MYOB Business Monitor. November The voice of Australia s business owners. myob.com.au

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1 MYOB Business Monitor The voice of Australia s business owners November 2009 myob.com.au

2 Quick Link Summary Over half of Australia s business owners expect the economy to begin to improve over the next 12 months. Reports of revenue decreases are higher than reports of revenue increases. Under half of business owners surveyed expect an increase in their business revenue in While less than half of business owners surveyed were confident about their business prospects in July 2009, over half of business owners are now confident of their business prospects in November A third of small business owners surveyed report usual levels of upcoming work/sales, but one fifth report lower levels than usual. The majority of business owners surveyed are confident that their business prospects will be somewhat better by end 2010 than they are now. Business owners surveyed currently have most difficulty with marketing to get new customers or new business; getting funding or finance to grow their business; getting affordable and reliable business advice; and managing the cash flow of their business. Dissatisfaction with the Federal Government s support of and contribution to businesses has declined. Business owners dissatisfaction with their State Government s support of and contribution to business remains high in November 2009, but has fallen since September The majority of business owners surveyed source information to help them run their business from their accountant/bookkeeper. The majority of business owners are still being paid in the same time as they were 6 months ago. Less than a third of business owners surveyed are currently funded by business loans or finance. Very few business owners intend to reduce their number of employees in the next 12 months. Over a fifth of business owners surveyed work over 51 hours a week. A quarter of business owners surveyed have increased the variety of their products and services in recent months. The majority of business owners surveyed are aware of the Federal Government s Business Tax Break. 2

3 Table of Contents Quick Link Summary... 2 Table of Contents... 3 About the study... 6 Reporting by Industry, State and Business Size... 7 Business owner expectations for economic improvement in Australia... 8 Business revenue compared with a year ago Expectations of business revenue growth over next 12 months Current confidence in present business prospects Work or sales in the pipeline in next three months Projected confidence in business prospects in 12 months time The difficulty or ease business owners have with certain business tasks Present satisfaction with Federal Government s support of business in Australia Present dissatisfaction with their State Government s support of business Sources of information about running their business The time it is taking businesses to get paid by customers or clients Business loans and finance, and meeting repayment obligations Employment intentions and numbers in next 12 months The hours that business owners work to run their business Changes in business activities in the last six months The Federal Government s Business Tax Break Appendix 1 Perceptions of business prospects and business revenue increases over the next 12 months Appendix 2 Perceptions of Federal Government Performance Appendix 3 Perceptions of State Government performance Appendix 4 Survey Questions

4 Lists and Figures Business owner expectations for economic improvement in Australia... 8 Figure 1: Time expectations for future economic improvement in Australia (% of n = 1,165)... 8 Figure 1.1 Expectation of economic improvement in the next 12 months: by Number of Employees (% of n=1,165).. 9 Figure 1.2 Expectation of economic improvement in the next 12 months: by State (% of n = 1,165)... 9 Figure 1.3 Expectation of economic improvement in the next 12 months: by Industry (% of n = 1,165)... 9 Figure 2: Revenue increases vs. decreases last 12 months, as reported by total sample (% of n=1,165) Figure 2.1: Revenue increase percentages in last 12 months, as reported by 22% of the total sample (% of n = 265) 11 Figure 2.2: Revenue decrease percentages in last 12 months, as reported by 39% of the total sample (% of n = 456) 11 Figure 2.3 Revenue increases and decreases: by Number of Employees (% of n=1,165) Figure 2.4 Revenue decrease percentages reported over last 12 months: by State (% of n = 1,165) Figure 2.5 Revenue decrease percentages reported over last 12 months: by Industry (% of n = 1,165) Expectations of business revenue growth over next 12 months Figure 3: Expectations of business revenue in 12 months time (% of n = 1,165) Figure 3.2 Expectations of business revenue increases in 12 months time: by State (% of n = 1,165) Figure 3.3 Expectations of business revenue increases in 12 months time: by Industry (% of n = 1,165) Current confidence in present business prospects Figure 4: Confidence in their prospects at the present time: by Total Sample (% of n = 1,165) Figure 4.1: Confidence in their prospects at the present time: By Number of Employees (% of n=1,165) Figure 4.2: Confidence in their business prospects at the present time: by State (% of n = 1,165) Figure 4.3 Confidence in business prospects at the present time: by Industry (% of n = 1,165) Work or sales in the pipeline in next three months Figure 4.5 Work or sales in pipeline for next 3 months compared with usual: by State (% of n = 1,165) Figure 4.6 Work or sales in pipeline for next 3 months compared with usual: by Industry (% of n = 1,165) Projected confidence in business prospects in 12 months time Figure 5: Business owner confidence in how their business prospects will be in 12 months time: (% of n = 1,165)...22 Figure 5.1: Business owner confidence in how their business prospects will be in 12 months time: By Number of Employees (% of n=1,165)...22 Figure 5.2: Confidence in how their business prospects will be in 12 months time: by State (% of n = 1,165) Figure 5.3 Confidence in how their business prospects will be in 12 months time: by Industry (% of n = 1,165) The difficulty or ease business owners have with certain business tasks Present satisfaction with Federal Government s support of business in Australia Figure 7: Dissatisfaction and Satisfaction with Federal Government s support of business in Australia (% of n=1,165) Figure 7.1: Satisfaction and dissatisfaction with Federal Government s support of business in Australia: by Business Size/Number of Employees (% of n=1,165) Figure 7.2: Satisfaction and dissatisfaction with Federal Government s support of business: by State (% of n = 1,165) Figure 7.3: Satisfaction and dissatisfaction with the Federal Government s support of business: by Industry (% of n = 1,000)

