Two separate surveys have painted differing pictures of the small business landscape in Western Australia with one finding business conditions have deteriorated while the other found owners were generally optimistic.
Two separate surveys have painted differing pictures of the small business landscape in Western Australia with one finding business conditions have deteriorated while the other found owners were generally optimistic.
Sensis and the Small Business Development Corporation WA today released their findings after interviewing small businesses in the state.
The SBDC's small business expectations for 2010 survey was conducted in December last year, and indicated that business confidence levels had significantly improved on the previous year's survey.
The survey found business owners were generally more upbeat with 76 per cent of respondents expected sales and revenue to rise in 2010, compared with 39 per cent in 2009.
Sixty one per cent expect selling prices to increase, up from 49 per cent, while 82 per cent of respondents expect their profits to increase or stay steady, up from 50 per cent.
More than half of the respondents, 55 per cent, expect the cost of employing staff to rise this year, compared to 31 per cent in 2009.
Respondents to the Sensis survey also found finding and keeping staff to be one of the key challenges during the March quarter.
Sensis interviewed 1,800 small business owners early last month.
According to the Sensis Business Index, the employment indicator, which points to hiring intentions, dropped from 6 per cent to negative 2 per cent.
Wages and salaries are also a concern, with the indicator falling from 14 per cent to 7 per cent.
Overall, the survey found that business confidence had softened during the March quarter from 56 per cent to 50 per cent.
"After rising for three consecutive quarters, WA's business confidence indicator has fallen substantially this quarter, but remains slightly above the national average," Sensis report author Christena Singh said.
"Profitability is considerably down from last quarter, as well as been weaker than it was 12 months ago."
The profitability indicator dropped from 5 per cent to negative 8 per cent and the sales indicator has been driven into negative territory for the first time in nine months to 7 per cent.
Overall the key problems respondents said were lack of work, cash flow, staff retention and hiring, and accessing credit to fund ongoing operations or expansions.
The survey found that 35 per cent of WA small businesses felt it relatively difficult to access finance, compared with 18 per cent that felt it was relatively easy.
Meantime, support for the state government improved slightly during the quarter, making it Australia's most popular amongst small businesses.
"Small businesses approve of the WA government because of its infrastructure development, being more supportive of small business and providing financial support," the report said.
