May 19, 2020

How Australia is set to speed up payments to small business suppliers

BHP Billiton
Council of Small Business Australia
Business Council
Business Council Chief Executive Jennifer Westacott
Harry Allan
3 min
How Australia is set to speed up payments to small business suppliers

The Business Council is developing a national voluntary industry code which will support small businesses and SMEs, ensuring invoices are not only paid on time, but ensure world-class payment practises  

The Business Council is developing a national voluntary industry code that would ensure small business suppliers are paid within 30 days of issuing a correct invoice.

The industry-led initiative is recommended in the Business Council’s submission to the Small Business and Family Enterprise Ombudsman’s inquiry into payment times and practices.

The Business Council wants to develop such a code in partnership with the Ombudsman and other industry associations, particularly those representing smaller businesses.

The Ombudsman’s inquiry is considering a range of possible measures to address problems with late payment of invoices and lengthy payment terms, which are sometimes up to 120 days.

Business Council chief executive Jennifer Westacott said the voluntary code would provide a framework for better relations between small and large businesses.

“Large, medium and small businesses are deeply connected, meaning the long-term success of one depends on the success of the other, as does Australia’s overall prosperity,” Ms Westacott said.

“Our research shows activity between large, medium and small businesses is already worth $520 billion a year, so when we work together more productively, it will not only benefit us, it will benefit the Australian economy as a whole.

“Although average payment times have fallen across the economy, many small businesses still report that they are facing unsatisfactory delays in payment.

“It can be tough on small business owners when payment terms are unduly extended or a purchaser pays late. Those effects flow on to the rest of the community because it makes it harder for them to grow.

“A voluntary, industry-led effort to drive change in payments culture and practices should be given time to work before any consideration of regulation, which would impose extra costs on all business and taxpayers.

“We need a culture of cooperation, not compliance.”

In signing up to the code, companies would commit to: prompt and on-time payment of small business suppliers; clear guidance to suppliers about the company’s payment procedures; working with suppliers to improve payments and invoicing procedures, including through use of technology; fair and accessible dispute resolution processes, and reporting on performance against the code.

The code will be finalised in consultation with industry and government and will learn from similar approaches in the United Kingdom, United States and other jurisdictions.

Peter Strong, chief executive of the Council of Small Business Australia, which represents over 350,000 small businesses through its association members, said: “The relationship between businesses of all sizes is normally good but there is a real problem in payment times that needs to be addressed and I congratulate the BCA on this initiative. Only time will tell how well it works but given our mutual needs for simplicity of regulation and changes to company tax we have confidence in getting change.”

Ms Westacott said many large companies were already leading the way by adopting policies and technologies to pay small business faster. For instance, BHP Billiton entitles small businesses to be paid within 30 days. These practices need to become more widespread.

“We believe the code will raise awareness of the importance of prompt payment and lead to widespread, demonstrable improvement in payment times and practices,” Ms Westacott said.

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May 13, 2021

Bytedance CFO to TikTok CEO in 5 weeks: who is Shou Zi Chew?

Kate Birch
4 min
Just five weeks after joining the world’s most valuable startup Bytedance as CFO, Shou Zi Chew has been given the top job at TikTok. So who exactly is he?

When the world’s most valuable startup ByteDance, owner of TikTok, snatched 39-year-old finance exec Shou Zi Chew from the clutches of Xiaomi back in March, and gave the 39-year-old the financial reins of the US$400bn valued company, it was pretty big news.

Not just because it was the first time Bytedance had employed a CFO or that he had landed the only other C-suite position besides CEO Zhang Yiming, but because rumours were swirling that Beijing-based Bytedance was about to float and Chew, who had previously taken Xiaomi through a successful IPO, was being brought on board to do the same.

However, just five weeks into his role as CFO of Bytedance, with speculation growing as to the when and where of an IPO, Chew, who is a Singapore national, landed the top job (CEO) at TikTok too – a role currently considered to be the biggest job in tech – in addition to retaining his CFO position at parent company Bytedance.

The world's most challenging roles?

That's quite a responsibility. Not just because of the popularity of TikTok (think 689 million users worldwide and the world's most downloaded non-gaming app in the first quarter of 2021) and the revenue of Bytedance (US$37bn in 2020), but because the data privacy complications that TikTok and Bytedance have been enduring for a while now, with Chinese and US governments, are not going away.

Complications that led to the departure of TikTok’s previous CEO, former Disney exec Kevin Mayer after just three months in the job, when during his tenure the US government issued two executive orders within eight days aimed at forcing ByteDance to divest TikTok's operations in the US. This is far from TikTok's, or rather, Chew's only challenge. With India, once TikTok's fastest-growing market, now having banned the platform for political reasons, the challenge for Chew will be, where to grow TikTok?

This will no doubt be a business imperative for Chew, in finding a way to both grow the platform and to restructure the business to meet regulatory requirements both demanded by the US and Beijing. As will taking Bytedance through its initial public offering, something that has been rumoured about. According to Reuters, ByteDance has been considering whether to go for a standalone public listing for Douyin, the Chinese version of TikTok, or list some of its Chinese operations, including Douyin and news aggregator Jinri Toutiao, as a package in Hong Kong or Shanghai.

Why is Chew the man for the biggest job in tech?

So, who is this man with so much responsibility on his Singaporean shoulders? And more importantly, is he up to the job(s)? Well, he's used to working with billionaires, having worked for Russian billionaire Yuri Milner‘s internet investment firm DST for five years. In fact, it was here, at DST, in 2013 that Chew first came across Bytedance and where he led a team as early investors in ByteDance – what was then just a small startup housed in a Beijing residential flat.

Chew's credentials are pretty impressive too. Not only does he have an economics degree from University College London and an MBA from the Harvard Business School, where he spent a summer working for a then startup (Facebook), but his experience in some of the world's top companies straddles both tech and finance.

Chew began his working life in investment banking at Goldman Sachs, where he focused on technology, media and telecoms’ investments, before joining private equity firm DST Investment Management as a partner for five years.

He then joined Chinese electronics giant Xiaomi as Chief Financial Officer, where he was the youngest of the C-suite and where he was not only instrumental in securing much-needed financing from investors, but oversaw the company’s Hong Kong IPO in 2018, one of the largest-ever Chinese tech listings and the first-ever IPO in Hong Kiong Stock Exchange to realise dual-class shares.

He spent six years at Xiaomi before being snapped up by Bytedance. And according to the man who hired him, billionaire founder and CEO of Bytedance, Zhang Yiming, Chew's "deep knowledge of the company and industry” will add "depth to the team, focusing on areas including corporate governance and long-term business initiatives. I believe Chew's accession can help us further expand our global business."

Watch this space.

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