While not declaring the GFC ‘over’, National Australia Bank’s SME Quarterly Survey to December 2009 shows business conditions for small to medium enterprise are at their highest since June 2008.
For the December quarter, SMEs with an annual turnover from $2 million to $3 million recorded the strongest improvement in conditions jumping 13 index points, from 4 to 17 index points, whilst SMEs with a turnover of $5 million – $10 million rose from 6 to 14 index points and SMEs with a turnover of $3m – $5m increased from 3 to 8 index points.
Geoff Greer, Executive General Manager, nabbusiness, said that these positive survey results are good news for Australian SMEs and the economy overall.
“Seventy percent of all Australian workers are employed in small and medium-sized businesses – that’s nearly 7 million Australians and their families who rely on this sector of our economy. So the more positive conditions we can see in the results of our latest SME Quarterly Survey is great news for the Australian economy,” said Mr Greer.
“The survey results suggest customer confidence and demand have recovered strongly, surging 44 index points from -23 index points to 21 from the June to December 2009 quarters, giving a real boost to the optimism of Australia’s small businesses.
“Most pleasingly, the 12-month profit outlook for small and medium-sized businesses is the most optimistic we have seen in Australia for more than two and a half years.
“What we are seeing here is that Australia’s small and medium-sized businesses are really starting to see the light at the end of the GFC tunnel,” he said.
The NAB SME Enterprise Survey interviewed almost 700 firms with an annual turnover of $2-10 million per annum. The average number of employees is 30 (16 employees for $2-3 million turnover; 25 employees for $3-5 million turnover and 41 employees for $5-10 million turnover).
