SMEs pessimistic on growth prospects: MYOB

Just 3 per cent of Western Australia's small business respondents to a new survey say they are planing to increase staff over the next year, despite SMEs in the state reporting the strongest revenue performance in the country over the last 12 months.

MYOB’s latest business monitor report found 13 per cent of WA SME owners surveyed plan to decrease their full-time head count in the coming 12 months and instead add more part time positions.

The report also found that local business operators were not optimistic about the next 12 months, with only 24 per cent forecasting a rise in revenue, compared to the national average of 32 per cent.

About 52 per cent of business operators in WA expect revenue levels to remain the same, the report said.

That being said, operators are predicting a 30 per cent increased level of work, up from 20 per cent, in the next three months.

“As the state looks for alternative sources of growth, these businesses are only going to become more vital to the health of the regional economy,” MYOB chief executive officer Tim Reed said.

“How successful WA is in transitioning into the new paradigm is going to depend in a large way on small business operators.”

Meanwhile, 23 per cent of local small business operators reported an increase in revenue over the 12 months to August.

That compares to 21 per cent of small business across the country reporting revenue over the same period.

The report said that fewer businesses were reporting a fall in revenue.

Of local businesses, 25 per cent reported a fall in revenue, compared to the rest of the country, which averaged 31 per cent.

“Although the Western Australian economy is coming off the highs it achieved at the height of the mining boom, these latest figures demonstrate that small business in the region is still making progress,” Mr Reed said.