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MYOB Business Monitor The voice of Australia’s business owners

> April 2010

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MYOB Business Monitor April 2010 2

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Quick Link Summary

Over half of Australia’s business owners still expect the economy to begin to improve over the next 12 months.

Reports of revenue decreases are higher than reports of revenue increases.

Just under half of business owners expect an increase in their business revenue in 2010.

While less than half of business owners surveyed were confident about their business prospects in July 2009, over half of business owners are confident of their business prospects now.

More than a third of business owners report higher levels of upcoming work/sales, and one fifth report lower levels than usual.

The majority of business owners surveyed are confident that their business prospects will be somewhat better by this time next year than they are now.

More than half of business owners surveyed are finding it quite or very easy to run their business, while one eighth of them find it quite or very difficult to run their business.

‘Knowing which Government legislation and compliance changes are relevant to my business’ is seen as the most difficult challenge of a number of specific business tasks.

Fuel prices, cash flow, and price margins and profitability, continue to put the most pressure on business owners in the coming year, just as they did in July 2009.

Business owners are most likely to source tax and compliance information or advice from their Accountant.

A third of business owners don’t source information that will help improve their business performance.

Improved supplier relationships and pricing will help make it easier to do business in the coming year.

One fifth of business owners surveyed have increased the variety of their products and services in the last six months.

A third of business owners only refer to their bank statement to track cash flow.

Dissatisfaction with the Federal Government’s support of and contribution to businesses has returned to mid‐2009 levels.

Business owners’ dissatisfaction with their State Government’s support of and contribution to business returns to July 2009 levels.




Table of Contents

Quick Link Summary ................................................................................................................................ 2

About the study ...................................................................................................................................... 7

Reporting by Industry, State and Business Size ...................................................................................... 8

Business owner expectations for economic improvement in Australia ................................................. 9

Business revenue compared with a year ago ....................................................................................... 12

Expectations of business revenue growth over next 12 months .......................................................... 15

Current confidence in present business prospects ............................................................................... 18

Work or sales in the pipeline in next three months ............................................................................. 21

Projected confidence in business prospects in 12 months’ time ......................................................... 23

Overall Ease or Difficulty of running their business .............................................................................. 26

The business tasks which Australian business owners find most difficult............................................ 29

The main pressures on business owners in Australia over the next 12 months .................................. 32

Sources of information or advice on tax and compliance issues .......................................................... 34

Improvements to help make it easier to do business in the next 12 months ...................................... 38

Changes in business activities in the last six months ............................................................................ 39

How business owners track cash flow in their business ....................................................................... 40

Present satisfaction with Federal Government’s support of business ................................................. 41

Present satisfaction with State Government’s support of business ..................................................... 44

Appendix 1 – Perceptions of business prospects and business revenue increases over the next 12 months .................................................................................................................................................. 47

Appendix 2 – Perceptions of Federal Government Performance ......................................................... 48

Appendix 3 – Perceptions of State Government performance ............................................................ 49




Lists and Figures

Business owner expectations for economic improvement in Australia ................................................. 9

Figure 1: Time expectations for future economic improvement in Australia (% of n = 1,000) ....... 10

Figure 1.1 Expectation of economic improvement in the next 12 months: by Number of Employees (% of n=1,000) ............................................................................................................... 10

Figure 1.2 Expectation of economic improvement in the next 12 months: by State (% of n = 1,000) ......................................................................................................................................................... 10

Figure 1.3 Expectation of economic improvement in the next 12 months: by Industry (% of n = 1,000) ............................................................................................................................................... 11

Business revenue compared with a year ago ....................................................................................... 12

Figure 2: Revenue increases vs. decreases last 12 months, as reported by total sample (% of n=1,000) ........................................................................................................................................... 13

Figure 2.1: Revenue increase percentages in last 12 months, as reported by 22% of the total sample (% of n = 221) ...................................................................................................................... 13

Figure 2.2: Revenue decrease percentages in last 12 months, as reported by 36% of the total sample (% of n = 356) ...................................................................................................................... 13

Figure 2.3 Revenue increases and decreases: by Number of Employees (% of n=1,000) ............... 14

Figure 2.4 Revenue decrease percentages reported over last 12 months: by State (% of n = 1,000) ......................................................................................................................................................... 14

Figure 2.5 Revenue decrease percentages reported over last 12 months: by Industry (% of n = 1,000) ............................................................................................................................................... 14

Expectations of business revenue growth over next 12 months .......................................................... 15

Figure 3: Expectations of business revenue in 12 months’ time (% of n = 1,000) ........................... 16

Figure 3.1: Expectations of business revenue in 12 months’ time: by Number of Employees (% of n = 1,000) ............................................................................................................................................ 16

Figure 3.2 Expectations of business revenue increases in 12 months’ time: by State (% of n = 1,000) ............................................................................................................................................... 17

Figure 3.3 Expectations of business revenue increases in 12 months time: by Industry (% of n = 1,000) ............................................................................................................................................... 17

Current confidence in present business prospects ............................................................................... 18

Figure 4: Confidence in their prospects at the present time: by Total Sample (% of n = 1,000) ..... 19

Figure 4.1: Confidence in their prospects at the present time: By Number of Employees (% of n=1,000) ........................................................................................................................................... 19

Figure 4.2: Confidence in their business prospects at the present time: by State (% of n = 1,000) 20

Figure 4.3 Confidence in business prospects at the present time: by Industry (% of n = 1,000) .... 20

Work or sales in the pipeline in next three months ............................................................................. 21

Figure 5 Work or sales in pipeline for next 3 months compared with usual: by Total Sample (% of n = 1,000) ......................................................................................................................................... 21

Figure 5.1 Work or sales in pipeline for next 3 months compared with usual: by State (% of n = 1,000) ............................................................................................................................................... 22

Figure 5.2 Work or sales in pipeline for next 3 months compared with usual: by Industry (% of n = 1,000) ............................................................................................................................................... 22

Projected confidence in business prospects in 12 months’ time ......................................................... 23




Figure 6: Business owner confidence in how their business prospects will be in 12 months’ time: (% of n = 1,000) ................................................................................................................................ 24

Figure 6.1: Business owner confidence in how their business prospects will be in 12 months’ time: By Number of Employees (% of n=1,000) ........................................................................................ 24

Figure 6.2: Confidence in how their business prospects will be in 12 months’ time: by State (% of n = 1,000) ......................................................................................................................................... 25

Figure 6.3 Confidence in how their business prospects will be in 12 months’ time: by Industry (% of n = 1,000) ..................................................................................................................................... 25

Overall ease or difficulty of running their business .............................................................................. 26

Figure 7 How difficult or easy business owners are finding it to run their business: By total sample (% of n=1,000) .................................................................................................................................. 26

Figure 7.1 How easy or difficult business owners are finding it to run their business by business size/number of employees: By total sample (% of n=1,000) ........................................................... 27

Figure 7.2 How difficult or easy business owners are finding it to run their business by business by location. By total sample of (% of n=1,000) ................................................................................ 27

Figure 7.3 How difficult or easy business owners are finding it to run their business by industry. By total sample of (% of n=1,000) .................................................................................................... 28

The business tasks which Australian business owners find most difficult............................................ 29

Figure 8: Difficulties had with certain nominated business tasks (% of n = 1,000) ......................... 31

The main pressures on business owners in Australia over the next 12 months .................................. 32

Figure 9: Pressures on their businesses in the next 12 months (% of n = 1,000) ............................ 33

Sources of information or advice on tax and compliance issues .......................................................... 34

Figure 10: Sources of Information or Advice on Tax and Compliance Issues (% of n = 1,000) ........ 34

Figure 10.1: Sources of Information or Advice on Tax and Compliance Issues: by Number of Employees (% of n = 1,000) ............................................................................................................. 35

Figure 10.2: Sources of Information or Advice on Tax and Compliance Issues: by State (% of n = 1,000) ............................................................................................................................................... 35

Figure 11 Sources of Information on or help with improving business performance: (% of n = 1,000) ............................................................................................................................................... 36

Figure 11.1: Sources of Information on or help with improving business performance: by Number of Employees (% of n = 1,000) ......................................................................................................... 37

