After a year of uncertainty waiting for the federal political situation to stabilise, Australian businesses are feeling positive about the future.
A new survey from The Executive Connection revealed that while over 60 per cent of business leaders believe the election had an impact on their company, 83 per cent believe their profitability will grow or remain steady over the next twelve months.
A third of businesses stated they will be actively looking to recruit more staff.
Nikki Potter, CEO of The Executive Connection, believes that the slow softening of the local economy has given businesses time to adjust to the new reality.
“While Australia avoided the brunt of the GFC, there are still ripples of uncertainty which continue to run through the economy. The gradual softening however gave businesses a chance to adapt their strategies to account for the slowdown and remain profitable in these different conditions,” Potter said.
Reduced demand and innovations from competitors were found to be the greatest business challenges for the year ahead.
Potter said that businesses the keys to success are learning from the mistakes and successes of the competition, and adapting to consumer sentiment.
“The businesses that usually thrive in disruptive times are those who can move quickly. This can give midmarket businesses an advantage, as it can be easier to turn the business on a new course,” Potter said.
The latest Regus Business Confidence Index found that SMBs will be prioritising cheaper IT service providers, higher ROI on advertising and marketing, and staff retention to increase efficiency over the next 12 months.
NSW businesses are the most confident looking ahead. Seventy per cent expect to increase sales in the next year, while South Australians were the least positive with just 31 per cent expecting growth.
Businesses in Western Australia aren’t far behind. Only 43 per cent are projecting a rise in revenue in the next year, hinting at tough conditions due to the slowdown of the mining boom.