5 Review current fees and charges for events across the Shire’s approvals process.

4.6 Consider the health approvals process to support the opportunity for registered food businesses to operate as a temporary food business at events.

4.7 Develop a policy framework that enables additional temporary accommodation options for events.

4.8 Propose to Council an annual event sponsorship budget to attract commercial events to the Shire consistent with our strategic goals.

4.9 Create an internal workflow process on TRIM for all events.

Small Business and Events

Lead: Economic Development

Support: Business Specialist Team, Event Support Team, Financial Services, Asset Planning

Lead: Environmental Health Support: Event Support Team, External Services

Lead: Planning Support: Executive Management Team

Lead: Event Support Team Support: Economic Development

Lead: Records and Information Technology

Support: Event Support Team

4.10 Investigate a better lodgement and tracking system for business and event applications.

1 Timeframe indicates how long the reform will take once the Shire of Esperance commences implementation of the specific actions.

Lead: Information Technology Support: External Services, Marketing and Communications

2 Return on investment describes the benefit from the point of view of the small business customer (high, medium or low) where effort is from the point of view of the Shire of Esperance.