Fewer Australian SMB owners are contemplating retirement because of continued economic uncertainty and unsatisfactory superannuation, according to a recent survey.
The thinkBIG benchmark survey, conducted by accounting firm RSM Bird Cameron found that one in five SME owners have delayed their exit date from their business because of economic uncertainty for the second year in a row. More owners are also expecting to continue working after they dispose of their business compared with three years ago.
Concerns about cashflow management and availability contribute to the continuing uncertainty of SMB owners, says director of Business Solutions, RSM Bird Cameron Terry Rodoni.
“ThinkBIG found that business owners faced tougher trading conditions over the last two years, with nearly a third recording no revenue growth or a decline in revenues, up from the 2009 result.” Mr Rodoni said.
“SME owners have told us they will increasingly improve efficiency through technology over the next 12 months, although many will continue to rely on price increases or overhead reduction to protect their margins,” Mr Rodoni added.
In addition, only one in 14 SMB owners are completely satisfied with their retirement provisions. Mr Rodoni said that this statistic was unsurprising given that only a third of owners expect to invest some proportion of their retirement funds into superannuation after leaving the business.
The survey did reveal some modest signs optimism, with fewer SMB owners expecting to reduce personal drawings or reduce staff over the next 12 months. However, nearly a third of owners are not sure whether their business will grow over the next two years or do not believe it will grow.
