Insolvency practices will be targeted in a new inquiry by the Small Business and Family Enterprise Ombudsman.

More than 8,000 small and family businesses were pushed into administration over the past year but the banking royal commission didn’t delve into this practice.

The inquiry will be chaired by former Nationals senator John ‘Wacka’ Williams.

Small Business and Family Enterprise Ombudsman Kate Carnell tells Ross Greenwood the system needs to be improved.

“The current system is simply not very small business friendly.

“The processes and the costs of the current system are not very clear to anybody really.”

Click PLAY below to hear the full interview