Lack of work impacts SME confidence

The latest quarterly Sensis Business Index (SBI) survey shows business confidence among small to medium enterprises (SMEs) in Australia is steady, yet perceptions of the economy are increasingly negative.

SMEs make up 99% of businesses trading in Australia, and the survey is regarded as a barometer for future activity as it tracks and measures activity over the last three months, expectations for the next three to 12 months and overall confidence levels.

The current survey of 1000 businesses indicates that only 12% of participants believe the economy is growing and that a lack of work or sales is of particular concern, which is a significant barrier to taking on new staff. Opinion of the federal government has become more negative, with an increase in those believing current policy works against small business.

At a state level, the recently re-elected NSW Government is now considered the most supportive state or territory government in Australia, marginally ahead of Tasmania. Perception of the Queensland and Victorian governments is less favourable, with participants citing bureaucracy as a major cause of problems in certain industry sectors.

The building and construction industry is officially the least confident and every surveyed sector (with the exception of communications, property and business services) recorded no improvement in profitability. On the upside, 49% of surveyed businesses are feeling positive about the year ahead and 44% indicate an expectation of increased profitability to come.

A full copy of the report is available here.