SMEs have lost confidence in the last six months, despite most reporting increased or stable income in the last year.
Small-to-medium business owners have lost confidence in the last six months, despite most reporting increased or stable income in the last year.
The latest MYOB Business Monitor Report surveyed over 1,000 SMEs one month prior to the election, and found just 23 per cent of business owners expect the domestic economy to improve within 12 months, a drop from 25 per cent in March.
The proportion expecting an improvement to take one to two years has also dropped, while 26 per cent now expect it to take over two years (up from 22 per cent in March).
These statistics come in alongside a dip in revenue expectations for this financial year, with just 25 per cent expecting a rise in revenue, down from 30 per cent, while the proportion expecting a fall has also increased.
All this is despite the fact nearly 60 per cent of respondents reported revenue as having increased or remained steady over the past year.
Tim Reed, CEO of MYOB says he hopes to see a rise in confidence now that the election result is in, but that research suggests it will be “a slow road to significant improvement”.
“The financial confidence of the country’s small to medium business operators is closely linked to the health of our economy and it is telling us a clear story. They see factors at play such as record-low interest rates and although many welcome the upside, they recognise it as a sure sign the domestic economy is experiencing slowed growth,” says Reed.
The number one concern for small business owners surveyed in the report was rising fuel costs, especially impacting those in Queensland.
Australian Chamber of Commerce and Industry chief executive Peter Anderson says there are four key ways the new Australian government can help boost the SME sector.
- Cut down on the red tape.
Anderson says the ACCI has specific examples of where this should occur in its Too Big to Ignore campaign.
- Simplify the tax system.
“It’s a system which is actually beyond the comprehension of even professionals in the field let alone small-business people who are required to comply.”
- Make it easier to employ people.
- Build better infrastructure.
“Because small-business people are part of local communities and they work inside infrastructure which needs to be as supportive to their economic needs as it does to individuals.”
What are your top concerns for your business? How do you think small businesses will fare under the new government? Share your thoughts below.
