SME confidence has taken a dive as businesses have difficulty securing finance, but few are considering closing up shop.
The Sensis Business Index has found confidence among small and medium businesses has taken a hit. The index found 30% of businesses are worried about the year ahead, including 10% who said they were extremely worried.
"While we are not seeing anything like the low levels of six months ago, business confidence is considerably down on this time last year," report author Christena Singh said.
In spite of the difficulties facing SMEs, Singh indicated that few were willing to call it quits. Only 11% of small businesses said they were planning to close or sell their business, down 6% from six months ago.
"In fact, almost half of businesses are still aiming for growth, and many are planning business strategies to grow their business despite what they perceive are comparatively adverse economic conditions," Singh said.
Singh said small businesses felt it was difficult to access the finance necessary for business investment, and that this sentiment had led to weak capital expenditure trends. She said businesses are also expecting weak trading conditions for the next quarter and the year ahead.
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