It seems that more than 85 per cent of those who responded to last month's Beilby Rewards are ready to start a small business - but the rest of Australia is simply not interested.

Figures released in April by the Australian Bureau of Statistics have confirmed that the small business sector experienced its slowest ever rate of growth in the two years to 2003. In June 2003, there were around 1,179,300 small businesses in Australia, with more than half of these employing only their proprietor.

During this period, fewer young entrepreneurs emerged on the scene and the number of small business operators aged under 30 dropped by 6 per cent. Although the dot com collapse may still be fresh in people's minds, experts say this is not the key factor.

So why are people not attracted by the prospect of working their own hours, choosing projects that interest them, creating their own organisation, or even earning more money...all the things that last month's survey respondents consider attractive about small business?

Many Rewards members, particularly those aged between 31 and 50, would love to set up a small business, work their own hours, and have the freedom to enjoy activities such as collecting the kids from school or heading out for a daily walk or cycle.

Yet what are the incentives? Is the government doing enough to encourage growth in the small business sector? Has a key business issue now become a social and community issue?

Almost 60 per cent of Rewards members said that financial risk and lack of working capital would stop them from starting a small business. It was not so much the innovation or the concern over gaining regular work that would hold them back but rather a lack of dollars to float their innovative ideas.

Add to the scenario proposed changes to the Bankruptcy Act, which could put the assets of families at risk, no wonder people are thinking twice about venturing into self employment.

Under these proposals, money in family trusts - while relatively safe at present - may become a target for creditors. While the changes are aimed at catching those wealthy people who have declared themselves bankrupt and managed to avoid paying tax by hiding assets in family names, legitimate operators may be adversely affected.