31/03/2009 - 09:26

Small business thumbs up for state govt

31/03/2009 - 09:26

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The Western Australian government is the best performing state government in the country in the eyes of the small business community, according to the MYOB Australian Small Business Survey.

Small business thumbs up for state govt

The Western Australian government is the best performing state government in the country in the eyes of the small business community, according to the MYOB Australian Small Business Survey.

Thity seven per cent of WA small business people rated the government's performance as poor or very poor, the lowest proportion of any state, while 16 per cent rated it as very good.

Dissatisfaction with WA government policy has almost halved, down from 62 per cent in June last year when Labor was in power.

It is also well off the national figure, which shows 54 per cent of small businesses think their state government's contribution to the development of small business in Australia is very poor.

Western Australia also pips the federal government in approval ratings, which comes in at a 42 per cent disapproval rating.

But at the state level, WA small businesses think the federal government is doing a better job than its state counterpart, with 33 per cent rating its contribution to small business as poor.

Western Australian small business confidence is keeping up with overall sentiment, with 71 per cent thinking their business is performing well, compared with 72 per cent nationally.

Almost 60 per cent of small businesses nation wide are confident about their future prospects, compared with 51 per cent in WA, a radical drop from 72 per cent in June.

Western Australia was the fourth largest representative state behind New South Wales Victoria and Queensland, with a sample size of 170 out of an overall 1503.

The majority of small business owners across the country are expecting the federal government to call a recession in the next 12 months..

63 per cent of owners believe Australia is headed for recession within a year with high turnover businesses more pessimistic about the immediate future of the economy.

"Australia's small business owners, who are usually highly optimistic, are losing confidence in the economy and this has impacted their confidence in the Federal Government, with 45% of small business owners surveyed believing that the Government has not adequately considered the impact of the financial crisis on small business," MYOB chief executive Tim Reed said.

"However it would seem that this loss of confidence in the Federal Government only applies to the issue of the global financial crisis.

"The percentage of small business owners who have given the Federal Government a poor rating for their contribution to the development of small business in Australia has actually fallen, from 56% in June 2008 to 42% in March 2009 - a positive for the Federal Government."

The survey also found that 43 per cent of small business owners are having a negative impact on sales while 39 per cent have reported an impact on business cots.

Despite many feeling the impact of the global financial crisis, 78 per cent of owners have not spoken with an accountant about developing a plan or strategy to ensure their business survives through a potential economic recession.

 

 

The announcement is below:

 

Small business owners are feeling the impact of the global financial crisis. According to the latest MYOB Small Business Survey, released today, 43% of small business owners surveyed report that the global financial crisis has had a negative impact on sales and 39% report a negative impact onbusiness costs.

The majority, 63%, of small business owners surveyed think that the Federal Government will announce that Australia is in recession within the next 12 months.

Interestingly, higher turnover small businesses are more pessimistic about the immediate future of the economy.

Small business owners with turnover above $1 million are more likely to think a recession will be announced in the next 12 months than those with turnover under $1 million.

"Australia's small business owners, who are usually highly optimistic, are losing confidence in the economy and this has impacted their confidence in the Federal Government, with 45% of small business owners surveyed believing that the Government has not adequately considered the impact of the financial crisis on small business," explains Tim Reed, CEO of MYOB.

"However it would seem that this loss of confidence in the Federal Government only applies to the issue of the global financial crisis. The percentage of small business owners who have given the Federal Government a poor rating for their contribution to the development of small business in Australia has actually fallen, from 56% in June 2008 to 42% in March 2009 - a positive for the Federal Government," says Mr Reed.

"Although small business owners feel that the Federal Government is not adequately considering them in relation to the global financial crisis, when it comes to small business development overall their attitudes seem to be shifting. The recent interest rate cuts could have an impact on this," continues Mr Reed.

"Small business owners are now responding to the financial pressures being placed on their businesses. The latest survey results reveal that as a result of the current economic climate, 42% of small business owners have cut back on business expenses, in areas such as operating costs, advertising, marketing, staff, stock levels and travel," says Mr Reed.

While small business owners are confident with their current business performance, there has been a decline in confidence for business outlook, with just under half (43%) of small business owners surveyed believing their business will perform better than now over the next 12 months. This is down from 56% in June 2008.

"Industry experts are expecting further economic weakness in 2009, and if this eventuates the State and Federal Governments should explore all options to assist small businesses with their cashflow. Small businesses are the core of the Australian economy and are collectively Australia's largest employer. We need them to be in good health as this will prop up the economy," says Mr Reed.

Despite many small business owners feeling the impact of the global financial crisis, the majority (78%) of small business owners have not spoken with an accountant about developing a plan or strategy to ensure their business survives through a potential economic recession.

"The pressure is really building on business owners," explains Mr Reed. "Now more than ever business owners need to step out of the daily chaos and look at the 'big picture'. There are many things they can't control - they should accept those and put energy into what they can control.

Business owners shouldn't be afraid to seek specialist help, such as talking to their accountant about ensuring their business is running as efficiently as possible, particularly in regards to staying on top of cashflow."

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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