CONFIDENCE levels among small business operators in Western Australia have dropped slightly compared to this time last year, but many are still cautiously optimistic, according to the Small Business Development Corporation.
SBDC acting managing director Jacky Finlayson said a flash poll undertaken by the SBDC last month revealed that almost 50 per cent of small business operators are expecting the economy to work in their favour over the next 12 months.
“Almost two-thirds of respondents are also saying they expect sales or revenue to increase over the next year, so the outlook for 2011 is looking good,” Ms Finlayson said.
“On the flip-side, three quarters of respondents expect the cost of supplies and materials to increase, and just over a third expect the cost of employing staff to be more expensive than last year.”
Small business operators are expecting a return to tight labour market conditions, with 70 per cent of respondents expecting the process of recruiting staff to be more difficult in 2011 compared to 41 per cent last year.