The latest MYOB small business survey has shown that small businesses are increasingly becoming frustrated with the state of the economy, and quickly losing faith in the Rudd Government, with close to two-thirds expecting the economy to slide into recession in the next 12 months.
MYOB chief executive Tim Reed points towards a decline in small business consumer confidence, as the economy slides further and further into a recession.
“Australia’s small business owners, who are usually highly optimistic, are losing confidence in the economy, and this has impacted their confidence in the Federal Government, with 45 percent believing that the Government has not adequately considered the impact of the financial crisis on small business.”
The survey found that small businesses are feeling the pressure of the crisis, with 42 percent cutting back on businesses expenses such as advertising, marketing, staff, stock levels and travel.
Reed believes their lack of confidence in the Government is directly correlated to their fears about the economy.
“It would seem that this loss of confidence in the Federal Government only applies to the issue of the global financial crisis.”
Despite these fears, an overwhelming 78 percent of small business owners are yet to speak with an accountant about ways to improve their finances and survive the crisis.
Reed is urging small businesses to think about the “big picture” and look into what they “can control” in order to stay on top of their cash flow.