July 25, 2011Australia’s small business owners are coping with increased stress but remain confident about prospects for growth, according to
Bibby Financial Services.
The
Bibby Small Business Barometer found 52 percent of those surveyed felt they were more stressed now than 12 months ago. Only 17 percent reported less stress.
“The uncertain economic outlook is creating increased anxiety among proprietors of small and medium size enterprises (SMEs) and is responsible for most of the specific worries that business owners identified,” Bibby’s Managing Director Greg Charlwood says.
The largest single source of stress was managing cashflow, together with back-up funding, to ensure they could pay staff and other expenses on time.
The study indicated that stresses have gained pace in manufacturing and professional services more than any other industry sector in the past 12 months.
Almost half of the respondents (49 percent) in the research, carried out by Galaxy Research on business-to-business (non-retail) small business firms, indicated cash flow as their biggest headache.
This is closely followed by staffing issues.
Three issues vied for third place among the most significant headaches: difficult market conditions, government red tape (compliance and tax administration) and lack of time to enjoy family life.
OPTIMISTIC ABOUT GROWTHDespite the challenges they face, half the proprietors surveyed report their businesses are growing.
A further 29 percent are faring just as well now as 12 months ago, but 21 percent are contracting.
Almost two thirds expect strong to moderate sales growth over the coming 12 months.
In contrast, only 10 percent are pessimistic and expect a decline.
The most optimistic sectors are manufacturing and professional services, with wholesale, trade and transport businesses more pessimistic.
“Proprietors’ optimism about the future prevails despite their biggest headache, cash flow, worsening for many of them,” Charlwood says.
He says the main reason for this is that the payments situation has degenerated.
“Forty-seven per cent now wait longer to be paid for the goods and services they have sold than they waited at this time last year.”
Only 8 percent enjoy more prompt payment.
