RISING interest rates and the cost of obtaining finance to expand are the major concerns for small business in 2010, a recent study of 300 SMEs across Australia has found.
The Council of Small Business of Australia and Telstra Business conducted the poll of SMEs in January to gauge their expectations about the economy and their own business in the year ahead.
The survey found that, although 90 per cent of respondents believed their business would either grow or remain steady this year, 81 per cent of business owners listed the likelihood of higher interest rates as their biggest concern.
COSBOA chief executive Jaye Radisich said the overall economic outlook for SMEs was generally positive, though, with 42 per cent of small businesses owners saying the condition of the economy was better now than six months ago, while 22 per cent considered it to be worse.
Three-quarters of respondents said the cost of finance was also a major concern, followed by changes to taxation arising from the implementation of the Henry Tax Review.
“The cost and availability of credit and finance has been a top issue for COSBOA and small businesses in recent times – it is patently clear that more has to be done to support small businesses in this area,” Ms Radisich said.
“Small businesses need to be able to access affordable lines of credit to ensure that they can properly manage their businesses.”
Eighty-two per cent of respondents said they intend to improve performance this year by reducing debt and developing strong business plans, while 79 per cent said they would take advantage of networking opportunities, and 57 per cent said they would invest in new technology.