5 Present dissatisfaction with their State Government s support of business Figure 8: Satisfaction with their State Government s support for business (% of n = 1,165) Figure 8.1: Satisfaction and dissatisfaction with their State Government s support of business in Australia: by Business Size/Number of Employees (% of n=1,165) Figure 8.2 Satisfaction and dissatisfaction with State Government s support for business: by State (% of n = 1,165). 31 Figure 8.3 Satisfaction and dissatisfaction with the State Government s support for business: by Industry (% of n = 1,165) Figure 9: Sources of Information on running your business: (% of n = 1,165) The time it is taking businesses to get paid by customers or clients Figure 10: Time taken to get paid compared with 6 months ago: Total Sample (% of n= 1,165) Business loans and finance, and meeting repayment obligations Figure 11: Currently funded by loans, borrowings, an overdraft or business finance: (% of n=1,165) Figure 11.1: Ease or difficulty of meeting business loan or finance repayment obligations in the next 12 months: Those with Business Finance (% of n= 339) Employment intentions and numbers in next 12 months Figure 12: Employees hiring or reduction intentions in the next 12 months: Total Sample (% of n=1,165) The hours that business owners work to run their business Figure 13: Number of hours worked to run their business in a normal working week: Total Sample (% of n=1,165).. 37 Changes in business activities in the last six months Figure 14: Changes in business activities in last 6 months: Total Sample (% of n=1,165) The Federal Government s Business Tax Break Figure 15: Awareness of Federal Government s Business Tax Break: Total Sample (% of n=1,165) Figure 15.1: Whether they have taken advantage of/acted upon the Federal Government s Business Tax Break: Total Sample (% of n=1,165) Figure 15.2: Whether they believe that the Federal Government s Business Tax Break is or could be helpful to businesses like theirs: Total Sample (% of n=1,165) Appendix 1 Perceptions of business prospects and business revenue increases over the next 12 months Figure 16: Businesses confidence in business prospects and expectations of business revenue increases over the next 12 months Appendix 2 Perceptions of Federal Government Performance Figure 17: Businesses perceptions of the Federal Government s performance in contributing to the development of and supporting businesses in Australia Appendix 3 Perceptions of State Government performance Figure 18: Businesses perceptions of their State Government s performance in contributing to the development of and supporting businesses in Australia Appendix 4 Survey Questions

6 About the study This report presents the summary findings for key indicators from the MYOB Business Monitor comprising a national sample of 1,165 business proprietors and directors, conducted in October The businesses participating in the online survey are defined as both non employing and employing businesses with 0 employees ( sole traders ), 1 4 employees ( micro businesses ), 5 19 employees ( small businesses ) and employees ( medium businesses ). Results have been weighted to reflect the business population distribution according to the Australian Bureau of Statistics (ABS) for company size, length of time operating, region, and selected ANZSIC Industry divisions (refer to ABS publications Characteristics of Small Business, 2004; and Counts of Australian Businesses, June 2007; ). Industries have then been grouped (see next page) for the purposes of providing meaningful results based upon sample segments of reasonable size, and with a lower margin of error. This research report was prepared by The Financial Research Company and fieldwork was completed by Colmar Brunton (a Millward Brown Company) for: MYOB Naomi Helleren (03) naomi.helleren@myob.com All information provided in this media survey is the property of MYOB, and may not be reproduced without permission. Any data used must be referenced to the MYOB Business Monitor. 2009, MYOB Limited, all rights reserved. Copyright strictly enforced. The key indicators presented in this report include: Business Issues: Expectations for future economic improvement Business revenue compared with 12 months ago Expectations of business revenue in 12 months time Current confidence in present business prospects Projected work or sales for next 3 months compared with usual Projected confidence in business prospects in 12 months time The difficulty or ease they have with 16 nominated business tasks Sources of information about running their business Time it is taking to get paid by customers or clients Business loans and finance, and meeting repayment obligations Employment intentions and numbers in next 12 months Hours business owners work to run their business Changes in business activities in last six months. Government Issues: Present satisfaction with Federal Government s and State Government s support of business The Federal Government s Business Tax Break. 6

7 Reporting by Industry, State and Business Size Mind Your Own Business. Smarter. The findings of this research are reported by industry type: (Industries have been grouped as follows for the purposes of providing meaningful results based upon sample segments of reasonable size, and with a lower margin of error. Occasionally in this report, industries have been de grouped where there are very different results between those in an industry grouping.) Industry Sample Agriculture, Manufacturing and Wholesale 164 Construction, Trades and Transport 200 Finance and Insurance 112 Professional and Business Services 300 Retail and Hospitality 165 Other Industries (not included above, but included in total results) 224 Total 1,165 The findings of this research are also reported by State for some questions, and the sample size in each State is as follows: State Sample New South Wales (NSW) 387 Victoria (VIC) 284 Queensland (QLD) 263 South Australia (SA) 90 Western Australia (WA) 95 Other States and Territories* 46* Total 1,165 Note: * Sample sizes for TAS (26), NT (10) and ACT (10) are too small for reliable statistics at a State level, but the results for TAS, NT and ACT have been included in the total figures. The findings of this research are also reported by the number of employees in each of the businesses surveyed and was capped for companies with less than 200 employees. The proportions of sole, micro, small and medium businesses are in line with their proportions of all businesses in Australia. Number of Employees/Business Type Sample 0 Employees/Sole Traders Employees/Micro Business Employees/Small Business Employees/Medium Business Employees/ Sole, Micro, Small, Medium Businesses 1,165 7

8 Business owner expectations for economic improvement in Australia Over half of Australia s business owners expect the economy to begin to improve over the next 12 months. 58% of business owners expect economic recovery in the next 12 months While in the last survey (July 2009), 45% of business owners surveyed expected the economy to improve within 12 months, their optimism about the economy has now risen to 58%. (See Figure 1) Business owners are now more optimistic While in the last survey, only 18% expected recovery within the next six months, 33% of business owners now expect the economic recovery to be within that period of time. (See Figure 1) Owners of sole and medium businesses are slightly more optimistic than other business owners 61% of sole traders and 62% of medium business owners believe the economy will improve in the next 12 months, compared with 58% of micro business owners, and 55% of small business owners (who were the slightly more positive sector in July 2009). Start up business owners are the most positive of all, with 68% believing the economy will begin to improve within 12 months. (See Figure 1.1) Western Australia business owners are most optimistic, while New South Wales business owners are the most pessimistic about economy This renewed confidence is most pronounced in Western Australia, where 68% of business owners believe the Australian economy will improve within 12 months, whereas only 55% of business owners share this opinion in New South Wales. Victorian business owners have recovered from a low of 35% in July to 63%. (See Figure 1.2) Business owners in the Agriculture, Manufacturing and Wholesale industries are not so optimistic about the economy Business owners in the Agriculture, Manufacturing and Wholesale industries are slightly more pessimistic than other industries, with only 51% of business owners in these industries expecting the economy to improve within 12 months time. (See Figure 1.3) Base: Business owners and directors (n = 1,165) Q. When do you believe that Australia s economy will start to improve from its present position? Figure 1: Time expectations for future economic improvement in Australia (% of n = 1,165) Nov 09 Jul 09 Next 3 months 16% 16% 6% 3 6 months 17% 17% 12% 6 12 months months 22% 25% 25% 27% 22% 27% months 9% 9% 10% >2 years Don't Know 4% 6% 6% 10% 4% 8% 8

