Two separate surveys of small business people have painted very different pictures of small business sentiment.
The NAB SME Quarterly Survey (June 2010), released in August, suggests “Confidence levels of SMEs for the September quarter are less optimistic, due to concerns around demand levels, cash flow and borrowing costs,” according to the National Australia Bank’s, Executive General Manager, NAB Business, Geoff Greer.
The survey says financial turmoil in Europe is continuing to spook small businesses, while low domestic demand, poor cash flow and the cost of credit are also contributing to lower confidence.
“Businesses are being impacted as consumers remain cautious. The government stimulus continues to fade and there is a lull before private sector investment begins to ramp up. These trends were more evident in retail, transport as well as property and construction as we see projects mature at a time of weak building approvals,” Greer said.
The second survey of small business sentiment, the August 2010 Sensis Business Index, found rising confidence and asserted that those surveyed are “confident about their business prospects are because they have an established business and good customer relations.”
The August 21 election worried many respondents, but overall “We have seen a marginal improvement in trading conditions this quarter with sales, employment and capital expenditure rising, although they remain in negative territory.”
The August 21 election worried many respondents, but overall “We have seen a marginal improvement in trading conditions this quarter with sales, employment and capital expenditure rising, although they remain in negative territory.”
Small business predictions of profitability, however, declined during the quarter the survey covered.
Source: My Business e-news, August 26, 2010
