Survey reveals confidence at GFC lows
Recent declines in financial planner sentiment may be a reflection of the broader state of Australian small business, if a new CPA Australia survey is an indicator.
The CPA Australia 2011 Australia Asia-Pacific Small Business Survey has found Australian small business confidence mirrors that displayed at the height of the global financial crisis and lags behind that of other regional players.
The survey, conducted in over 1500 small businesses in six Asia-Pacific economies, found Australian small business operators were the least likely to expect their business to grow in the next 12 months, with just 57 per cent indicating a positive growth outlook for the coming year.
CPA Australia noted that the 57 per cent figure was identical with that recorded at the height of the GFC.
It also found that 41 per cent of Australian businesses borrowed for business survival in the past 12 months, with 29 per cent borrowing to fund growth.
As well, the CPA Australia survey found that 18 per cent of Australian businesses had indicated no intention of undertaking key business management activities such as stock control, sale of assets, marketing or promotion in the coming year.
Commenting on the survey findings, CPA Australia chief executive Alex Malley said they painted a bleak picture of small business attitudes.
He said that while global economic volatility had played a part, the greater contributors had been increasing expenses, higher borrowing costs and tighter lending conditions.
AUTHOR
Mike Taylor
Recommended for you
The Australian Financial Complaints Authority has reported an 18 per cent increase in investment and advice complaints received in the financial year 2025, rebounding from the previous year’s 26 per cent dip.
EY has broken down which uses of artificial intelligence are presenting the most benefits for wealth managers as well as whether it will impact employee headcounts.
Advice licensee Sequoia Financial Group has promoted Sophie Chen as an executive director, following her work on the firm’s Asia Pacific strategy.
The former licensee of Anthony Del Vecchio, a Melbourne adviser sentenced for a $4.5 million theft, has seen its AFSL cancelled by ASIC after a payment by the Compensation Scheme of Last Resort.
