{loadpositon peter}According to the research report by the 2012 March MYOB Business Monitor, more than one quarter (26%) of Australian SMBs surveyed do not expect the domestic economy to improve for at least two years, the highest percentage recorded by the MYOB since the study commenced in 2004.
MYOB CEO Tim Reed said the results of the research painted a 'stark picture of the financial and emotional challenge facing small to medium business owners, their families and their staff over the next year,' and he said they would need 'significant support from their networks and the government in order to swim strongly through these challenging times.'
'Given the lack of confidence in Australia's short-term economic future uncovered by our latest MYOB Business Monitor, it's unsurprising that we also found the majority of SMEs expected to make no change over the next year to their levels of staffing, salaries, investment in R&D, sales promotions, overseas exports and more.
'Having said that, more than one third intended to increase their focus on customer retention strategies during that time and close to one third intended to increase their attention on customer acquisition strategies.'
Only 19 percent of the 1,043 small to medium business owners and managers (SMEs) surveyed nationally expected the economy to improve within the next 12 months, with this figure representing almost half the 35 percent noted in the March 2011 report and a large drop from 54 percent in March 2010.
While 20% said their revenue rose in the past year, almost twice that number (38%) said revenue fell, a similar proportion as those with steady revenue (39%). Generation Y, according to the MYOB Monitor, was the generation most likely to experience a positive result, with 29 percent seeing revenue rise, while business owners over 60 year of age were most likely to experience a fall, at 41 percent.
MYOB reports that industries hit hardest in reporting revenue losses were construction and trades (46%) and manufacturing and wholesale (45%). However, manufacturing and wholesale was also the industry most likely to see revenues rise (25%), closely followed by transport, postal and warehousing (24%).
According to Reed, one positive finding was the 30 percent of SMBs anticipating their business revenue to rise in the next 12 months and 39 percent expecting theirs should hold steady. However, Reed points out that still left almost one quarter (24%) predicting a fall in revenue. Generation X led the generations, according to MYOB, when it came to looking ahead to positive revenue results at 36 percent, and in terms of industry, finance and insurance clearly led the way, with 50 percent expecting their revenue to rise.
MYOB also found that there was "near-record dissatisfaction with government support", and Reed says that respondents' dissatisfaction with Federal Government support for their businesses has "risen significantly over the past two years," from 38 percednt in March 2010 to 52 percent in March 2012. However, MYOB does says this was slightly lower than the highest level recorded so far by the study - 56 percent in October last year.