Improvements to help make it easier to do business in the next 12 months ...................................... 38

Figure 12: Improvements to make it easier to do business in the next 12 months (% of n = 1,000) ......................................................................................................................................................... 38

Changes in business activities in the last six months ............................................................................ 39

Figure 13: Changes in business activities in last 6 months: Total Sample (% of n=1,000) ............... 39

How business owners track cash flow in their business ....................................................................... 40

Figure 14: Business owners’ main method of tracking their cash flow (% of n = 1,000) ................. 40

Present satisfaction with Federal Government’s support of business ................................................. 41

Figure 15: Dissatisfaction and Satisfaction with Federal Government’s support of business in Australia (% of n=1,000) .................................................................................................................. 42

Figure 15.1: Satisfaction and dissatisfaction with Federal Government’s support of business in Australia: by Business Size/Number of Employees (% of n=1,000) ................................................. 42




Figure 15.2: Satisfaction and dissatisfaction with Federal Government’s support of business: by State (% of n = 1,000) ....................................................................................................................... 43

Figure 15.3: Satisfaction and dissatisfaction with the Federal Government’s support of business: by Industry (% of n = 1,000) ............................................................................................................. 43

Present satisfaction with State Government’s support of business ..................................................... 44

Figure 16: Satisfaction with their State Government’s support for business (% of n = 1,000) ....... 45

Figure16.1: Satisfaction and dissatisfaction with their State Government’s support of business in Australia: by Business Size/Number of Employees (% of n=1,000) ................................................. 45

Figure 16.2 Satisfaction and dissatisfaction with State Government’s support for business: by State (% of n = 1,000) ....................................................................................................................... 46

Figure 16.3 Satisfaction and dissatisfaction with the State Government’s support for business: by Industry (% of n = 1,000) .................................................................................................................. 46

Appendix 1 – Perceptions of business prospects and business revenue increases over the next 12 months .................................................................................................................................................. 47

Figure 17: Businesses’ confidence in business prospects and expectations of business revenue increases over the next 12 months (Total Sample % n=1,000) ....................................................... 47

Appendix 2 – Perceptions of Federal Government Performance ......................................................... 48

Figure 18: Businesses’ perceptions of the Federal Government’s performance in contributing to the development of and supporting businesses in Australia .......................................................... 48

Appendix 3 – Perceptions of State Government performance ............................................................ 49

Figure 19: Businesses’ perceptions of their State Government’s performance in contributing to the development of and supporting businesses in Australia .......................................................... 49




About the study This report presents the summary findings for key indicators from the MYOB Business Monitor comprising a national sample of 1,000 business proprietors and directors, conducted in March 2010. The businesses participating in the online survey are defined as both non‐employing and employing businesses with 0 employees (‘sole traders’), 1‐4 employees (‘micro businesses’), 5‐19 employees (‘small businesses’) and 20‐199 employees (‘medium businesses’). Results have been weighted to reflect the business population distribution according to the Australian Bureau of Statistics (ABS) for company size, length of time operating, region, and selected ANZSIC Industry divisions (refer to ABS publications Characteristics of Small Business, 2004; 8127.0 and Counts of Australian Businesses, June 2007; 8165.0). Industries have then been grouped (see next page) for the purposes of providing meaningful results based upon sample segments of reasonable size, and with a lower margin of error. This research report was prepared by The Financial Research Company and fieldwork was completed by Colmar Brunton (a Millward Brown Company) for: MYOB Naomi Helleren (03) 9222 9951 [email protected] www.myob.com.au The key indicators presented in this report include: Business Issues:

Expectations for future economic improvement

Business revenue compared with 12 months ago

Expectations of business revenue in 12 months’ time

Current confidence in present business prospects

Projected work or sales for the next 3 months compared with usual

Projected confidence in business prospects in 12 months time

The overall ease or difficulty of running their business

The difficulty or ease they have with a number of specific business tasks

The main pressures on businesses over the next 12 months

Sources of information or advice on tax and compliance issues

Sources of information about improving business performance

Improvements to help make it easier to do business in the next 12 months

Changes in business activities in the last 6 months

How business owners track cash flow in their business Government:

Present satisfaction with Federal Government’s and State Government’s support of business




Reporting by Industry, State and Business Size

The findings of this research are reported by industry type: (Industries have been grouped as follows for the purposes of providing meaningful results based upon sample segments of reasonable size, and with a lower margin of error. Occasionally in this report, industries have been de‐grouped where there are very different results between those in an industry grouping.)

The findings of this research are also reported by State for some questions, and the sample size in each State is as follows:

The findings of this research are also reported by the number of employees in each of the businesses surveyed and was capped for companies with less than 200 employees. The proportions of sole, micro, small and medium businesses are in line with their proportions of all businesses in Australia.

Industry Sample

Agriculture, Manufacturing and Wholesale 146

Construction, Trades and Transport 281

Finance and Insurance 121

Professional and Business Services 230

Retail and Hospitality 155

Other Industries (not included above, but included in total results) 67

Total 1,000

State Sample

New South Wales (NSW) 338

Victoria (VIC) 285

Queensland (QLD) 173

South Australia (SA) 80

Western Australia (WA) 90

Other States and Territories 34

Total 1,000

Number of Employees/Business Type Sample

0 Employees/Sole Traders 513

1‐4 Employees/Micro Business 313

5‐19 Employees/Small Business 114

20‐199 Employees/Medium Business 60

0‐199 Employees/ Sole, Micro, Small, Medium Businesses 1,000




Business Issues

Business owner expectations for economic improvement in Australia Over half of Australia’s business owners still expect the economy to begin to improve over the next 12 months. 54% of business owners surveyed expect economic recovery to begin to improve from its present position in the next 12 months While in the last survey (November 2009), 58% of business owners surveyed expected the economy to start to improve within 12 months, their optimism about the economy has now fallen slightly to 55%. (See Figure 1) Business owners are now slightly less optimistic While in the last survey, 33% of business owners surveyed expected recovery within the next six months, 27% now expect the economic recovery to be within that period of time. (See Figure 1) Sole traders slightly more optimistic than other business owners 56% of sole traders surveyed believe the economy will improve in the next 12 months, compared with 52% of micro business owners, 51% of small business owners (who were the slightly more positive sector in July 2009) and 52% of medium business owners. (See Figure 1.1) Business owners in Western Australia remain most optimistic, while South Australia business owners are now least optimistic about economy This renewed confidence (since July 2009) has remained highest in Western Australia, where 62% of business owners believe the Australian economy will start to improve within 12 months, whereas only 47% of business owners now share this opinion in South Australia. New South Wales is the only State where confidence has risen (+1%) since November 2009. (See Figure 1.2) Business owners in the Agriculture, Manufacturing and Wholesale industries remain slightly less optimistic about the economy Business owners in the Agriculture, Manufacturing and Wholesale industries are slightly less optimistic than others, with 50% of them expecting the economy to improve within 12 months time, compared with 60% owners of Finance & Insurance businesses who expect the same. (See Figure 1.3)

Base: Business owners and directors (n = 1,000) Q. When do you believe that Australia’s economy will start to improve from its present position?