9 Figure 1.1 Expectation of economic improvement in the next 12 months: by Number of Employees (% of n=1,165) Nov 09 Jul 09 ALL SOLE (0) MICRO (1 4) SMALL (5 19) MEDIU M (20 58% 61% 58% 55% 62% 58% 45% 61% 45% 58% 44% 55% 49% 62% 47% Figure 1.2 Expectation of economic improvement in the next 12 months: by State (% of n = 1,165) Nov 09 Jul 09 AUS NSW 58% 55% 58% 45% 55% 45% VIC 63% 63% 35% QLD SA 57% 63% 57% 45% 63% 40% WA 68% 68% 50% Figure 1.3 Expectation of economic improvement in the next 12 months: by Industry (% of n = 1,165) Nov 09 Jul 09 Agriculture, Manufacturing and Wholesale 51% 51% 47% Construction, Trades and Transport 61% 61% 43% Finance and Insurance 55% 55% 49% Professional and Business Services 65% 65% 48% Retail and Hospitality 59% 59% 40% 9

10 Business revenue compared with a year ago Reports of revenue decreases are higher than reports of revenue increases. Only 22% of business owners report an increase in revenue over the last 12 months While 35% of business owners surveyed indicate that their business revenue has not changed in the last twelve months, 39% report a decrease in business revenue (as in July 2009), and only 22% report an increase in business revenue since that time (3% more than those who reported a revenue increase in the July 2009 survey). (See Figure 2) Revenue increases and decreases of between 10 29% most often reported The 22% of business owners reporting a revenue increase over the last 12 months most commonly (58%) report an increase of 10 29%. The 39% of business owners reporting a revenue decrease most commonly (54%) describe a decrease of the same percentage (10 29%). (See Figure 2.1 and Figure 2.2) More small business owners report business revenue increases, while more micro and medium business owners report business revenue decreases 33% of small business owners report revenue increases over the last twelve months, compared with 25% of medium business owners, 21% of sole traders and 20% of micro business owners. 43% of micro business owners and 42% of medium business owners report business revenue losses over the same period, compared with 37% of both sole traders and small business owners. (See Figure 2.3) Business owners with website and owners of start up businesses most likely to have increased revenue Those business owners who have a business website are the most likely (29%) to have experienced a business revenue increase in the last twelve months. The businesses that are most likely (47%) to have experienced a decrease are those that have been established for more than 10 years, in contrast to start up businesses of less than two years in business, where only 28% of those owners report decreases in the last 12 months. Queensland business owners report most revenue decreases 45% of Queensland business owners report a revenue decrease over the last twelve months, compared with between 36% and 39% of business owners in the other States. Fewer New South Wales business owners (37%) report revenue decreases than in the same State in July 2009 (44%). (See Figure 2.4) Agriculture revenues down more than other industries 48% of business owners in the Agriculture, Forestry and Fishing industries report business revenue decreases over the last twelve months, compared with only 31% of business owners in the Professional and Business Services industries. The business owners reporting the most revenue increases are in the Finance and Insurance (26%), Professional and Business Services (25%), and Manufacturing and Wholesale (25%) industries. (See Figure 2.5) Base: Business owners and directors (n = 1,165) Q. At the present time, is your business revenue (or gross turnover or sales) up or down on a year ago, or about the same? Please indicate how much your business revenue (or gross turnover or sales) is up or down on a year ago? (Please type in the percentage in the box below) 10

11 Figure 2: Revenue increases vs. decreases last 12 months, as reported by total sample (% of n=1,165) Nov 09 Jul 09 4% Increase 22% 19% Increase Remain the same Decrease Don't know/not sure 39% 22% Same 35% 35% Decrease 39% 39% 35% Don t know 4% 7% Figure 2.1: Revenue increase percentages in last 12 months, as reported by 22% of the total sample (% of n = 265) Nov 09 Jul % 11% 11% 16% 10 19% 33% 33% 29% 20 29% 25% 25% 28% 30 49% 50 59% 60% or more 7% 12% 11% 12% 10% 7% 8% 11% 9% Figure 2.2: Revenue decrease percentages in last 12 months, as reported by 39% of the total sample (% of n = 456) Nov 09 Jul % 6% 6% 7% 10 19% 24% 24% 24% 20 29% 30% 30% 23% 30 49% 23% 23% 21% 50 59% 60% or more 10% 7% 10% 14% 7% 11% 11

12 Figure 2.3 Revenue increases and decreases: by Number of Employees (% of n=1,165) Decreases Nov 09 Jul 09 SOLE (0) 21% 37% 37% 38% MICRO (1 4) 20% 43% 43% 40% SMALL (5 19) 33% 37% 37% 41% MEDIUM (20 199) 25% 42% 42% 41% Increases Decreases Figure 2.4 Revenue decrease percentages reported over last 12 months: by State (% of n = 1,165) AUS NSW 39% 39% Nov 09 Jul 09 39% 39% 39% 44% VIC 37% 37% 40% QLD 45% 45% 37% SA WA 37% 36% 37% 37% 36% 35% Figure 2.5 Revenue decrease percentages reported over last 12 months: by Industry (% of n = 1,165) Nov 09 Jul 09 Agriculture, Forestry and Fishing 48% 48% 40% Manufacturing and Wholesale 31% 31% 40% Construction, Trades and Transport 44% 44% 44% Finance and Insurance Professional and Business Services Retail and Hospitality 34% 31% 43% 34% 33% 31% 32% 43% 44% 12

