Findings from the latest MYOB Business Monitor released by MYOB, one of Australia’s leading providers of business management solutions show that businesses are positive about the future.
According to the findings, 74% of businesses reported revenue levels at the same (39%) or higher levels (35%) than a year ago, and the average of all revenue increases reported is 26%.
In a further upbeat sign, 47% of businesses report they expect their revenue to increase even further in the next 12 months.
Adding to the positive results, almost half of businesses (49%) indicated that they have more work than usual in the pipeline over the next three months.
Tim Reed, CEO, MYOB said, “These results clearly indicate that the engine room of the Australian economy has survived the GFC and is now picking up speed. Whoever forms the government must look to support this momentum with some strong first term business policies.”
“The MYOB Business Monitor indicates that around a third of businesses were dissatisfied with Federal Government support prior to the election. Two key areas of concern were highlighted - having to deal with red tape and understanding how new legislation impacted their operations. Both were regarded by almost two-thirds of businesses as having a significant impact on their business success,” Mr Reed said.
However not everyone reported strong revenue growth, with 35% of Queensland businesses reporting lower revenues over the past 12 months. Businesses across Australia identify rising interest rates and fuel prices as two potential clouds on the horizon that will put pressure on their business.
Key findings from the August 2010 MYOB Business Monitor:
- Start-up businesses (<2 years) appear to have fared better over the last year, with 40% reporting a business revenue increase over the last 12 months (vs. 26% of >10 years for mature businesses)
- Younger business owners (18-39 years) are more likely (42%) to report revenue increases in the past year, compared to business owners aged over 40 years (30%)
- South Australia businesses are far more likely to have enjoyed revenue increases (50%) – the average report of revenue increase across all States is 35%
- The most confident about their business revenue increasing over the next 12 months are business owners in start-up businesses (59%), Professional & Business Services (55%), South Australia businesses (52%) and medium businesses with 20-199 employees (52%)
- Businesses that leverage their own website to promote their operations are more likely to report a revenue increase (39%) than those who don’t have a business website (32%)
- The highest reports of more work/sales in the pipeline are from business owners in South Australia (63%), in Agriculture, Forestry & Fishing (59%), and in Professional & Business Services (52%) vs. the average of 49% of all business owners
- Regional based businesses have a higher level of expectation for revenue increases in the next 12 months (51%), ahead of city/metro based businesses (46%) and rural based businesses (38%)
- Younger business owners are more confident about future revenue, with 51% of business owners aged 18 to 39 years expecting revenue increases in the next 12 months, compared to 44% of business owners aged over 40 years