A recent survey by Bibby Financial Services - Flexible Cash Flow Solutions reveals that many small businesses don’t expect much support from next month’s Federal Budget.
According to the latest Bibby Barometer survey conducted in February, many businesses were hoping for, but not expecting reduced taxation (51%), a reduction in Government red tape (40%) and relaxed import/export regulations (20%).
Optimism about a positive outcome within this segment is low as the number of decision makers who expect the Budget to actually hinder small business growth outnumber those that expect it to support small businesses by almost two to one (47% versus 25%).
Also, twice as many small business decision makers think the Coalition winning the next election would be better for business than those who think the Coalition will be worse for business (47% versus 23%).
Gary Green, National Sales Director, Bibby Financial Services explains that small businesses want to see more certainty from government addressing the issues facing the sector such as insolvencies among retailers due to reduced consumer demand and lack of available funding.
Highlights of the Bibby Barometer survey report:
- Approximately half (49%) intend to maintain their current level of investment over the next 12 months compared to 28% who intend to invest more
- Majority of business decision makers (86%) have experienced cash flow issues in the past year, most commonly because customers make excuses for slow payments (34%)
- 24% faced issues with government red tape, compliance and tax administration
- 24% bore the brunt of higher costs of credit and 23% had limited access to credit (23%)
- 22% had trouble getting payment from large companies or government departments
- 22% had to write off bad debts
- 16% had difficulties meeting their tax payments on time
- 37% expect payment terms with longer periods in the coming quarter while 57% expect no change