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1/02/2010
Higher interest rates top business concerns in 2010
A national survey of small business has found higher interest rates and the cost of obtaining finance to expand are the top issues of concern in 2010.
As Federal Parliament resumes for its first session of the year, the Council of Small Business of Australia (COSBOA) and Telstra Business conducted a poll of small and medium enterprises (SMEs) to gauge their expectations about the economy and their own business in the year ahead.
Telstra Business Group Managing Director Deena Shiff said the survey was aimed at focussing more public attention on the issues of concern to SMEs.
“The survey found almost 90 per cent believe own business will either grow or remain steady in 2010. This is encouraging given these businesses are responsible for 4.5 million Australian jobs and contribute a third of our GDP,” Ms Shiff said.
The overall economic outlook was generally positive. Two in five small businesses (42%) think the condition of the Australian economy is better now than six months ago, and one in five (22%) consider it to be worse.
The likelihood of higher interest rates was the biggest concern – a worry to 81 percent of those surveyed. This was closely followed by the cost of finance (75%) and possible changes to taxation arising from the implementation of Henry Tax Review (74%).
A possible emissions trading scheme also figured highly in the concerns of small business, with almost 70 per cent indicating it was an issue of concern, while the withdrawal of the Government’s economic stimulus packages and possible skills shortages came lowest in the poll.
COSBOA Chief Executive Jaye Radisich said the results of the survey were consistent with member feedback over the past few months.
“The cost and availability of credit and finance has been a top issue for COSBOA and small businesses in recent times – it is patently clear that more has to be done to support small businesses in this area.”
“Small businesses need to be able to access affordable lines of credit to ensure that they can properly manage their businesses, maintain and upgrade their plant and equipment, and provide a productive, safe workplace for their employees.
“The tax breaks that the Federal Government offered to small businesses in 2009 were welcome, but many small businesses were excluded from that opportunity because they couldn’t finance capital expenditure in the first place.”
“Politicians, regulators and the banks need to hear this loud and clear message from small business and develop innovative solutions. Other countries have Government-supported programmes to help address this issue and it is time for Australia to take action,” Ms Radisich said.
About the survey: AMR Interactive polled more than 300 SME’s across Australia in January.
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