13 Expectations of business revenue growth over next 12 months Under half of business owners surveyed expect an increase in their business revenue in % of business owners expect an increase in revenue over next 12 months While only 22% of business owners surveyed report revenue increases in the last 12 months, 46% expect to increase their business revenue over the next 12 months, 35% believe it will remain the same, and 12% believe their business revenue will decrease in the next 12 months (7% are unsure). So, while 58% of business owners expect the economy to improve in the next 12 months (see earlier), not all of them expect this to translate into revenue gains for their business. (See Figure 3) Optimism about revenue increases has not yet returned to its pre global financal crisis level in September 2008 The 46% of business owners who predict a revenue increase over the next twelve months can be compared with 53% who predicted a revenue increase over the next year in the September 2008 MYOB Small Business Survey. (See Figure 3) Younger business owners and owners of start up businesses are more optimistic about impending business revenue increases 55% of year old business owners expect a revenue increase in the next 12 months, compared with 42% of business owners aged 40 or more years. Also, 64% of owners of start up businesses of less than 2 years are expecting revenue increases in the next twelve months, compared to 34% of owners of businesses established for more than 10 years. Business owners of different sizes of business are similarly optimistic Owners of medium businesses are slighly more optimistic of revenue increases (50%) than are owners of small businesses (48%), micro businesses (46%) and sole traders (45%). (See Figure 3.1) Business owners in Western Australia are the most revenue optimistic and the most revenue pessimistic Western Australian business owners are the most optimistic (48%) about revenue increases and most pessimistic (17%) about revenue decreases in the next 12 months. South Australian business owners are the least optimistic (43%) about a revenue increase in the next 12 months. (See Figure 3.2) Low optimism in the Agriculture, Forestry and Fishing, and Transport industries Only 30% of business owners in the Agriculture, Forestry and Fishing industries and 30% in the Transport industry envisage an increase in business revenue in the next 12 months, while the majority of business owners in the Professional and Business Services industries (54%) now expect business revenue increases in that time. Within the latter industry segment, Property and Real Estate Professionals (65%) are most optimistic of all. (See Figure 3.3) Business owners with a website more optimistic of an increase in business revenue While there is little or no difference in the optimism of businesses by number of employees, 58% of those business owners with a business website expect to increase their revenue over the next year, compared with only 39% of those business owners who don t have a business website. Base: Business owners and directors (n = 1,165) Q. And how do you expect your business revenue (or gross turnover or sales) in 12 months time to compare with your business revenue at the present time? 13

14 Figure 3: Expectations of business revenue in 12 months time (% of n = 1,165) Nov 09 Jul 09 7% Increase 46% 37% Increase Remain the same Decrease 12% 46% Same 35% 36% Decrease 12% 15% Don't know/not sure 35% Don t know 7% 13% Figure 3.1: Expectations of business revenue in 12 months time: by Number of Employees (% of n = 1,165) Increases Nov 09 Jul 09 ALL (0 199) 46% 12% 46% 37% SOLE (0) 45% 12% 45% 37% MICRO (1 4) 46% 11% 46% 35% SMALL (5 19) 48% 9% 48% 37% MEDIUM (20 199) 50% 16% 50% 35% Increases Decreases 14

15 Figure 3.2 Expectations of business revenue increases in 12 months time: by State (% of n = 1,165) Nov 09 Jul 09 Mar 09 Dec 08 Sep 08 AUS 46% 46% 37% 45% 44% 53% NSW 44% 44% 35% 41% 41% 50% VIC 46% 46% 33% 46% 46% 55% QLD 47% 47% 43% 53% 46% 53% SA 43% 43% 38% 39% 34% 50% WA 48% 48% 36% 42% 43% 53% Figure 3.3 Expectations of business revenue increases in 12 months time: by Industry (% of n = 1,165) Nov 09 Jul 09 Mar 09 Dec 08 Sep 08 Agriculture, Forestry, Fishing Transport 30% 30% 30% 35% 38% 41% 43% 30% 28% 48% 29% 53% Manufacturing and Wholesale Construction and Trades 45% 42% 45% 34% 46% 44% 53% 42% 48% 39% 36% 44% Finance and Insurance Professional and Business Services 50% 54% 50% 47% 55% 54% 56% 54% 46% 49% 48% 61% Retail and Hospitality 48% 48% 33% 42% 48% 59% 15

16 Current confidence in present business prospects Mind Your Own Business. Smarter. While less than half of business owners surveyed were confident about their business prospects in July 2009, over half of business owners are now confident of their business prospects in November Business confidence in present prospects still not fully recovered from the global financial crisis In the September 2008 MYOB Small Business Survey, 68% of business owners were confident about their business prospects in the coming year. This dropped to 47% in the July 2009 MYOB Business Monitor, and has now recovered slightly, with 52% of business owners confident of their business prospects at the present time and only 21% expressing concern about their present business prospects. (See Figure 4) Owners of medium businesses, start ups and those with a business website are more confident 68% of medium business owners are confident in their immediate prospects at the present time, compared with 56% of small business owners, 49% of micro business owners and 51% of sole traders. (See Figure 4.1) Correspondingly, as can be seen in the last section, medium business owners are most optimistic (50%) about their business revenue in 12 months time. (See Figure 3.1) Start up business owners (62%) are far more confident in their present prospects than are the owners of businesses established for 10 or more years (43%). And while 57% of business owners with a business website are confident about their present prospects, only 50% of owners without a business website have the same confidence. Victoria and New South Wales business owners have regained the most confidence in their present prospects The confidence of Victorian business owners in their present prospects has risen 7%, from 49% in July 2009 to 56% now, and the confidence of New South Wales business owners has risen by 8%, from a low 43% in July 2009 to 51% in November Confidence in the other States has remained at similar levels to those expressed in July (See Figure 4.2) Business owners in the Professional and Business Services industries are the most confident, while business owners in the Retail and Hospitality industries are the least confident 60% of business owners surveyed in the Professional and Business Services, and Finance and Insurance industries are now confident about their present business prospects, and so are considerably more confident than business owners in the Construction, Trades and Transport industries (47%), and Retail and Hospitality industries (42%). (See Figure 4.3) Base: Business owners and directors (n = 1,165) Q. Thinking about the present, how confident or concerned are you about your business prospects now? (Prior July 2009 Question: Thinking about the next 12 months, how confident do you feel about the prospects for your own business?) 16

17 Figure 4: Confidence in their prospects at the present time: by Total Sample (% of n = 1,165) 17% 27% 4% 11% 41% Very confident Quite confident Neither Quite concerned Very concerned Figure 4.1: Confidence in their prospects at the present time: By Number of Employees (% of n=1,165) ALL (0 199) 52% SOLE (0) 51% MICRO (1 4) 49% Quite/Very Confident SMALL (5 19) 56% MEDIUM (20 199) 68% 17