Figure 1: Time expectations for future economic improvement in Australia (% of n = 1,000)

Figure 1.1 Expectation of economic improvement in the next 12 months: by Number of Employees (% of n=1,000)

Figure 1.2 Expectation of economic improvement in the next 12 months: by State (% of n = 1,000)

12%

15%

27%

20%

9%

8%

8%

Next 3 months

3‐6 months

6‐12 months

12‐18 months

18‐24 months

>2 years

Don't Know

54%

56%

52%

51%

52%

ALL

SOLE (0)

MICRO (1‐4)

SMALL (5‐19)

MEDIUM (20‐199)

54%

56%

53%

51%

47%

62%

AUS

NSW

VIC

QLD

SA

WA

Mar 10 Nov 09 Jul 09

12% 16% 6%

15% 17% 12%

27% 25% 27%

20% 22% 27%

9% 9% 10%

8% 6% 10%

8% 4% 8%

Mar 10 Nov 09 Jul 09 54% 58% 45%

56% 55% 45%

53% 63% 35%

51% 57% 45%

47% 63% 40%

62% 68% 50%


54% 58% 45%

56% 61% 45%

52% 58% 44%

51% 55% 49%

52% 62% 47%




Figure 1.3 Expectation of economic improvement in the next 12 months: by Industry (% of n = 1,000)

50%

53%

60%

58%

51%

Agriculture, Manufacturing and Wholesale

Construction, Trades and Transport

Finance and Insurance

Professional and Business Services

Retail and Hospitality


50% 51% 47%

53% 61% 43%

60% 55% 49% 58% 65% 48%

51% 59% 40%




Business revenue compared with a year ago Reports of revenue decreases remain higher than reports of revenue increases. Only 22% of business owners surveyed report an increase in revenue over the last 12 months While 39% of business owners surveyed indicate that their business revenue has not changed in the last twelve months, 36% report a decrease in business revenue, and only 22% report an increase in business revenue since that time. (See Figure 2) Revenue increases and decreases of between 10‐29% most often reported The 22% of business owners reporting a revenue increase over the last 12 months most commonly report an increase of 10‐29%. The 36% of business owners reporting a revenue decrease most commonly report a decrease of the same percentage (10‐29%). This indicates that the percentage increases in revenue have been greater and the percentage decreases in revenue have been lesser in March 2010 when compared with the November 2009 survey. (See Figure 2.1 and Figure 2.2) The more employees businesses have, the more likely they have enjoyed business revenue increases compared with a year ago Medium business owners report more business revenue increases (32%) than other businesses, and less business revenue decreases (33%) than all but small business owners. 24% of small business owners report revenue increases, and 33% report business decreases, compared with 23% of micro business owners who report revenue increases and 38% who report business revenue decreases. Only 21% of sole traders report business revenue increases, while 35% report business reveue decreases compared with a year ago. (See Figure 2.3) Business owners with $5m+ annual revenue and own a start‐up business most likely to have increased revenue 39% of business owners who have $5m+ annual revenue and 34% of business owners who have a start‐up business are the most likely to have experienced a business revenue increase in the last twelve months. New South Wales business owners report most revenue decreases 38% of business owners in New South Wales report a decrease in revenue over the last twelve months, compared with between 32% and 35% of business owners in the other States. Fewer Queensland business owners (32%) report revenue decreases in this survey. (See Figure 2.4) As in the November 2009 survey, business owners in the Agriculture industry report revenues down more than other industries 49% of business owners in the Agriculture, Forestry and Fishing industries report business revenue decreases (48% in November 2009) over the last twelve months, compared with only 30% of business owners in the Finance & Insurance industries. The business owners reporting the most revenue increases are in the sectors of Professional and Business Services (25%), and Finance and Insurance (24%). (See Figure 2.5) Base: Business owners and directors (n = 1,000) Q. At the present time, is your business revenue (or gross turnover or sales) up or down on a year ago, or about the same? Please indicate how much your business revenue (or gross turnover or sales) is up or down on a year ago? (Please type in the percentage in the box below)




Figure 2: Revenue increases vs. decreases last 12 months, as reported by total sample (% of n=1,000)

Figure 2.1: Revenue increase percentages in last 12 months, as reported by 22% of the total sample (% of n = 221)

Figure 2.2: Revenue decrease percentages in last 12 months, as reported by 36% of the total sample (% of n = 356)

22%

39%

36%

3%

Increase

Remain the same

Decrease

Don't know/not sure

12%

32%

23%

12%

7%

12%

0‐9%

10‐19%

20‐29%

30‐49%

50‐59%

60% or more

6%

31%

26%

19%

13%

5%

0‐9%

10‐19%

20‐29%

30‐49%

50‐59%

60% or more

Mar 10 Nov 09 Jul 09 Increase 22% 22% 19% Same 39% 35% 35% Decrease 36% 39% 39% Don’t know 3% 4% 7%

Mar10 Nov 09 Jul 09

12% 11% 16%

32% 33% 29%

23% 25% 28%

12% 12% 10%

7% 7% 8%

12% 11% 9%


6% 6% 7%

31% 24% 24%

26% 30% 23%

19% 23% 21%

13% 10% 14%

5% 7% 11%




Figure 2.3 Revenue increases and decreases: by Number of Employees (% of n=1,000)

Figure 2.4 Revenue decrease percentages reported over last 12 months: by State (% of n = 1,000)

Figure 2.5 Revenue decrease percentages reported over last 12 months: by Industry (% of n = 1,000)

32%

24%

23%

21%

33%

33%

38%

35%

MEDIUM (20‐199)

SMALL (5‐19)

MICRO (1‐4)

SOLE (0)

Increases Decreases

36%

38%

35%

32%

35%

34%

AUS

NSW

VIC

QLD

SA

WA

49%

40%

36%

30%

33%

40%

Agriculture, Forestry and Fishing

Manufacturing and Wholesale





Decreases

Mar10 Nov 09 Jul 09 35% 37% 38%

38% 43% 40%

33% 37% 41%

33% 42% 41%


36% 39% 39%

38% 39% 44%

35% 37% 40%

32% 45% 37%

35% 37% 37%

34% 36% 35%


49% 48% 40%

40% 31% 40%

36% 44% 44%

30% 34% 33%

33% 31% 32%

40% 43% 44%




Expectations of business revenue growth over next 12 months Just under half of business owners surveyed expect an increase in their business revenue in 2010. 48% of business owners expect an increase in revenue over next 12 months While only 22% of business owners surveyed report revenue increases in the last 12 months, 48% expect to increase their business revenue over the next 12 months, 33% believe it will remain the same, and 12% believe their business revenue will decrease in the next 12 months (7% are unsure). (See Figure 3) While 54% of business owners expect the economy to improve in the next 12 months (see earlier), not all of them expect this to translate into revenue gains for their business. Optimism about revenue increases has not yet returned to its pre‐global financal crisis level in September 2008 The 48% of business owners who predict a revenue increase over the next twelve months compares with 53% who predicted a revenue increase over the next year in the September 2008 MYOB Small Business Survey. (See Figure 3)

Owners of start‐up businesses are more optimistic about expected business revenue increases 62% of owners of start‐up businesses of less than 2 years are expecting revenue increases in the next twelve months. Owners of small and medium businesses slightly more optimistic than others Owners of small businesses (53%) and medium businesses (52%) are slighly more optimistic about expected revenue increases than owners of micro businesses (48%) and sole traders (47%). (See Figure 3.1)

Business owners in Western Australia remain the most revenue optimistic and the most revenue pessimistic Western Australian business owners are the most optimistic (51%) about revenue increases and most pessimistic (16%) about revenue decreases in the next 12 months. Queensland business owners are now the second most optimistic (50%) about a business revenue increase in the next 12 months. (See Figure 3.2) Low optimism in the Agriculture, Forestry & Fishing and Construction & Trades industries Only 37% of business owners in the Agriculture, Forestry & Fishing industries and 41% in the Construction & Trades industries envisage an increase in business revenue in the next 12 months (lower than the overall average), while the majority of business owners in the Finance & Insurance (59%) and Professional and Business Services industries (56%) now expect business revenue increases in that time. (See Figure 3.3) Within the Professional and Business Services industry segment, Property and Real Estate Professionals (67%) remain the most optimistic of all, just as they were in November 2009.

Base: Business owners and directors (n = 1,000) Q. And how do you expect your business revenue (or gross turnover or sales) in 12 months’ time to compare with your business revenue at the present time?




