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Victorian small businesses beating economic downturn

Despite the tough economic conditions experienced by many SMEs across the country, Victorian businesses proved resilient in the last quarter of 2008.

The state fought off the downward pressures to be one of the best performing states in the NAB SME Survey Australia – December 2008.

The latest results show NAB’s business conditions index for Victorian SMEs decreased by 3 index points to reach 1 index point in the December quarter, with 26 percent of Victorian SMEs reporting good or very good conditions and 25 percent poor or very poor conditions.

Even though the index fell, Victorian SMEs were the second best performing state (along with WA) across Australia after South Australia. They were better than both the national average (-4 index points) and their large counterparts (-10 index points).

The small size segment (annual sales between $2-3 million) was the best performing at 3 index points, followed by the large segment (annual sales between $5-10 million) at 2 index points. Conditions were weakest in the mid-size segment (annual sales between $3-5 million) which recorded a poor outcome of -3 index points.

Kevin Potter, State General Manager of nabbusiness in Victoria says that although conditions for Victorian SMEs had become tougher, the state should take encouragement from the results. “Since the last survey economic conditions in Victoria, across Australia and around the world have deteriorated significantly. But I am encouraged that in Victoria our small business sector appears resilient and well placed to ride out the economic downturn.”

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Jen Bishop

Jen Bishop

Jen was the publisher at Loyalty Media and editor of Dynamic Business, Australia's largest circulating small business magazine, from 2008 until 2012. She is now a full-time blogger at The Interiors Addict.

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