18 Figure 4.2: Confidence in their business prospects at the present time: by State (% of n = 1,165) Nov 09 Jul 09 Mar 09 Dec 08 Sep 08 AUS 41% 11% 52% 47% 59% 61% 68% NSW 39% 12% 51% 43% 59% 61% 63% VIC 48% 8% 56% 49% 60% 63% 67% QLD 41% 10% 51% 51% 59% 56% 70% SA 40% 11% 51% 51% 59% 58% 70% WA 36% 13% 49% 50% 51% 75% 75% Quite Confident Very Confident Figure 4.3 Confidence in business prospects at the present time: by Industry (% of n = 1,165) Nov 09 Jul 09 Mar 09 Dec 08 Sep 08 Agriculture, Manufacturing, Wholesale 42% 8% 50% 38% 58% 56% 53% Construction, Trades, Transport 39% 8% 47% 40% 52% 59% 74% Finance and Insurance 44% 16% 60% 63% 67% 68% 73% Professional and Business Services 45% 15% 60% 58% 63% 61% 78% Retail and Hospitality 34% 8% 42% 43% 57% 63% 69% Quite Confident Very Confident 18

19 Work or sales in the pipeline in next three months Mind Your Own Business. Smarter. A third of small business owners surveyed report usual levels of upcoming work/sales, but one fifth report lower levels than usual. Business owners who report more or less work/sales in the pipeline report only a little more or less, rather than a lot more or less While 33% of business owners in the survey report about the same amount of work or level of sales as usual, 27% report a little more, and 20% report a little less. This contrasts with 10% who say they have a lot more work/sales in the pipeline than expected, and 9% who say they have a lot less work/sales in the pipeline than normal. (See Figure 4.4) Business owners in South Australia have the most positive ratio of more work/sales to less work/sales 42% of business owners in South Australia report more work/sales, with only 21% of business owners in that State reporting less work/sales than usual. In Victoria, 38% of business owners report more work/sales, with 28% reporting less work/sales in the pipeline than usual. (See Figure 4.5) The larger the business, the more likely the owner is to report more work or sales than usual 48% of medium business owners say that they have more work/sales in the pipeline than usual, and 44% of small business owners report the same. This compares with 37% of micro business owners and 33% of sole traders who report more work/sales in the pipeline than usual. Business owners in the Professional and Business Services and Finance and Insurance industries report better business 40% of business owners in the Professional and Business Services and Finance and Insurance industry, report better than normal work or sales in the pipeline. Business owners in the Transport industry report the least change (46% the same), with only 17% reporting more work in the pipeline at present, compared with 31% who say that they have less work/sales than usual in the pipeline at present. (See figure 4.6) Base: Business owners and directors (n = 1,165) Q. Please indicate how much work you have got on, or what sales you have in the pipeline, in the next 3 months, compared to what you would usually expect or normally have. (Please select one only) Figure 4.4 Work or sales in pipeline for next 3 months compared with usual: by Total Sample (% of n = 1,165) 9% 2% 10% 20% 33% 27% A lot more A little more About the same A little less A lot less Don't know 19

20 Figure 4.5 Work or sales in pipeline for next 3 months compared with usual: by State (% of n = 1,165) AUS 37% 29% NSW 35% 29% VIC 38% 28% QLD 35% 30% SA 42% 21% WA 35% 30% More than usual Less than usual Figure 4.6 Work or sales in pipeline for next 3 months compared with usual: by Industry (% of n = 1,165) Agriculture, Forestry and Fishing 31% 29% Manufacturing and Wholesale 39% 21% Construction and Trades 37% 34% Transport 17% 31% Finance and Insurance 40% 23% Professional and Business Services 40% 24% Retail and Hospitality 36% 30% More than usual Less than usual 20

21 Projected confidence in business prospects in 12 months time The majority of business owners surveyed are confident that their business prospects will be somewhat better by end 2010 than they are now. Compared with present business prospects, there is even more confidence and less concern about business prospects 12 months from now While 51% of business owners surveyed are confident about their business prospects at the present time, 60% are confident about their business prospects in 12 months time, which is 9% higher than recorded in the July 2009 survey. (See Figure 5) Medium business owners are extremely confident about business prospects by end 2010 In July 2009, owners of medium businesses were the most confident about their future prospects, with 64% indicating they are quite or very confident about their business prospects in This confidence level has risen to 78%, with only 4% reporting concern about their business prospects in 12 months time. (See Figure 5.1) Business owners with a business website most confident about next year Business owners who have a business website are more confident (69%) about their business prospects in twelve months time, than business owners who do not have a business website (55%). Confidence in future business prospects varies only slightly by State The renewed confidence in business prospects in 12 months time is evident across all States, with business owners in Victoria being slightly more confident (and less concerned) than business owners in other States. Confidence has recovered best from its July 2009 levels in New South Wales and in Victoria. (See Figure 5.2) Business owners in the Finance and Insurance, and Professional and Business Services industries most confident, business owners in Construction, Trades and Transport, and Agriculture, Forestry and Fishing industries least confident 73% of busines owners in the Finance and Insurance industries, and 72% of business owners in the Professional and Business Services industries are confident in their business prospects in 12 months time. Only 49% of business owners in the Construction, Trades and Transport industries (and only 48% of Agriculture, Forestry and Fishing business owners when analysed separately) are confident in their business prospects at the end of While business owners in most industries are 9% 11% more confident about end 2010 prospects than they were in July 2009, business owners in the Retail and Hospitality industries are only 1% more confident than they were in July (See Figure 5.3) Base: Business owners and directors (n = 1,165) Q. Thinking about how your business will be in 12 months time, how confident or concerned are you about your business prospects in 12 months time? 21

22 Figure 5: Business owner confidence in how their business prospects will be in 12 months time: (% of n = 1,165) 14% 4% 13% Very confident Quite confident Neither Quite concerned Very concerned 21% 47% Figure 5.1: Business owner confidence in how their business prospects will be in 12 months time: By Number of Employees (% of n=1,165) ALL (0 199) 60% SOLE (0) 58% MICRO (1 4) 60% SMALL (5 19) 60% MEDIUM (20 199) 78% Quite/Very Confident 22