Figure 3: Expectations of business revenue in 12 months’ time (% of n = 1,000)

Figure 3.1: Expectations of business revenue in 12 months’ time: by Number of Employees (% of n = 1,000)

48%

33%

12%

7%

Increase

Remain the same

Decrease

Don't know/not sure

52%

53%

48%

47%

48%

8%

14%

10%

13%

12%

MEDIUM (20‐199)

SMALL (5‐19)

MICRO (1‐4)

SOLE (0)

ALL (0‐199)

Increases Decreases

Mar 10 Nov 09 Jul 09 Increase 48% 46% 37% Same 33% 35% 36% Decrease 12% 12% 15% Don’t know 7% 7% 13%

Increases

Mar 10 Nov 09 Jul 09 48% 46% 37%

47% 45% 37%

48% 46% 35% 53% 48% 37%

52% 50% 35%




Figure 3.2 Expectations of business revenue increases in 12 months’ time: by State (% of n = 1,000)

Figure 3.3 Expectations of business revenue increases in 12 months time: by Industry (% of n = 1,000)

48%

48%

47%

50%

47%

51%

AUS

NSW

VIC

QLD

SA

WA

37%

43%

49%

41%

59%

56%

48%

Agriculture, Forestry, Fishing

Transport

Manufacturing and Wholesale

Construction and Trades




Mar 10 Nov 09 Jul 09 Mar 09 Dec 08 Sep 08

48% 46% 37% 45% 44% 53%

48% 44% 35% 41% 41% 50%

47% 46% 33% 46% 46% 55%

50% 47% 43% 53% 46% 53% 47% 43% 38% 39% 34% 50% 51% 48% 36% 42% 43% 53%

Mar 10 Nov 09 Jul 09 Mar 09 Dec 08 Sep 08

37% 30% 35% 38% 41% 43%

43% 30% 28% 48% 29% 53%

49% 45% 34% 46% 44% 53%

41% 42% 48% 39% 36% 44%

59% 50% 47% 55% 54% 56%

56% 54% 46% 49% 48% 61%

48% 48% 33% 42% 48% 59%




Current confidence in present business prospects While less than half of the business owners surveyed were confident about their business prospects in July 2009, over half of business owners are confident about their business prospects now Business confidence in present prospects still not fully recovered from the global financial crisis In the September 2008 MYOB Small Business Survey, 68% of business owners were confident about their business prospects in the coming year. This dropped to 47% in the July 2009 MYOB Business Monitor, and has now recovered slightly, with 53% of business owners confident about their business prospects at the present time and only 20% expressing concern about their business prospects. (See Figure 4) Owners of medium businesses and start‐ups are more confident 62% of start‐up businesses and 61% of medium business owners are confident about their business prospects at the present time, compared with 57% of small business owners, 53% of micro business owners and 53% of sole traders. (See Figure 4.1) Business owners in Western Australia, Victoria and South Australia regain most confidence Business owners in Western Australia (53%), Victoria (59%) and South Australia (57%) have returned to the levels of confidence that they had in their present business prospects in March 2009, while business owners in other States are still behind those levels of confidence held a year ago. (See Figure 4.2)

Business owners in the Finance & Insurance industry more confident than others 65% of business owners surveyed in the Finance & Insurance industry are confident about their present business prospects now (60% in November 2009), and are more confident than business owners in the Agriculture, Manufacturing & Wholesale industries (45% combined, but only 37% of business owners in Agriculture are confident about present business prospects) and Construction, Trades and Transport industries (53%), and Retail and Hospitality industries (52%). (See Figure 4.3)

Base: Business owners and directors (n = 1,000) Q. Thinking about the present, how confident or concerned are you about your business prospects now? (Prior July 2009 Question: Thinking about the next 12 months, how confident do you feel about the prospects for your own business?)




Figure 4: Confidence in their prospects at the present time: by Total Sample (% of n = 1,000)

Figure 4.1: Confidence in their prospects at the present time: By Number of Employees (% of n=1,000)

12%

41%26%

17%

3%Very confident

Quite confident

Neither

Quite concerned

Very concerned

53%

53%

53%

57%

61%

ALL (0‐199)

SOLE (0)

MICRO (1‐4)

SMALL (5‐19)

MEDIUM (20‐199)

Quite/Very Confident

Mar 10 Nov 09 Jul 09 12% 11% 10% 41% 41% 37% 26% 27% 29% 17% 17% 20%

3% 4% 4%




Figure 4.2: Confidence in their business prospects at the present time: by State (% of n = 1,000)

Figure 4.3 Confidence in business prospects at the present time: by Industry (% of n = 1,000)

41%

43%

46%

33%

40%

40%

12%

11%

13%

13%

17%

13%

AUS

NSW

VIC

QLD

SA

WA

Quite Confident Very Confident

35%

43%

49%

43%

41%

10%

10%

16%

15%

11%

Agriculture, Manufacturing, Wholesale

Construction, Trades, Transport

Finance & Insurance


Retail & Hospitality


Mar 10 Nov 09 Jul 09 Mar 09 Dec 08 Sep 08 45% 50% 38% 58% 56% 53%

53% 47% 40% 52% 59% 74%

65% 60% 63% 67% 68% 73%

58% 60% 58% 63% 61% 78% 52% 42% 43% 57% 63% 69%

Mar 10 Nov 09 Jul 09 Mar 09 Dec 08 Sep 08 53% 52% 47% 59% 61% 68%

54% 51% 43% 59% 61% 63%

59% 56% 49% 60% 63% 67%

46% 51% 51% 59% 56% 70%

57% 51% 51% 59% 58% 70%

53% 49% 50% 51% 75% 75%




Work or sales in the pipeline in next three months More than a third of business owners report higher levels of upcoming work/sales in the pipeline, and one fifth of business owners report lower than usual levels. Close levels between business owners who report more work/sales in the pipeline and those who report about the same While 41% of business owners surveyed report about the same amount of work/sales as usual, 37% report more, and 21% report less. (See Figure 5) Business owners in Victoria now have the best ratio of more work/sales to less work/sales, while business owners in Queensland now have the worst 41% of business owners in Victoria report more work/sales in the pipeline, with only 19% of business owners in that State report less work/sales than usual. In Queensland, 27% of business owners report more work/sales and 29% report less work/sales in the pipeline than usual. (See Figure 5.1)

As in the November 2009 survey, the larger the business, the more likely to report more work/sales While 33% of sole traders surveyed report more business than usual in the pipeline, 39% of micro business owners, 43% of small business owners and 49% of medium business owners report more sales/work in the pipeline than they would normally expect to have at this time. Business owners in the Finance and Insurance industry report more business in the pipeline than usual 42% of business owners in the Finance and Insurance industry report better than normal work or sales in the pipeline. Business owners in the Transport industry report the best recovery since the November 2009 survey, when only 17% reported that they had more work than usual or expected in the pipeline, whereas 35% now report more work than usual in the pipeline. (See figure 5.2)

Base: Business owners and directors (n = 1,000) Q. Please indicate how much work you have got on, or what sales you have in the pipeline, in the next 3 months, compared to what you would usually expect or normally have. (Please select one only) Figure 5 Work or sales in pipeline for next 3 months compared with usual: by Total Sample (% of n = 1,000)

9%

28%

41%

15%

6%1%

A lot more

A little more

About the same

A little less

A lot less

Don't know

Mar 10 Nov 09 9% 10% 28% 27% 41% 33% 15% 20% 6% 9% 1% 2%




Figure 5.1 Work or sales in pipeline for next 3 months compared with usual: by State (% of n = 1,000)

Figure 5.2 Work or sales in pipeline for next 3 months compared with usual: by Industry (% of n = 1,000)

37%

38%

41%

27%

35%

40%

21%

18%

19%

29%

19%

24%

AUS

NSW

VIC

QLD

SA

WA

More than usual Less than usual

34%

40%

31%

35%

42%

38%

38%

19%

21%

28%

18%

20%

21%

18%

Agriculture, Forestry & Fishing

Manufacturing & Wholesale

Construction & Trades

Transport

Finance & Insurance



More than usual Less than usual

More Work in Pipeline

Mar 10 Nov 09

37% 37%

38% 35%

41% 38%

27% 35%

35% 42%

40% 35%

More Work in Pipeline

Mar 10 Nov 09

34% 31% 40% 39% 31% 37%

35% 17%

42% 40% 38% 40% 38% 36%




Projected confidence in business prospects in 12 months’ time The majority of business owners surveyed are confident that their business prospects will be somewhat better by this time next year than they are now. Compared with present business prospects, there is even more confidence and less concern about business prospects 12 months from now While 53% of business owners surveyed are confident about their business prospects at the present time, 61% are confident about their business prospects in 12 months’ time, which is 10% higher than recorded in the July 2009 survey. (See Figure 6)

