Survey reveals confidence at GFC lows
Recent declines in financial planner sentiment may be a reflection of the broader state of Australian small business, if a new CPA Australia survey is an indicator.
The CPA Australia 2011 Australia Asia-Pacific Small Business Survey has found Australian small business confidence mirrors that displayed at the height of the global financial crisis and lags behind that of other regional players.
The survey, conducted in over 1500 small businesses in six Asia-Pacific economies, found Australian small business operators were the least likely to expect their business to grow in the next 12 months, with just 57 per cent indicating a positive growth outlook for the coming year.
CPA Australia noted that the 57 per cent figure was identical with that recorded at the height of the GFC.
It also found that 41 per cent of Australian businesses borrowed for business survival in the past 12 months, with 29 per cent borrowing to fund growth.
As well, the CPA Australia survey found that 18 per cent of Australian businesses had indicated no intention of undertaking key business management activities such as stock control, sale of assets, marketing or promotion in the coming year.
Commenting on the survey findings, CPA Australia chief executive Alex Malley said they painted a bleak picture of small business attitudes.
He said that while global economic volatility had played a part, the greater contributors had been increasing expenses, higher borrowing costs and tighter lending conditions.
AUTHOR
Mike Taylor
Recommended for you
Insignia Financial has issued a statement to the ASX regarding a potential bid from a third global private equity business to acquire the firm.
More than 30 advisers fell off the FAR during the Christmas and New Year period, according to Wealth Data, with half of these coming from licensee giant Entireti.
With next-generation heirs unlikely to retain their family’s financial advisers after receiving an inheritance, Capgemini has explored how firms can work with younger generations to maintain a relationship.
The use of technology and data analytics will be a way for advice firms to grow in 2025, according to Adviser Ratings, with those who are using it successfully reporting 10 per cent higher profit margins.