23 Figure 5.2: Confidence in how their business prospects will be in 12 months time: by State (% of n = 1,165) Nov09 July 09 AUS 47% 13% 60% (+9) 51% NSW 43% 15% 58% (+12) 46% VIC 53% 10% 63% (+11) 52% QLD 47% 12% 59% (+7) 52% SA 45% 14% 59% (+5) 54% WA 49% 11% 60% (+1) 59% Quite Confident Very Confident Figure 5.3 Confidence in how their business prospects will be in 12 months time: by Industry (% of n = 1,165) Nov 09 July 09 Agriculture, Manufacturing, Wholesale 44% 12% 56% 46% Construction, Trades, Transport 39% 10% 49% 40% Finance and Insurance 55% 18% 73% 62% Property, Business and Professional Services 56% 16% 72% 61% Retail, Wholesale and Hospitality 41% 9% 50% 48% Quite Confident Very Confident 23

24 The difficulty or ease business owners have with certain business tasks Business owners surveyed currently have most difficulty with marketing to get new customers or new business; getting funding or finance to grow their business; getting affordable and reliable business advice; and managing the cash flow of their business. Marketing to get new customers or new business is overall the most difficult of the 16 nominated business tasks 24% of all the business owners surveyed find marketing to get new customers or new business quite difficult, and 5% find it very difficult for a total of 29% who find this business task difficult. (See Figure 6) Business owners in the Agriculture, Forestry and Fishing industry (32%) find this task more difficult than other industry business owners, as do owners of businesses established for 2 5 years (30%). There are no other significant differences between States, Industries, Business Size or Revenues. Getting funding or finance to grow the business attracts the highest very difficult score 10% of all business owners surveyed find the task of Getting funding or finance to grow the business very difficult and a further 17% find this task quite difficult, making this, at 27%, the second most difficult of the sixteen tasks measured in this survey. (See Figure 6) This could be related to a possible shortage of business finance funding following the Global Financial Crisis. This task is particularly difficult at the moment for owners of medium businesses (36%) and business owners in the Retail and Hospitality industries (39%). Getting affordable and reliable business advice is proving difficult for many business owners 6% of business owners find Getting affordable and reliable business advice very difficult and 21% find it quite difficult. Overall, at 27%, this task is reported as being as difficult as finding funding for their businesses. (See Figure 6) Female business owners (31%) and owners of small businesses with 5 19 employees (31%) find this task difficult, as do owners of businesses in Western Australia (34%) and Queensland (32%), owners of businesses who buy goods and stock online (34%), owners of businesses established less than 5 years (32%), and owners of businesses in the Retail and Hospitality industries (34%). Female business owners (31%) find this task more difficult than male business owners (24%). Managing the cash flow of the business is the fourth most difficult of these business tasks Managing the cash flow of the business is very difficult for 5% of business owners surveyed, and quite difficult for 19% of these business owners. (See Figure 6) It is more difficult for business owners in Western Australia (30%), owners of micro businesses (29%), businesses established for 2 5 years (30%) and business owners in the Agriculture, Forestry and Fishing industry (34%). Approximately one fifth of business owners also find the following difficult: Finding the best suppliers at the right price ; Paying tax due on their BAS ; Attracting new and skillful staff ; and Paying PAYG tax. (See Figure 6) Base: Business owners and directors (n = 1,165) Q. Please indicate how difficult or easy you personally find the flowing tasks in your business. (Please select one answer only for each statement) 24

25 Figure 6: Difficulties had with sixteen nominated business tasks (% of n = 1,165) Nov 09 Total Difficulty Marketing to get new customers or new business 24% 5% 29% Getting funding or finance to grow the business 17% 10% 27% Getting affordable & reliable business advice 21% 6% 27% Managing the cash flow of the business 19% 5% 24% Finding the best suppliers at the right price 19% 4% 23% Paying tax due on BAS 14% 6% 20% Attracting new & skillful staff 13% 6% 19% Paying PAYG tax 14% 5% 19% Doing monthly accounts including tax 15% 4% 19% Keeping business books up to date 14% 4% 18% Preparing quarterly BAS 13% 3% 16% Networking with similar businesses 13% 3% 16% Finding information relevant to your business 13% 3% 16% ecommerce or emarketing on your website 11% 3% 14% Managing your business website 9% 2% 11% Managing existing staff performance 8% 2% 9% 25

26 Present satisfaction with Federal Government s support of business in Australia Dissatisfaction with the Federal Government s support of and contribution to businesses has declined. The majority of business owners were dissatisfied in 2008, but the minority of business owners are dissatisfied now Dissatisfaction with the Federal Government s support for Australian businesses has decreased steadily over the last year, from 56% of business owners in September 2008 to 39% in July 2009, to 31% in November Nevertheless, satisfaction with the Federal Government s support of business in Australia at this time (29%) is still less than dissatisfaction with the Federal Government s support of business. (See Figure 7) Owners of medium businesses, and owners aged under 40 are more satisfied than dissatisfied 58% of owners of medium businesses are satisfied, with only 11% dissatisfied. (See Figure 7.1) In contrast, only 19% of small business owners are satisfied, while a significant 45% are dissatisfied. 35% of business owners aged years are satisfied, while 25% are dissatisfied. In all States, except South Australia and Victoria, business owners are more dissatisfied with the Federal Government s support than they are satisfied, and they are most dissatisfied in Queensland In South Australia, 29% of business owners surveyed are satisfied and 27% are dissatisfied with the Federal Goivernment s support, while in Victoria 29% are satisfied and 29% are dissatisfied. (See Figure 7.2) Queensland business owners (39%) continue to be the most dissatisfied. Rural business owners (37%) are considerably more dissatisfied than Capital City business owners (27%). Owners of businesses in the Retail and Hospitality industries and longer established businesses are dissatisfied with the support for business given by the Federal Government 45% of business owners in the Retail and Hospitality industries are dissatisfied with the Federal Government s support (similar to July 2009), which contrasts with only 29% of business owners in the Finance and Insurance industries who are dissatisfied. (The latter remain the most satisfied industry segment, with 37% satisfied.) Furthermore, 40% of owners of businesses established for 10 years or more are dissatisfied with the Federal Government s support. (See Figure 7.3) Base: Business owners and directors (n = 1,165) Q. How satisfied are you with the Federal Government s level of support for businesses like yours at this time? (Previous to July 2009: Q. How would you rate the Federal Government s current performance in contributing to the development of small business in Australia?) 26