Medium business owners are extremely confident about business prospects in 12 months time In July 2009, owners of medium businesses (78%) were by far the most confident about their future prospects. This confidence level has fallen to 68%, 4% above the July 2009 level. The confidence about their future prospects of all other business owners in this survey is almost the same as it was in November 2009. (See Figure 6.1) Confidence in future business prospects varies only slightly by State, although there are more ‘very confident’ business owners in South Australia The renewed confidence in business prospects in 12 months’ time seen in November 2009, is still evident across all States in this survey, with business owners in Western Australia the most confident overall (64%), and business owners in South Australia slightly more likely to be ‘very confident’ (19%) than business owners in other States. Confidence has recovered best from its July 2009 levels in New South Wales (+13%). (See Figure 6.2) Business owners in the Construction, Trades & Transport industries have strengthened their confidence the most 11% more business owners in Construction, Trades & Transport (60%) are now confident in their future business prospects compared with responses in the November 2009 survey (49%). Business owners in Finance & Insurance remain the most confident (72%) of all, although Professional and Business Services owners (excluding Finance & Insurance) are 8% less confident (64%) than in November 2009 (72%). (See Figure 6.3) Base: Business owners and directors (n = 1,000) Q. Thinking about how your business will be in 12 months time, how confident or concerned are you about your business prospects in 12 months time?




Figure 6: Business owner confidence in how their business prospects will be in 12 months’ time: (% of n = 1,000)

Figure 6.1: Business owner confidence in how their business prospects will be in 12 months’ time: By Number of Employees (% of n=1,000)

15%

46%

22%

14%

3%1%Very confident

Quite confident

Neither

Quite concerned

Very concerned

Don't Know

61%

59%

59%

63%

68%

ALL (0‐199)

SOLE (0)

MICRO (1‐4)

SMALL (5‐19)

MEDIUM (20‐199)

Quite/Very Confident

Mar 10 Nov 09 Jul 09 15% 13% 13% 46% 47% 38% 22% 21% 26% 14% 14% 18% 3% 4% 4% 1% 1% 1%

Mar 10 Nov 09

61% 60%

59% 58%

59% 60%

63% 60% 68% 78%




Figure 6.2: Confidence in how their business prospects will be in 12 months’ time: by State (% of n = 1,000)

Figure 6.3 Confidence in how their business prospects will be in 12 months’ time: by Industry (% of n = 1,000)

46%

44%

47%

44%

43%

50%

15%

15%

15%

13%

19%

14%

AUS

NSW

VIC

QLD

SA

WA


42%

46%

53%

47%

42%

11%

14%

19%

17%

12%

Agriculture, Manufacturing & Wholesale

Construction, Trades & Transport

Finance & Insurance

Professional & Business Services



Total Confidence

Mar 10 Nov 09 July 09

61% 60% 51%

59% 58% 46%

62% 63% 52%

57% 59% 52%

62% 59% 54% 64% 60% 59%

Total Confidence

Mar 10 Nov 09 July 09

53% 56% 46%

60% 49% 40%

72% 73% 62%

64% 72% 61% 54% 50% 48%




Overall ease or difficulty of running their business

More than half of the business owners surveyed are finding it quite or very easy to run their business, while one eighth of them find it quite or very difficult to run their business.

After reviewing 18 specific aspects of their business that they find either difficult or easy, 52% describe running their business as quite (38%) or very (16%) easy. One third (32%) of business owners say that it is neither difficult nor easy to run their business and only 13% say that running their business as quite (11%) or very (2%) difficult. (See Figure 7) Small business owners are not finding their businesses as easy to run as others are Only 37% of small business owners find their business easy to run at the moment, compared with 16% who find it difficult. (See Figure 7.1) Business owners in Western Australia and Victoria find it slightly easier to run their businesses than business owners in other States do In terms of perceptions about ‘ease’ of running their business, 59% of business owners in Western Australia and 58% of business owners in Victoria say that it is easy, while 51% of business owners in South Australia (despite their confidence in their future prospects – see earlier) find it easy and 17% of business owners in South Australia find it difficult. (See Figure 7.2) Business owners in Finance & Insurance are finding it easiest of all and least difficult of all to run their businesses 64% of business owners in the Finance & Insurance industry report that it’s easy to run their business, while only 9% of them find it difficult to do so. Business owners in most other industries are in line with the Australian averages for ease and difficulty in running their businesses. (See Figure 7.3)

Base: Business owners and directors (n=1,000) Question: And bearing in mind all of these different aspects of the business finances, accounting & bookkeeping, please indicate how difficult or easy you are finding it to run this business?

Figure 7 How difficult or easy business owners are finding it to run their business: By total sample (% of n=1,000)

16%

38%

32%

11%

2%

Very Easy

Quite Easy

Neither Easy or Difficult

Quite Difficult

Very Difficult




Figure 7.1 How easy or difficult business owners are finding it to run their business by business size/number of employees: By total sample (% of n=1,000)

Figure 7.2 How difficult or easy business owners are finding it to run their business by business by location. By total sample of (% of n=1,000)

54%

37%

58%

56%

54%

13%

16%

13%

12%

13%

MEDIUM (20‐199)

SMALL (5‐19)

MICRO (1‐4)

SOLE (0)

ALL (0‐199)

Easy Difficult

59%

51%

55%

58%

52%

54%

12%

17%

12%

13%

12%

13%

WESTERN AUSTRALIA

SOUTH AUSTRALIA

QUEENSLAND

VICTORIA

NEW SOUTH WALES

AUSTRALIA TOTAL

Easy Difficult




Figure 7.3 How difficult or easy business owners are finding it to run their business by industry. By total sample of (% of n=1,000)

56%

58%

52%

59%

64%

54%

52%

14%

13%

10%

15%

9%

12%

16%

Agriculture, Forestry & Fishing

Manufacturing & Wholesale

Construction & Trades

Transport

Finance & Insurance



Easy Difficult




The business tasks which Australian business owners find most difficult

‘ ‘Knowing which Government legislation and compliance changes are relevant to my business’ is seen as the most difficult challenge from 18 business tasks. When assessing a list of 18 specified business tasks, business owners surveyed identified 6 areas which currently present them with the most difficulty. These are: 1. Knowing which Government legislation and compliance changes are relevant to your business 2. Tracking and chasing up late payments 3. Knowing what changes to make to achieve your business goals 4. Managing the cash flow in and out of your business 5. Getting the right information to make informed business decisions 6. Preparing your quarterly BAS statement 30% of business owners surveyed find ‘knowing which Government legislation and compliance changes are relevant to my business’ quite difficult, and 9% find it very difficult, making a total of 39% of business owners who find this task difficult. Yet 27% find this task quite easy (20%) or very easy (7%). (See Figure 8) Businesses encountering legislative and compliance difficulties are most likely to be:

Construction & Trades (45%),

Retail and Hospitality (45%)

Micro (44%) Businesses reporting the legislative and compliance matters quite or very easy are:

Finance & Insurance (44%)

Medium (34%) (Only 15% of Agriculture business owners find this business task easy) ‘Tracking and chasing up late payments’ is a difficult task for 25% of the business owners surveyed. Chasing payments is particularly difficult for business owners in South Australia (30%) and is least difficult for business owners in Finance & Insurance (13%) and business owners in Western Australia (18%). ‘Knowing what changes to make to achieve business goals’ is proving slightly more difficult for business owners in Victoria (28%) and slightly less difficult for business owners in Queensland (19%). It is proving to be more difficult for businesses with $200K‐$999K pa revenue (33%), and for businesses with a revenue of $5m+ pa (33%). It is also more difficult for owners of start‐up businesses less than 2 years old (32%) and establishing businesses of 2 to 5 years of age (31%) than it is to maturing businesses of 5 to 10 years of age (22%) or established businesses aged over 10 years (18%). ‘Managing the cash flow and and out of the business’ is the fourth most difficult of these business tasks. It is very difficult for 4% and quite difficult for 18% of the business owners surveyed. Medium business owners (28%) more often report difficulty with managing cash flow than business owners in other industries do.




