Kim Macdonald: Closure of kids chocolate crackle stall exposes bureaucracy run wild

Watching your eight-year-old daughter set up her own chocolate crackle shop at the park is one of the more adorable moments of parenthood.

And watching it get closed down by bureaucrats because she did not have a permit is one of its more frustrating experiences.

But there is more to this story than frustration. It points to a potential change in our national character, with Australia at risk of becoming so overregulated, sanitised and risk-averse that there is no tolerance for initiative.

Encouraging an entrepreneurial mindset in the next generation should be a national priority, given Australia is currently suffering low productivity growth and weakening business dynamism.

But before I get to those points, let me set the scene for my daughter Mischa’s short-lived business.

It was a lovely morning at Hyde Park a few weekends ago when she fulfilled her life’s ambition of setting up a cake shop.

Alongside the chocolate crackles, (mostly valued at $1) she also sold 50¢ cups of cordial and some of her own original artwork, which included paper chains and cat pictures drawn across 50 shades of pink paint swatches from Bunnings.

She had initially wanted to give 100 per cent of the proceeds to homeless people, but I convinced her to keep a portion for herself, given my personal belief that social entrepreneurialism becomes self-sustaining over the long-term if there is an element of personal reward.

A homemade sign at her cake stall pointed out that part proceeds went to the homeless.

Testimony to the skills she learnt in this endeavour, we discussed how a key business principal was to ensure the shop was highly visible and that customers could make a swift purchase.

To this end, she decided to buy an electronic card reader, giving her a reason to open her first bank account and learn how money moves in the real world.

She also rather cleverly chose Hyde Park as a location for its heavy foot traffic.

In the weeks leading up to her shop, we had several discussions about profit and loss. Ingredients were purchased, recipes were followed, strict hygiene standards observed and customer service was practiced, including tips on how to handle difficult people.

When a group of 10 teenage girls descended upon the stall, I stood aside and watched her confidence grow by the second as she keyed in each purchase amount and processed the payment through her card reader.

While we sought permission from the delightful owner of the Hyde Park kiosk before selling her two dozen sweet treats, it never occurred to me that she would require an official permit.

That point was hammered home by an official from a stage show at the park that day, who demanded to see a permit before brusquely shutting her down, warning the breach risked having the entire event cancelled.

While her little dreams felt momentarily crushed, she felt supported by nearby visitors and customers who rolled their eyes at the heavy-handed rebuke.

She is not alone in her experience, as there are plenty of well-reported examples of other children and charitable endeavours being closed down across Australia due to a lack of a permit.

While it was an event organiser rather than council which closed the stall in this case, decisions on whether to allow similar shops are usually left to individual councils.

They consider a few different rules, including those affecting temporary food stalls.

Some charitable or community fundraising stalls are exempt from food business registration, but again, it is a bit ad hoc as to who needs a permit and who does not.

I believe this uncertainty discourages similar ventures, despite the Australian Curriculum identifying initiative, problem-solving, adaptability and commercial awareness as important skills that young Australians need to develop.

Even the Australian Securities and Investments Commission expressed concern in its 2021 report called Young People and Money, that while managing finances is a fundamental life competency, it is often left to chance.

I would encourage every parent to help their children set-up shop at some point, given all it teaches the young shopkeepers. And I would call on every council and event organiser to make room for these small-scale ventures.

Let children learn to run a business before bureaucracy teaches them not to bother.