Private Business Barometer V released
(5 May 2009 – Australia) Private businesses continue to be optimistic about the medium to long term outlook, although they have readjusted targets for the next 12 months, according to the fifth edition of PricewaterhouseCoopers Private Business Barometer.
The PricewaterhouseCoopers Private Business Barometer, in conjunction with
East & Partners, asked challenging questions of more than 750 private business
owners with an annual turnover of between A$10 to $100 million.
Their answers create a collection of insights on growth, funding, operations, people and government policy that paint an overall picture of how private businesses are managing the risks and opportunities in the economy.
PricewaterhouseCoopers partner Gregory Will says, "Private businesses are feeling the impact of the global financial crisis and resulting recession. But what happens next is not as important as how you react to it."
"Now is the time to react: create and maximise opportunities. Go back to basics and reinvest in your business."
"When the dust settles and the liquidity returns to capital markets, confidence will return and economies will stabilise. It will be how private businesses react that will set apart the successful businesses," he says.
East & Partners Principal Analyst Paul Dowling says, "With domestic output edging down during the past half year, private businesses have started to report considerably weaker profits. Almost one half of businesses said their performance in the past year fell short of set revenue targets. With challenges mounting, most private businesses in this sector expect even harder times in the year ahead".
Key findings from Private Business Barometer V
Medium-term outlook robust: Overall, businesses are still targeting double-digit sales and profit growth for the next three years.
Growth states hold the line: Western Australia and Queensland reported double-digit average sales and profit growth over the past 12 months. By contrast, average sales and profit growth in New South Wales and Victoria had fallen well into single digits.
Most businesses losing value: Over half of respondents believe the value of their business is down, with the average reduction more than one quarter.
Federal Government asked to listen: Nearly half of businesses want an annual summit for small and medium businesses (SMEs) or a dedicated SME committee formed to address the sector’s concerns.
Debt reduction and cash form top agenda: If businesses were given A$1 million each, the majority would use the funds to pay down debt or maintain cash reserves.
Talent war now a skirmish: For the first time, lack of qualified talent has been replaced by high wage costs as the top hiring constraint for businesses.
For more information about the latest edition of the Private Business Barometer, to download a copy or to listen to an audiocast about the findings, please visit www.pwc.com/au/pcs
Their answers create a collection of insights on growth, funding, operations, people and government policy that paint an overall picture of how private businesses are managing the risks and opportunities in the economy.
PricewaterhouseCoopers partner Gregory Will says, "Private businesses are feeling the impact of the global financial crisis and resulting recession. But what happens next is not as important as how you react to it."
"Now is the time to react: create and maximise opportunities. Go back to basics and reinvest in your business."
"When the dust settles and the liquidity returns to capital markets, confidence will return and economies will stabilise. It will be how private businesses react that will set apart the successful businesses," he says.
East & Partners Principal Analyst Paul Dowling says, "With domestic output edging down during the past half year, private businesses have started to report considerably weaker profits. Almost one half of businesses said their performance in the past year fell short of set revenue targets. With challenges mounting, most private businesses in this sector expect even harder times in the year ahead".
Key findings from Private Business Barometer V
Medium-term outlook robust: Overall, businesses are still targeting double-digit sales and profit growth for the next three years.
Growth states hold the line: Western Australia and Queensland reported double-digit average sales and profit growth over the past 12 months. By contrast, average sales and profit growth in New South Wales and Victoria had fallen well into single digits.
Most businesses losing value: Over half of respondents believe the value of their business is down, with the average reduction more than one quarter.
Federal Government asked to listen: Nearly half of businesses want an annual summit for small and medium businesses (SMEs) or a dedicated SME committee formed to address the sector’s concerns.
Debt reduction and cash form top agenda: If businesses were given A$1 million each, the majority would use the funds to pay down debt or maintain cash reserves.
Talent war now a skirmish: For the first time, lack of qualified talent has been replaced by high wage costs as the top hiring constraint for businesses.
For more information about the latest edition of the Private Business Barometer, to download a copy or to listen to an audiocast about the findings, please visit www.pwc.com/au/pcs
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