Small firms want ombudsman with teeth

Business groups hope small firms are finally going to get an ombudsman "with teeth".

They applaud the federal government's first steps in creating an ombudsman to assist small and family-run businesses.

Small Business Minister Bruce Billson says the ombudsman will provide business an easy way to find out about services and government programs, help minimise compliance burdens, reduce red tape and assist in resolving disputes.

Releasing a discussion paper on Wednesday, Mr Billson wants small businesses to help with ideas on how the role can best meet their needs.

Australian Chamber of Commerce and Industry chief operating officer John Osborn says the discussion paper outlines the creation of an ombudsman with stronger powers.

"The absence of a small business ombudsman with teeth has been a frustration to small business for a long time," Mr Osborn said in a statement.

Australian Retailers Association executive director Russell Zimmerman said it had always been a struggle for "time-poor" retailers to know exactly where to go for assistance.

"The ombudsman will give small businesses the best chance of success," he said.