Welcome to the end of the week, small business owners. If you’ve had a busy week and missed what’s been happening in the business world, we’ve wrapped up the most important headlines from the past five days.
This week, the RBA held interest rates steady at 3.5 percent, business sentiment and conditions slid further and the 2012 Ernst & Young Entrepreneur Of The Year Western region award winners were announced.
Business sentiment continues its downhill side: Survey
Confidence in the small business sector is continuing to wane, according to the latest NAB Quarterly Business Survey, as the global economic climate remains unstable and the prospect of new local taxes sit on the horizon.
Small business confidence dipped to -9 in the June quarter, down from -4 in the first quarter of 2012. By industry, Confidence fell heavily in business services, accommodation, cafes & restaurants and health, but improved marginally in the retail and transport sectors.
“Attempts by the RBA to restimulate the economy with 125bp worth of rate cuts since November appear yet to gain traction, and provided little relief to small business owners,” the survey said.
Sentiment fell in every state during the June quarter; with the most significant deterioration occurring in Victoria (down 11 to -13 points), followed by SA (down by eight points).
RBA holds interest rates, again
The Reserve Bank of Australia (RBA) has held the cash rate at 3.50 percent on Tuesday, as inflation and growth remain close to trend for the second month in a row.
According to RBA governor Glenn Stevens, previous decisions mean monetary policy is “easier” now than it was for most of 2011. Housing prices have firmed and business credit rates have recorded their strongest growth over the past six months for several years.
“At today’s meeting, the Board judged that, with inflation expected to be consistent with the target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the stance of monetary policy remained appropriate,” he said.
Small businesses dealing in local eCommerce, says report
When it comes to selling online, small businesses are far more inclined to target consumers in their local area rather than look abroad for new business, according to a new report.
The Sensis eBusiness report found online sales by small businesses were largely made to customers in the same town and the likelihood of a sale lessened as the distance between a business and potential customers increased.
About 66 percent of businesses selling online said the bulk of their online sales came from local customers, an increase of 6 percent from the previous year. The report also found that 87 percent of businesses with an online presence successfully sold goods and services to local customers.
International customers were identified by just 5 per cent of businesses as their main customer group, a 2 percent rise over the previous year, while 27 percent reported at least some sales to overseas customers, the same number as reported last year.
Confidence in Australian exporting rising
Exporters are growing in confidence despite the high Australian dollar, according to the latest DHL 2012 Export Barometer, with half of all exporters expecting an improvement in company profitability over the next 12 months.
With 57 percent of exporters expecting to increase their export orders in 2012, up from 48 percent last year, clearly Australian exporters are confident that business will pick up over the next year. After surveying 785 regular exporters, DHL’s figures have revealed that 50 percent of exporters expect company profitability to increase in the next 12 months.
According to the survey author, Tim Harcourt, the J.W Neville fellow at the School of Economics at UNSW, the survey was conducted among regular exporters who were continuing to export despite international market pressures and the continual rise of the Australian dollar. Harcourt also commented that for the first time exporters were asked about the introduction of the carbon tax and how that might affect their export business.
Successful entrepreneurs congratulated in the west
Perth played host to the 2012 Ernst & Young Entrepreneur Of The Year Western region awards on Thursday night, where top entrepreneurs gathered together for a number of key announcements.
The winners of the 2012 Ernst & Young Entrepreneur Of The Year award, by category, included Sasha de Bretton of Million Dollar Makeovers (Emerging), Dale Alcock of ABN Group (Industry), Daniel Tucker of Carey Mining Pty Ltd (Services) and Damione Wright ofPerformance On Hand (Technology).
Others to be recognised in the non-competitive regional award categories were Professor Peter Klinken from Western Australian Institute for Medical Research and Janet Holmes a Court AC from Janet Holmes a Court Collection.
Red tape strangling small business, says survey
Government compliance processes are continuing to have a negative impact on the SMB community, with more than 80 percent of respondents in a recent survey reporting they’re struggling with bureaucratic red tape.
In the latest Commonwealth Bank Survey of Business Trends and Prospects, released by the Victorian Employers’ Chamber of Commerce and Industry (VECCI), 81.3 percent of the 300 businesses surveyed said the compliance process was impacting on their business in either a moderate or major way.
“The survey results come as no surprise to many in business,” Mark Stone, VECCI chief executive, said.
Almost half of the respondents spend one to five hours per week focusing on red tape requirements and 16.5 percent spend six to 10 hours.