‘Getting the right information to make informed business decisions’ is the next most difficult business task overall for 22% of the business owners surveyed, and particularly for establishing businesses 2‐5 years old (30%), property professionals (29%) and businesses with $200K‐$999K pa revenue (28%) ‘Preparing your quarterly BAS statement’ is the sixth most difficult of all the business tasks presented. The lower their annual revenue and the younger their business, the greater is the difficulty encountered by business owners with preparing their quarterly BAS payment.

Base: Business owners and directors (n = 1,000) Q. Please indicate how difficult or easy you personally find the following tasks in your business. (Please select one answer only for each statement)




Figure 8: Difficulties had with certain nominated business tasks (% of n = 1,000)

Mar 10

39%

25%

24%

22%

22%

20%

18%

17%

17%

16%

16%

15%

14%

14%

14%

13%

30%

20%

21%

18%

20%

16%

15%

14%

14%

13%

13%

12%

12%

12%

11%

11%

9%

5%

3%

4%

2%

4%

3%

3%

3%

3%

3%

3%

2%

2%

2%

2%

Knowing which Government legislative & compliance changes are relevant to your

business

Tracking & chasing up late payments

Knowing what changes to make to achieve your business goals

Managing the cash flow in & out of the business

Getting the right information to make informed business decisions

Preparing your quarterly BAS statement

Implementing the latest PAYG changes

Having access to your business accounts anywhere, anytime

Implementing the latest payroll tax changes

Being able to instantly view income, expenditure, profit & loss

Keeping historical records for the ATO

Keeping your customer information up to date and organised

Manually entering bills and receipts

Using accounting software in general

Ensuring your Bookkeeper/Accountant has up to date copy of your records

Knowing your levels of inventory anywhere, anytime

Quite difficult Very difficult




The main pressures on business owners in Australia over the next 12 months Fuel prices, cash flow, and price margins and profitability, continue to put the most pressure on business owners in the coming year, just as they did in July 2009. The six main pressures on businesses in Australia in the next 12 months remain the same as measured in July 2009 – only their order has slightly changed (The July 2009 position is in brackets):

1. Fuel Prices: 28% will feel quite a lot or extreme pressure (#1) 2. Cash Flow: 26% will feel quite a lot or extreme pressure (#3) 3. Price Margins & Profitability: 25% will feel quite a lot or extreme pressure (#2) 4. Interest Rates: 24% will feel quite a lot or extreme pressure (#5) 5. Competitive Activity: 22% will feel quite a lot or extreme pressure (#4) 6. Timing of Customer Payments: 21% will feel quite a lot or extreme pressure (#6)

Fuel prices to pressure business owners most, and especially those in Transport and Agriculture Fuel prices are expected to put the most pressure on 28% of business owners across Australia in the next 12 months, compared with 30% in July 2009. (See Figure 9) Business owners in Transport (60%), in Agriculture (45%), in Construction & Trades (36%), in South Australia (33%) and in medium businesses (32%) will feel this pressure the most. Tighter or poor cash flow expected in medium sized and Agriculture and higher revenue businesses Cash flow is likely to be more of a business problem for business owners in medium sized business (40%), in Agriculture (39%), and with $5m+ annual revenues (38%). The same business owners expecting the most cash flow problems also anticipate a tighter squeeze on profits in the next 12 months Price margins and profitability are likely to put the most pressure (43% quite a lot of pressure or extreme pressure) on business owners in Agriculture, and on business owners with annual revenues of $5m+ (37% total pressure), and business owners in medium businesses (33% total pressure). Competitive pressure will be felt most by business owners in Manufacturing & Wholesale 36% of business owners in Manufacturing & Wholesale industries say that competitive activity will be a main pressure for them in the next 12 months, as do 36% of owners of medium‐sized businesses. Base: Business owners and directors (n = 1,000) Q. Whatever level of confidence you have about your business prospects now and in the next 12 months, please rate each of the following on how much pressure they will put on your business in the next 12 months? (Please select one answer only for each statement)




Figure 9: Pressures on their businesses in the next 12 months (% of n = 1,000)

20%

19%

18%

17%

17%

16%

14%

14%

13%

11%

11%

9%

9%

9%

5%

6%

8%

6%

8%

5%

7%

5%

4%

5%

3%

3%

4%

2%

2%

3%

2%

2%

Fuel Prices

Price Margins & Profitability

Cash Flow

Competitive Activity

Interest Rates

Timing of Customer Payments

Business Sales/Projects: by Volume

Business Finance,Funding, Overdraft

Business Sales/Projects: by Value

Industry/Category Performance

Other (Than Staff) Business Costs

Marketing & Customer Relationships

Exchange Rates

Number & Cost of Staff

Staff Skills & Training

Current Business Systems (IT, Accounting, Website)

Total Pressure

Mar 10 Jul 09

28% 30%

25% 25%

26% 24%

22% 21%

24% 20%

21% 19% 22% 18%

19% 17%

16% 16%

14% 16%

15% 14%

11% 13%

11% 12%

12% 8%

7% 7%

8% 6%




Sources of information or advice on tax and compliance issues Business owners are most likely to source tax and compliance information or advice from their Accountant ATO contacted for tax and compliance information far less than Accountants are Two thirds (69%) of business owners surveyed ask their Accountant for information and advice on tax or compliance issues (compared with 76% in the July 2009 survey), while the Australian Tax Office (ATO) is a source of this kind of information for only 36% of business owners surveyed (compared with 34% in July 2009). (See Figure 10) Micro business owners most likely to use Accountant for tax and compliance advice 77% of micro business owners go to their Accountant for tax and compliance information or advice, compared with 66% of sole traders, 68% of medium business owners and 72% of small business owners who do so. (See Figure 10.1) Business owners in New South Wales slightly less likley to use Accountants for tax and compliance information or advice By State and Region, Accountants are less likely to be a source of tax and compliance information or advice for business owners in New South Wales (66%) and most likely to be a source for this kind of information for business owners in Queensland (73%). (See Figure 10.2) Business owners in Transport and Agriculture most Accountant‐dependent for tax issues Business owners in Transport (82%) and Agriculture (81%) are more dependent on Accountants for tax and complinace infoirmation and advice than are owners of other types of businesses. Base: Business owners & directors (n = 1,000) Q. Who do you ask for information or advice on tax or compliance issues?

Figure 10: Sources of Information or Advice on Tax and Compliance Issues (% of n = 1,000)

69%

36%

9%

9%

9%

8%

6%

21%

4%

Accountant

ATO

Online (Business Info)

Online (Compliance/Tax)

Business Associates

www.business.gov.au

Government Agency

Other Sources (each <6%)

Don't Ask Anyone for This

Mar 10 Jul 09

69% 76%

36% 34%

9% 9%

9% 8%

9% 6%

8% ‐

6% 3%

21% 12%

4% 4%




Figure 10.1: Sources of Information or Advice on Tax and Compliance Issues: by Number of Employees (% of n = 1,000)

Figure 10.2: Sources of Information or Advice on Tax and Compliance Issues: by State (% of n = 1,000)

46%

32%

32%

37%

36%

68%

72%

77%

66%

69%

Medium (20‐199)

Small (5‐19)

Micro (1‐4)

Sole (0)

All (0‐199)

Accountant

ATO

37%

31%

36%

35%

34%

36%

71%

72%

73%

69%

66%

69%

WA

SA

QLD

VIC

NSW

AUS

Accountant

ATO




Sources of information about improving business performance A third of the business owners surveyed (compared with almost half of the business owners surveyed in July 2009) don’t ask anyone for any information or source information that will help them to improve their business performance Accountant is primary source for those who want help to improve business Amongst the 65% of business owners surveyed (+10% on July 2009) who will seek information (some from multiple sources) to help them improve their business, 30% are likely to ask their Accountant for this information, and 17% are likely to seek this information from a Business Associate. (See Figure 11)

Sole traders now much more likely to seek business improvement information In July 2009, only 49% of sole traders surveyed indicated that they will seek out business improvement information, which compares with 63% who say that they will do so in this survey. The most likely to seek business improvement information or advice remain medium business owners (80%), followed by small business owners (73%). (See Figure 11.1) Business owners in Australia are poor users of Internet for business improvement information Very few (6%) of the business owners surveyed use online resources to find information that might help them improve their business. Base: Business owners and directors (n = 1,000) Q. And who do you ask for information about improving business performance?

