SMBs Pessimistic About The Future

While recent budget promises made by the Federal Government have been somewhat favourable to SMBs, business owners still don’t have a positive outlook on what lies ahead in the future. That’s according to a survey by accounting software vendor MYOB.

Man in the rain image from Shutterstock

MYOB surveyed 1000 SMBs to gauge their feelings about the Australian economy and business expectations. Nearly half of them (42 per cent) thought the economy will decline over the next 12 months. Only around a quarter (24 per cent) were optimistic.

Many SMBs aren’t expecting more revenue to come through. Only 31 per cent said they’re predicting their revenue to increase while 41 per cent thinks it will remain flat for them over the next 12 months. Around 34 per cent had more work or sales in the pipeline, down from last year, and more SMBs (24 per cent) said they have had less business.

The upcoming Federal Election may have brought about additional uncertainly for SMBs, according to MYOB CEO Tim Reed.

Business pressures faced by SMBs remained consistent including cash flow, competitive activity, fuel prices, attracting new customers, profitability and price margins. SMBs are also concerned about the possibility of an interest rate rise.


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