Western Australian small business confidence has fallen as petrol prices have risen, according to a new survey.
Western Australian small business confidence has fallen as petrol prices have risen, according to a new survey.
In the November 2005 Sensis Business Index released today, report author Christena Singh said business confidence had dropped because of concerns about decreasing consumer demand and the increasing cost of fuel.
Small and medium enterprises (SME) confidence fell five percentage points during the August to October quarter.
"When we asked business operators why they felt worried about their business prospects, they told us they had less business and were concerned about the rising cost of petrol and freight," Ms Singh explained.
"Regional areas have been particularly struck hard.
"Regional business confidence fell 19 percentage points, with nearly three in 10 saying petrol hikes was the main concern," she said.
Overall SME business confidence in Western Australia is at 63 per cent, with metropolitan business reporting at 67 per cent and regional businesses with 46 per cent.
Despite the fall in business confidence, Western Australian SMEs reported solid performance, well above the national average, in all key indicators that measure the health of the sector.
Of note:
- Western Australian SMEs recorded the highest level of expenditure on capital in the nation for the quarter, at net positive two per cent, reversing four quarters of negative net capital expenditure.
- Profitability was at 16 per cent, more than three times the national average of five per cent.
- The number of SMEs reporting increased employment had risen two percentage points to seven per cent, two percentage points above the national average.
SME support for the Western Australian Government fell this quater after a significant increase (15 percentage points) in support in the May to July quarter. The approval rating fell three percentage points to negative 23 per cent. Only the New South Wales Government recorded a lower rating (negative 39 per cent).
The reasons SMEs gave for not supporting the Western Australian Government were:
- Too much bureaucracy and red tape;
- Too many costs and government charges imposed; and
- The belief the government is only concerned with big business.