The property and resources markets aren’t the only sectors undergoing rapid growth at the moment; there’s also been a marked rise in sales by the state’s small-to-medium enterprises, according to national group Sensis.
The property and resources markets aren’t the only sectors undergoing rapid growth at the moment; there’s also been a marked rise in sales by the state’s small-to-medium enterprises, according to national group Sensis.
A recent survey found the sales value indicator jumped 21 percentage points to 30 per cent during the May to July quarter.
Sales growth in Western Australia outpaced the national average by 30 percentage points.
The profitability indicator for WA also rose during the quarter, up 8 percentage points to 20 per cent. The national average is negative 4 per cent.
All this points to the state’s SMEs remaining the most confident in Australia, according to the survey.
Compared with the national average of 45 per cent in confidence for SMEs over the next 12 months, SMEs in WA posted a net balance in confidence of 65 per cent.
The result is a slight fall from the May quarter expectations of 71 per cent, however the result still remains the highest in the land.
The state’s SMEs also recorded the strongest capital expenditure performance for the May to July quarter, with the indicator siting at 10 per cent, while the survey found employment improved considerably and was well above the national average for the quarter.
Expectations for sales and profitability among SMEs in WA over the next year remain high, with next quarter’s sales value increasing 9 per cent to 39 per cent, while profitability is forecast to increase 16 per cent to 36 per cent.
However, the expectations indicator for capital expenditure among the state’s SMEs show a dip in the indicator to 6 per cent next quarter, falling gradually to negative 3 per cent in August-October 2006.
Support for the WA government improved marginally, being one of only two governments in Australia to record an increase in sentiment among SMEs in the past quarter, the survey found.
The rosy outlook for SMEs comes at a time when usage of broadband internet is up, with 80 per cent of the 1,800 interviewed for the July Sensis e-Business having a broadband connection, up from 63 per cent in the previous corresponding year.
Back in 2002, only 17 per cent of SMEs had a broadband connection. In 2003 it was 30 per cent and in 2004 it was 43 per cent, with speed of access being the major driver for connection to broadband.
As was recently reported in WA Business News, data from hotels, resorts, motels and holiday apartment reservations firm, HolidayCity, indicates Australian SMEs made the most online room bookings of any country in 2005, with WA accounting for the highest percentage of room nights booked by SMEs of any state or territory.
The data highlighted the high amount of broadband use by the state’s SMEs as the fundamental reason behind the online travel bookings.