Figure 11 Sources of Information on or help with improving business performance: (% of n = 1,000)

35%

30%

17%

10%

6%

5%

4%

Don't Ask Anyone/Source

Accountant

Business Associates

Business Mentor/Adviser

Online (Business Info)

ATO

Bank

Mar 10 Jul 09

35% 45%

30% 31%

17% 16%

10% N/M

6% 10%

5% 5%

4% 4%




Figure 11.1: Sources of Information on or help with improving business performance: by Number of Employees (% of n = 1,000)

7%

5%

5%

5%

5%

43%

36%

32%

27%

30%

20%

27%

39%

37%

35%

Medium (20‐199)

Small (5‐19)

Micro (1‐4)

Sole (0)

All (0‐199)

Don't Ask Anyone/Source

Accountant

ATO




Improvements to help make it easier to do business in the next 12 months Business owners identify improved supplier relationships and pricing as most popular element that would make it easier to do business in the coming year. Suppliers key to helping make it easier to do business over the next 12 months When asked to choose between seven possible improvements that would make it easier for them to do business over the next 12 months, more than a quarter of the business owners surveyed (28%) chose Improved Supplier Relationships & Pricing. (See Figure 12) This business improvement was highlighted by business owners in medium businesses (50%), Manufacturing & Wholesale (40%), Retail & Hospitality (37%) and by business owners with revenue of $1‐5m pa (41%). Improved Staff Skills and Performance a more important business facilitator than it was last year From equal third improvement to help them work smarter in July 2009 (the question was phrased that way in July 2009 – see below), this is now the the improvement next most likely to make it easier to do business in 2010‐2011. (See Figure 12) Improved banking and business finance facilities somewhat more desirable than in 2009 In July 2009, 19% of the business owners surveyed said improved banking and business finance facilities would help them do business smarter. Although this improvement ranked last out of 6 in 2009, it ranks third out of 7 in this survey. While 21% of all business owners in this survey want Improved Website & eCommerce Facilities to help improve their business in the coming year. (See Figure 12) Base: Business owners and directors (n = 1,000) Q. Based on the way you do business today, which of any of the following would make it easier for you to do business in the next 12 months? (In July 2009, the question tail was ‘...would help you work smarter in the next 12 months?’)

Figure 12: Improvements to make it easier to do business in the next 12 months (% of n = 1,000)

28%

21%

18%

24%

19%

18%

23%

Improved Supplier Relationships & Pricing

Improved Website & eCommerce Facilities

Improved Business Information Facilities

Improved Staff Skills & Performance

Access to affordable Business Mentor/Adviser

Improved Bookkeeping & Accounting Systems

Improved Banking & Business Finance Facilities

Mar 10 Jul 09

28% 33%

21% 23%

18% 22%

24% 22%

20% N/M

18% 20%

23% 19%




Changes in business activities in the last six months

One fifth of business owners surveyed have increased the variety of their products and services in the last six months.

Variety of products and services offered, and activity in new markets have increased more than other business activities, just as they did in November 2009 21% of all business owners surveyed have increased the variety of the products and services they offer in the last six months, and only 9% have decreased or lessened that activity. While 21% have increased their activity in new markets, 15% have decreased that activity. All other activities have decreased more than they have increased. Marketing and advertising spending (20% decrease) and research and development spending (19%) have decreased the most. (See Figure 13)

Base: Business owners and directors (n = 1,000) Q With regards to your company/business, how do you think each of the following have changed in the last 6 months?

Figure 13: Changes in business activities in last 6 months: Total Sample (% of n=1,000)

21%

21%

15%

14%

10%

8%

11%

9%

15%

17%

20%

14%

19%

13%

Variety of products and services offered

Activity in new markets

Sales or promotions

Marketing and advertising spending

Staff training

Research and development spending

Staff numbers

Increases Decreases

Net Increase/Decrease

Mar 10 Nov 09

‐2% ‐5%

‐11% ‐7%

‐4% ‐3%

‐6% ‐6%

‐2% ‐3%

+6% +6%

+12% +17% Note: + is a net increase, and ‐ is a net decrease: e.g. +21% ‐9% = +12% net +14% ‐20% = ‐6% net




How business owners track cash flow in their business A third of business owners only refer to their bank statement to track cash flow Many business owners look at bank statements not business books to manage cash flow Some business owners are not tracking their cash flow effectively. More business owners (32%) say that they only refer to their bank statement rather than use their computerised accounting system (25%) to track their cash flow (as distinct from ‘doing their books’). (See Figure 14) Sole traders make up 51% of the business owners in this survey, and these business owners are the most likely (38%) to refer to their bank statemnet as the main means of monitoring their cash flow. Small business owners again far more likely to use computerised accounting to track cash flow Small business owners are by far the most likely (39%) to use a computerised accounting system to track their business cash flow, as are rural business owners (32%), and, by industry, Finance & Insurance business owners (38%) and owners of Professional & Business Services businesses (32%). Owners of start‐up businesses (<2 years) are least likely (17%) to use computerised accounting systems to track cash flow, whereas owners of establishing businesses (2‐5 years) are the most likely (29%) to do so. Few business owners confess poor cash flow management, and even fewer ask their accountant to monitor it for them 12% (16% in July 2009) of the business owners surveyed admit that they don’t track cash flow as well as they should, and very few (7% in July 2009 and again in this survey) say that their accountant monitors the cash flow of their business for them. Base: Business owners & directors (n = 1,000) Q. How do you track cash flow in your business? (Please select your MAIN METHOD from the list below)

Figure 14: Business owners’ main method of tracking their cash flow (% of n = 1,000)

32%

25%

14%

12%

7%

4%

5%

Refer to bank statement

Use computerised accounting system

Don't track cash flow so well

Rely on monthly P & L statement

Accountant monitors for me

Contract bookkeeper monitors

Other single mentions

Mar 10 Jul 09

32% 32%

25% 26%

14% 16%

12% 13%

7% 7%

4% 2%

5% 4%




Government

Present satisfaction with Federal Government’s support of business Dissatisfaction with the Federal Government’s support of and contribution to businesses has returned to mid‐2009 levels. The majority of business owners were dissatisfied in 2008, and a minority were dissatisfied in 2009, but dissatisfaction has increased by 7% between November 2009 and March 2010 Dissatisfaction with the Federal Government’s support for Australian businesses decreased steadily over 2009, from 56% of business owners in September 2008 to 39% in July 2009, to 31% in November 2009. In March 2010 it has risen again, to 38%. Importantly, while 38% are dissatisfied with the Federal Government’s support for business at this time, only 21% are satisfied with the FedeǊŀl Government’s support for business at this time. (See Figure 15) Owners of medium businesses, and owners aged under 40 remain more satisfied than dissatisfied 40% of owners of medium businesses are satisfied ( but 58% in November 2009), with only 16% dissatisfied (11% in November 2009). (See Figure 7.1) In contrast, only 18% of micro business owners are satisfied, while a significant 44% are dissatisfied. 28% of business owners aged 18‐39 years are satisfied, while 28% are dissatisfied. This compares with business owners aged 40 or more, 44% of whom are dissatisfied with the Federal Government’s support, and only 17% of whom are satisfied with that support. (See Figure 15.1) In all States (South Australia and Victoria were the exceptions in November 2009), business owners are more dissatisfied with the Federal Government’s support than they are satisfied, and they are most dissatisfied in South Australia and Western Australia In South Australia, 47% are dissatisfied with the Federal Government’s support (compared with only 27% in November 2009). 44% of business owners in Western Australia are dissatisfied with the level of support for businesses like theirs. Victoria has a better satisfaction:dissatisfaction ratio, or ‘smaller gap’ (24%:36%) than the other States ( (See Figure 7.2). Rural business owners continue to be the least satisfied (16%) and the most dissatisfied (47%). (See Figure 15.2) Owners of businesses in the Agriculture, Forestry and Fisheries Industries are easily the most dissatisfied with the support for business given by the Federal Government No less than 54% of the business owners in the Retail and Hospitality industries are dissatisfied with the Federal Government’s support, and only 12% of these business owners are satisfied with that support. This compares with owners of Manufacturing and Wholesale businesses who are 40% dissatisfied and 18% satisfied, and contrasts sharply with owners of Professional, Financial and Business Sevices companies, who collectively are 35% dissatisfied and 24% satisfied with the Federal Government’s level of support for their kinds of businesses. (The responses of Agriculture, Wholesale and Manufacturing businesses have been combined on figure 7.3 to compare them with the findings of earleir surveys.) (See Figure 15.3) Base: Business owners and directors (n = 1,000) Q. How satisfied are you with the Federal Government’s level of support for businesses like yours at this time?




