The survey found that Australia’s small business owners are increasingly concerned about the current global economic situation, with around half (47 per cent) more concerned than they were a year ago.
Some 26 per cent of decision makers had difficulties meeting liabilities to suppliers on time, and 24 per cent had difficulties making their tax payments. The majority of SMEs were also worried about interest rates, with 54 per cent believing that an interest rate hike of 25 basis points will impact or seriously impact their business.
Conducted in February 2012 and the second of its kind, the Bibby Barometer Small Business Survey is a national study run twice yearly, surveying primary decision makers in over 200 non-retail SMEs.
From the overall Bibby Barometer Small Business Survey, a Bibby Barometer Index was constructed which measures small business expectations for a healthy business environment – based on intention to invest in the business, expectations of sales growth, ease of managing cash flow, business confidence, and levels of business stress.
Since the previous reading in July 2011, this Index shows that small business expectations have decreased overall by 6 per cent.
Greg Charlwood, managing director of Bibby Financial Services says, “Our second Bibby Barometer Index has revealed that expectations regarding sales growth have deteriorated and cash flow is more difficult.
“It is clear that current global economic conditions are not only impacting large corporations but also filtering down to Australia’s SME sector.”
According to the Bibby Barometer Small Business Survey, managing cash flow (39 per cent) ranks at the same level as three other major business headaches: staffing issues (40 per cent), a lack of time to enjoy family life (40 per cent), and Government red tape and tax administration (39 per cent).
Federal Cabinet is currently considering a package of reforms for small businesses, including tax relief to commence in July 2012, in addition to other measures to reduce red tape and provide exemptions from unfair dismissal laws.
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