August 30, 2010
Despite reporting revenue decreases over the past 12 months, Queensland businesses remain optimistic of a more positive outlook, according to the latest MYOB Business Monitor.
Figures out today show 35 percent of Queensland businesses reported a revenue decrease over the past 12 months, above the national average of 22 percent.
However, half are expecting revenue increases in the future.
On a whole, it is positive for businesses across Australia, with 74 percent of businesses reporting that their revenue is at the same (39 percent) or higher levels (35 percent) than a year ago.
In Queensland, slightly fewer business owners report revenue increases (31 percent) than report revenue decreases (35 percent).
The MYOB Business Monitor also reveals that Queensland businesses are more likely to report lower than usual work in the pipeline over the next three months (20 percent), when compared with other states.
However, while under the national average, 43 percent of business owners in Queensland do indicate that they have more work than usual in the pipeline over the next three months.
Businesses in Queensland identify competitive activity, rising interest rates, and price margins and profitability as three potential clouds on the horizon that will put pressure on their business.
In a positive sign, Queensland businesses are optimistic and a recovery of confidence is anticipated, with half expecting business revenue to increase in the next 12 months.
This is a more positive expectation for revenue than that held by businesses in Western Australia (48 percent), Victoria (47 percent), and New South Wales (44 percent) for the year ahead.
STRONG BUSINESS POLICIES
MYOB CEO Tim Reed says the results clearly indicate that the engine room of the Australian economy has survived the GFC and is now picking up speed.
“Whoever forms government must look to support this momentum with some strong first term business policies,” Reed says.
“The MYOB Business Monitor indicates that around a third of businesses were dissatisfied with Federal Government support prior to the election. Two key areas of concern were highlighted - having to deal with red tape and understanding how new legislation impacted their operations. Both were regarded by almost two thirds of businesses as having a significant impact on their business success,” he says.
“Our research shows there is a clear mandate from business owners for bold policy action to minimise red tape, simplify reporting requirements and reduce the tediousness of a complex array of personal, company, capital gains and fringe benefits taxes.”
KEY FINDINGS
Other findings from the August 2010 MYOB Business Monitor show start-up (<2 years) businesses appear to have fared better over the last year, with 40 percent reporting a business revenue increase over the last 12 months (vs 26 percent of >10 years mature businesses).
Younger business owners (18‐39 years) are more likely (42 percent) to report revenue increases in the past year, compared to business owners aged over 40 years (30 percent).
The most confident about their business revenue increasing over the next 12 months are business owners in start-up businesses (59 percent), professional & business services (55 percent), South Australia (52 percent), and medium businesses with 20-199 employees (52 percent).
Regional based businesses have a higher level of expectation for revenue increases in the next 12 months (51 percent), ahead of city/metro based businesses (46 percent) and rural based businesses (38 percent).