Challenging environment for small businesses
(28 November 2012 – Australia) The economic environment continues to remain challenging for small businesses in Australia according to ANZ general manager of Small Business, Nick Reade.
An ANZ source revealed it was clear sales were dampened with overall sales growth remaining relatively soft.
Small businesses did outperform in the resource-rich states of Western Australia (WA) and Northern Territory (NT).
"There’s no doubt the environment continues to remain challenging for small business in Australia – particularly for those in sectors and states not involved in the mining industry.
Overall, growth in small business sales has remained quite soft and mixed across sectors and states," Reade said.
"It’s positive to see such a strong result for companies offering travel and food-related services, but for retailers selling appliances like fridges and TVs, clothing and household items, the outlook remains less favourable.
"Looking ahead, companies will be under pressure to adapt to these conditions and remain competitive. Those exposed to interest rate sensitive parts of the economy, including housing and durables consumption, are likely to see some benefit from the reduction in interest rates over the past year. Nevertheless, we expect only a gradual pick-up in these sectors during 2013."
Small businesses did outperform in the resource-rich states of Western Australia (WA) and Northern Territory (NT).
"There’s no doubt the environment continues to remain challenging for small business in Australia – particularly for those in sectors and states not involved in the mining industry.
Overall, growth in small business sales has remained quite soft and mixed across sectors and states," Reade said.
"It’s positive to see such a strong result for companies offering travel and food-related services, but for retailers selling appliances like fridges and TVs, clothing and household items, the outlook remains less favourable.
"Looking ahead, companies will be under pressure to adapt to these conditions and remain competitive. Those exposed to interest rate sensitive parts of the economy, including housing and durables consumption, are likely to see some benefit from the reduction in interest rates over the past year. Nevertheless, we expect only a gradual pick-up in these sectors during 2013."