27 Figure 7: Dissatisfaction and Satisfaction with Federal Government s support of business in Australia (% of n=1,165) 2% Nov 09 Jul 09 Mar 09 Quite/Very Satisfied Neither Satisfied Nor Dissatisfied Quite/Very Dissatisfied Don't know 31% 38% 29% Satisfied 29% 21% 27% Neither 38% 37% 27% Dissatisfied 31% 39% 42% Don t Know 2% 3% 4% Figure 7.1: Satisfaction and dissatisfaction with Federal Government s support of business in Australia: by Business Size/Number of Employees (% of n=1,165) Dissatisfied Nov 09 Jul 09 ALL (0 199) 29% 31% 31% 39% SOLE (0) 30% 27% 27% 39% MICRO (1 4) 23% 41% 41% 44% SMALL (5 19) 19% 45% 45% 38% MEDIUM (20 199) 58% 11% 11% 22% Satisfied Dissatisfied 27

28 Figure 7.2: Satisfaction and dissatisfaction with Federal Government s support of business: by State (% of n = 1,165) Dissatisfied Nov09 Jul 09 Mar 09 Dec 08 AUS 29% 31% 31% 39% 42% 47% NSW 27% 32% 32% 40% 47% 47% VIC 29% 29% 29% 36% 38% 49% QLD 29% 39% 39% 43% 44% 44% SA 29% 27% 27% 40% 49% 52% WA 28% 29% 29% 42% 33% 45% Satisfied Dissatisfied Figure 7.3: Satisfaction and dissatisfaction with the Federal Government s support of business: by Industry (% of n = 1,000) Dissatisfied Nov 09 Jul 09 Mar 09 Dec 08 Agriculture, Manufacturing and Wholesale 21% 27% 27% 44% 51% 54% Construction, Trades and Transport 29% 31% 31% 39% 37% 48% Finance and Insurance 37% 29% 29% 38% 42% 53% Professional and Business Services 31% 32% 32% 39% 42% 44% Retail and Hospitality 17% 45% 45% 45% 43% 51% Satisfied Dissatisfied 28

29 Present dissatisfaction with their State Government s support of business Business owners dissatisfaction with their State Government s support of and contribution to business remains high in November 2009, but has fallen since September Business owner dissatisfaction with State Government still greater than dissatisfaction with Federal Government s efforts Business owner dissatisfaction with their State Government s support for businesses like theirs has decreased steadily over the last year, from 61% in September 2008 to 46% in July 2009 and 43% in November (See Figure 8.2) Although 29% of business owners are now satisfied with the Federal Government s support of business, only 19% of business owners are now satisfied with their State Government s contribution to and support of business. (See Figure 8) Owners of medium businesses remain the only business owners presently more satisfied than dissatisfied Currently only 25% of owners of medium businesses are dissatisfied with their State Government s contribution to business, whereas 55% are satisfied with their State Government s support (a significant increase on the 33% satisfied in July 2009). By comparison, 38% of sole traders are dissatisfied and only 19% of sole traders are satisfied; 52% of micro business owners are dissatisfied and only 15% are satisfied; and 56% of small business owners are dissatisfied (+7% more than in July 2009) and only 15% are satisfied with their State Government s support of business in Australia. (See Figure 8.1) Business owners in South Australia are now the most dissatisfied with their State Government Business owners in New South Wales (50%) are now second most dissatisfied with their State Government s support for business, behind business owners in South Australia (53%). While dissatisfaction has decreased the most in New South Wales in the last year, the least dissatisfied (33% and 34%) and somewhat satisfied (22% and 22%) business owners are respectively in Victoria and Western Australia. (See Figure 8.2) Business owners in the Agriculture, Forestry and Fishing, and Retail and Hospitality industries are the most dissatisfied with their State Government 55% of business owners in the Agriculture industry (on their own, excluding Manufacturing and Wholesale business owners) and 53% of business owners in the Retail and Hospitality industries remain dissatisfied with their State Government. Satisfaction is lowest (13%) amongst business owners in the Retail and Hospitality industries. Start up business owners (26%) are far more satisfied with their State Government than are owners of maturing businesses (11%) and owners of more mature businesses (14%). (See Figure 8.3) Rural business owners are the most dissatisfied and least satisfied with their State Government 51% of rural business owners are dissatisfied with their State Government s support for businesses like theirs, with only 15% satisfied, which compares with 43% of Metro City business owners who are dissatisfied and 18% who are satisfied, and 43% of Suburban and Town business owners who are dissatisfied and 18% who are satisfied. Base: Business owners and directors (n = 1,165) Q. How satisfied are you with your State Government s level of support for businesses like yours at this time? (Previously: Q. How would you rate your State Government s current performance in contributing to the development of small business in Australia?) 29

30 Figure 8: Satisfaction with their State Government s support for business (% of n = 1,165) Nov 09 Jul 09 Mar 09 3% Satisfied 19% 14% 10% Quite/Very Satisfied 19% Neither 35% 36% 25% Neither Satisfied Nor Dissatisfied Quite/Very Dissatisfied Don't know 43% 35% Dissatisfied 43% 46% 54% Don t Know 3% 4% 11% Figure 8.1: Satisfaction and dissatisfaction with their State Government s support of business in Australia: by Business Size/Number of Employees (% of n=1,165) Dissatisfied Nov 09 Jul 09 ALL (0 199) 19% 43% 43% 46% SOLE (0) 19% 38% 38% 45% MICRO (1 4) 15% 52% 52% 51% SMALL (5 19) 15% 56% 56% 49% MEDIUM (20 199) 55% 25% 25% 29% Satisfied Dissatisfied 30

31 Figure 8.2 Satisfaction and dissatisfaction with State Government s support for business: by State (% of n = 1,165) Dissatisfied Nov 09 Jul 09 Mar 09 Dec 08 AUS 19% 43% 43% 46% 54% 59% NSW 16% 50% 50% 52% 69% 76% VIC 22% 33% 33% 40% 47% 56% QLD 18% 47% 47% 47% 49% 50% SA 19% 53% 53% 48% 65% 58% WA 22% 34% 34% 45% 37% 50% Satisfied Dissatisfied Figure 8.3 Satisfaction and dissatisfaction with the State Government s support for business: by Industry (% of n = 1,165) Dissatisfied Nov 09 Jul 09 Mar 09 Dec 08 Agriculture, Manufacturing and Wholesale 25% 42% 42% 56% 67% 65% Construction, Trades and Transport 17% 42% 42% 46% 50% 57% Finance and Insurance 21% 41% 41% 47% 56% 61% Professional and Business Services 16% 45% 45% 44% 54% 57% Retail and Hospitality 13% 53% 53% 51% 54% 64% Satisfied Dissatisfied 31

