19 November 2014
AUSTRALIAN SMALL BUSINESS CONFIDENCE SLUMPS
A new survey from CPA Australia has found slumping confidence in Australia's small business sector.
Chief Executive Alex Malley says the results of the sixth annual Asia Pacific Small Business survey
indicate small businesses are looking for lower transaction costs and the Federal Government's focus on
reducing red tape is the right strategy.
"One of the most notable findings in this year's survey is that only 34 per cent of Australia's small
businesses reported growth over the past 12-months, when our survey last year showed 56 per cent
were expecting growth," Mr Malley said.
"There's also a negative sentiment looking ahead with only 47 per cent of Australian small businesses
surveyed expecting growth over the next 12 months.
"When you consider small business is the engine room of the Australian economy, stalling confidence is
an issue that needs to be addressed.
“The Government’s red tape reduction policy and initiatives to boost small business activity are clearly
well targeted and timed and are what Australian small businesses need to turn around confidence.
"The most cited reason for lack of growth was a poor overall economic environment, followed by falling
sales and rising costs."
Other key findings from the CPA Australia Asia Pacific Small Business Survey for Australia include:
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14 per cent of respondents in Australia expect to add to staff numbers over 2015.
35 per cent of respondents stated that they were likely to seek external financing over the next 12
months.
Only 45 per cent of Australian respondents stated that they use social media for business
purposes such as communicating with customers.
"The weak survey results for small businesses in Australia are in stark contrast to the positive outlook
and results seen in other key markets in our region," Mr Malley said.
"In Indonesia, 82 per cent of small businesses expect to grow next year, for Vietnam the number is 78
per cent while in Mainland China it's 66 per cent.
"Digital innovation and e-commerce is another area of concern. Where less than half of Australian small
businesses are utilising social media for businesses purposes, that number is 90 per cent or greater in
Indonesia, Mainland China, Vietnam and Malaysia.
"These results underscore that we live in a very competitive Asia Pacific region and that Australia is
being out-competed in many respects by our neighbours.
“With six years of data now at our fingertips, this survey is an excellent tool for policy makers and
industry to compare the experiences of small business across eight international markets and ensure
that we have the settings right to enhance efficiency and maximise investment."
The CPA Australia Asia Pacific Small Business Survey provides annual insight into the views of small
businesses across Australia, Mainland China, Hong Kong, Indonesia, Malaysia, New Zealand,
Singapore and Vietnam and form part of a longitudinal study that began in 2009.
The full 2014 report is available for download at: cpaaustralia.com.au/smallbusiness
-ENDSMedia contact:
Bryce Prosser, Media and Communications Manager on 0416 968 444.