SMEs optimistic about 2010 prospects

By Larry Schlesinger | 02 Feb 2010

The small business sector, which counts many brokers as members, appears optimistic about its prospects in 2010, according to the results of a national poll.

Carried out by the Council of Small Business of Australia (COSBOA) and Telstra Business, the survey found almost 90% of SMEs believe their own businesses will either grow or remain steady in 2010.

Telstra Business group managing director Deena Shiff said this result was encouraging given these businesses are responsible for 4.5 million Australian jobs and contribute a third of Australia's GDP.

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 primary concerns among SMEs are around interest rates and funding, indicating opportunities for commercial brokers servicing this sector.

According to the poll, small businesses biggest concerns are higher interest rates and the cost of obtaining finance to expand.

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."

Related stories:

Cash flow pressures build for small businesses  - The growth of Australian firms in 2010 could be curtailed by building cash flow pressures, according to a report released by Dun & Bradstreet.

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