Figure 15: Dissatisfaction and Satisfaction with Federal Government’s support of business in Australia (% of n=1,000)

Figure 15.1: Satisfaction and dissatisfaction with Federal Government’s support of business in Australia: by Business Size/Number of Employees (% of n=1,000)

21%

39%

38%

2%

Quite/Very Satisfied

Neither Satisfied Nor Dissatisfied

Quite/Very Dissatisfied

Don't know

40%

20%

18%

21%

21%

16%

37%

44%

38%

38%

MEDIUM (20‐199)

SMALL (5‐19)

MICRO (1‐4)

SOLE (0)

ALL (0‐199)

Satisfied Dissatisfied

Mar 10 Nov 09 Jul 09 Satisfied 21% 29% 21% Neither 39% 38% 37% Dissatisfied 38% 31% 39% Don’t Know 2% 2% 3%

Dissatisfied Mar 10 Nov 09 Jul 09

38% 31% 39%

38% 27% 39%

44% 41% 44%

37% 45% 38%

16% 11% 22%




Figure 15.2: Satisfaction and dissatisfaction with Federal Government’s support of business: by State (% of n = 1,000)

Figure 15.3: Satisfaction and dissatisfaction with the Federal Government’s support of business: by Industry (% of n = 1,000)

21%

21%

24%

17%

21%

15%

38%

36%

36%

39%

47%

44%

AUS

NSW

VIC

QLD

SA

WA


16%

20%

24%

23%

23%

42%

37%

35%

35%

38%

Agriculture, Manufacturing and Wholesale






Mar 10 Nov09 Jul 09 Mar 09 Dec 08

38% 31% 39% 42% 47%

36% 32% 40% 47% 47%

36% 29% 36% 38% 49%

39% 39% 43% 44% 44%

47% 27% 40% 49% 52%

44% 29% 42% 33% 45%

Mar 10 Nov 09 Jul 09 Mar 09

42% 27% 44% 51%

37% 31% 39% 37%

35% 29% 38% 42%

35% 32% 39% 42%

38% 45% 45% 43%

Dissatisfied

Dissatisfied




Present satisfaction with State Government’s support of business Business owners’ dissatisfaction with their State Government’s support of and contribution to business has returned to July 2009 levels. Business owner dissatisfaction with State Government still greater than dissatisfaction with Federal Government’s efforts 46% are dissatisfied with their State Government’s support for businesses like theirs, compared with 38% who are dissatisfied with the Federal Government’s performance in this respect. Although 21% of business owners are now satisfied with the Federal Government’s support of business, only 17% of business owners are now satisfied with their State Government’s contribution to and support of business. (See Figures 15 and 16) Owners of medium businesses remain the only business owners presently more satisfied than dissatisfied Currently only 23% of owners of medium businesses are dissatisfied with their State Government’s contribution to business, whereas 40% are satisfied with their State Government’s support (a significant increase on the 33% satisfied in July 2009). By comparison, 45% of sole traders are dissatisfied and only 16% of sole traders are satisfied; 50% of micro business owners are dissatisfied and only 15% are satisfied; and 47% of small business owners are dissatisfied and only 17% are satisfied with their State Government’s support of business in Australia. (See Figure 16.1) Business owners in South Australia remain the most dissatisfied with their State Government Business owners in South Australia (58%) are the most dissatisfied and business owners New South Wales (49%) are now second most dissatisfied with their State Government’s support for business. (See Figure 16.2)

Dissatisfaction levels with State Government support are very similar across industry segments The most dissatisfied business owners are in Agriculture, Manufacturing & Wholesale (49%) and the least dissatisfied business owners are in Professional & Business Services (42%). (See Figure 16.3) Base: Business owners and directors (n = 1,000) Q. How satisfied are you with your State Government’s level of support for businesses like yours at this time?




Figure 16: Satisfaction with their State Government’s support for business (% of n = 1,000)

Figure16.1: Satisfaction and dissatisfaction with their State Government’s support of business in Australia: by Business Size/Number of Employees (% of n=1,000)

17%

34%

46%

3%

Quite/Very Satisfied

Neither Satisfied Nor Dissatisfied

Quite/Very Dissatisfied

Don't know

40%

17%

15%

16%

17%

23%

47%

50%

45%

46%

MEDIUM (20‐199)

SMALL (5‐19)

MICRO (1‐4)

SOLE (0)

ALL (0‐199)


Mar 10 Nov 09 Jul 09 Satisfied 17% 19% 14% Neither 34% 35% 36% Dissatisfied 46% 43% 46% Don’t Know 3% 3% 4%

Dissatisfied Mar 10 Nov 09 Jul 09 46% 43% 46% 45% 38% 45%

50% 52% 51% 47% 56% 49% 23% 25% 29%




Figure 16.2 Satisfaction and dissatisfaction with State Government’s support for business: by State (% of n = 1,000)

Figure 16.3 Satisfaction and dissatisfaction with the State Government’s support for business: by Industry (% of n = 1,000)

19%

16%

20%

12%

13%

16%

43%

49%

40%

47%

58%

44%

AUS

NSW

VIC

QLD

SA

WA


17%

13%

23%

19%

20%

49%

45%

43%

42%

45%

Agriculture, Manufacturing &Wholesale

Construction, Trades &Transport

Finance & Insurance





43% 43% 46%

49% 50% 52%

40% 33% 40%

47% 47% 47%

58% 53% 48% 44% 34% 45%

Mar 10 Nov 09 Jul 09 49% 42% 56%

45% 42% 46%

43% 41% 47%

42% 45% 44%

45% 53% 51%

Dissatisfied

Dissatisfied




Appendix 1 – Perceptions of business prospects and business revenue increases over the next 12 months

Figure 17: Businesses’ confidence in business prospects and expectations of business revenue increases over the next 12 months (Total Sample % n=1,000)

58

53

44 45

37

4648

69 68

6159

47

60 61

0

10

20

30

40

50

60

70

80

June 2008 (n=1693)

September 2008

(n=1462)

December 2008

(n=1385)

March 2009 (n=1503)

July 2009 (n=1000)

November 2009

(n=1165)

March 2010 (n=1000)

Business revenue will increase next 12 months

Confidence in business prospects next 12 months




Appendix 2 – Perceptions of Federal Government Performance

Figure 18: Businesses’ perceptions of the Federal Government’s performance in contributing to the development of and supporting businesses in Australia

5656

47

42

39

31

38

0

10

20

30

40

50

60

June 2008 (n=1693)

September 2008

(n=1462)

December 2008

(n=1385)

March 2009 (n=1503)

July 2009 (n=1000)

November 2009

(n=1165

March 2010 (n=1000)

Dissatisfied with Federal Government's contribution to & support of business




Appendix 3 – Perceptions of State Government performance

Figure 19: Businesses’ perceptions of their State Government’s performance in contributing to the development of and supporting businesses in Australia

63 61 59

54

4643

46

0

10

20

30

40

50

60

70

June 2008 (n=1693)

September 2008

(n=1462)

December 2008

(n=1385)

March 2009 (n=1503)

July 2009 (n=1000)

November 2009

(n=1165)

March 2010 (n=1000)

Dissatisfied with their State Government's contribution to & support of business

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