32 Sources of information about running their business Mind Your Own Business. Smarter. Majority of business owners surveyed source information to help them run their business from their accountant/bookkeeper. Accountants/Bookkeepers are the primary source for those who want information about running their business Amongst the 85% of business owners surveyed who will seek information (some from multiple sources) about running their business, 66% are likely to ask their Accountant or Bookkeeper for this information, 32% are likely to source such information from the ATO, and 27% are likely to seek this information from a business associate. (See Figure 9) Owners of businesses with a professional website far more likely to seek business information from online sources and business associates Business owners whose business has a website are twice as likely (26%) to seek online information on how to run their business than are those owners who do not have a business website (13%). The former (36%) are also far more likely to seek this information from business associates than are the latter (23%). Owners of start up businesses (26%) and businesses in the Professional and Business Services industries (26%) are also more likely users of online business information. Business owners in the Finance and Insurance industries most likely to learn about running a business from business associates The more likely users of business associates to learn more about how to run their business are business owners in the Finance and Insurance industries (41%), with a website (36%), in the Professional and Business Services industries (32%) and in less mature businesses established for 2 5 years (32%). Base: Business owners and directors (n = 1,165) Q. Who do you ask for information about running your business? 32

33 Figure 9: Sources of Information on running your business: (% of n = 1,165) Accountant/Bookkeeper 66% ATO 32% Business Associate 27% Online Bus Info Source 17% Bank 14% Other Govt Dept 7% Chamber of Commerce 4% Austrade 3% Software Provider 3% Don't ask for/seek 15% 33

34 The time it is taking businesses to get paid by customers or clients The majority of business owners are still being paid in the same time as they were six months ago. Some business owners are waiting longer to get paid than they were six months ago, and only a few business owners are getting paid faster than they were paid six months ago 60% of business owners surveyed report they are getting paid in about the same time as they were paid six months ago. 29% indicate it is taking a little or a lot more time, and 9% are getting paid a liitle or a lot faster than they were six months ago. (See Figure 10) Owners of medium businesses are waiting longer to get paid 40% of medium business owners are waiting longer to get paid than they were six months ago, whereas only 25% of sole traders are waiting longer. Business owners in Victoria are waiting less time to get paid 24% of business owners in Victoria say they are taking longer to get paid than six months ago, compared with 34% of business owners in New South Wales and 33% of business owners in Western Australia, where it is taking a longer time for more business owners to get paid. Business owners in the Manufacturing and Wholesale industries are waiting longer to get paid, and business owners in the Agriculture industry have experienced the least change 40% of business owners in the Manufacturing and Wholesale industries are waiting longer to get paid than they were six months ago, whereas 69% of business owners in the Agriculture industry say that payment times have not changed. Base: Business owners and directors (n = 1,165) Q. Compared with 6 months ago is it taking more time to get paid by your customers or clients, less time to get paid, or is it taking about the same amount of time? (Please select one only) Figure 10: Time taken to get paid compared with 6 months ago: Total Sample (% of n= 1,165) 7% 2% 7% 22% A lot less A little less About the same A little more A lot more Don't know 60% 34

35 Business loans and finance, and meeting repayment obligations Less than a third (29%) of business owners surveyed are currently funded by business loans or finance. A minority of business owners who have business loans or finance will find it difficult to meet their business loan or finance repayment obligations Of the 29% of business owners who say that they have business loans or finance, 27% indicate they will find it quite (23%) or very (4%) difficult to meet their repayment obligations over the next 12 months. (See Figure 11.1) Those business owners who are more likely to find it difficult to meet their repayment obligations are in the Agriculture industry (39%), or businesses that are more than 5 years old (32%). Base: Business owners and directors (n = 1,165) Q Is your business currently funded by loans/borrowings/overdraft/business finance? (Yes or No) (If Yes) Q: How difficult or easy do you think it will be for you and your business to meet your loan or business finance repayment obligations over the next 12 months? (Please select one only) Figure 11: Currently funded by loans, borrowings, an overdraft or business finance: (% of n=1,165) 29% 71% Yes No Figure 11.1: Ease or difficulty of meeting business loan or finance repayment obligations in the next 12 months: Those with Business Finance (% of n= 339) 10% 1% 4% 23% Very difficult Quite difficult 25% Neither difficult nor easy Quite easy Very easy Don't know 37% 35

36 Employment intentions and numbers in next 12 months Mind Your Own Business. Smarter. Very few business owners intend to reduce their number of employees in the next twelve months. Some business owners intend to increase their number of employees in 2010 Only 4% of business owners surveyed intend to reduce their number of employees in the next 12 months, whereas 17% intend to increase the number of employees. 34% of all the business owners surveyed are sole traders with no hiring intentions. A further 34% say that they will neither hire nor fire over the next year, and 12% are unsure at present. (See Figure 12) Owners of medium and small businesses are much more likely to add employees in the next year 41% of medium business owners and 37% of small business owners are looking to increase their employee count over the next year, and a slight majority (51%) of these businesses is likely to add 3 5 employees over the next 12 months (whereas in March 2009 the majority only intended to add 1 2 employees over the next 12 months). Start up businesses are the most likely to hire more staff members during % of start up business owners are expecting to hire more employees in the next year, compared with only 10% of owners of mature businesses who expect to do so. Business owners in the Manufacturing and Wholesale industries are more likely to hire While 17% of business owners surveyed intend to add employees in the next year, 26% of business owners in the Manufacturing and Wholesale industries intend to add employees in In March 2009, Manufacturing, Construction, Trades and Hospitality business owners were the most likely to hire new employees. Employment prospects are better in Queensland Of the 17% of business owners in Queensland intending to hire more staff members in the next year, 39% say that they will add five or six new employees to their team. Base: Business owners and directors (n = 1,165) Q Do you intend to hire more employees or to reduce employees in the next 12 months? (If Yes) Q: How many employees do you intend to hire in the next 12 months? (If Yes) Q By how many employees do you intend to reduce in the next 12 months? Figure 12: Employees hiring or reduction intentions in the next 12 months: Total Sample (% of n=1,165) 12% 17% 4% Hire more Reduce Likely to Hire More People Nov 09 17% Mar 09 12% 34% 34% Neither hire nor reduce Sole Trader, will not hire Don't know Dec 08 14% Sep 08 17% Jun 08 19% 36

37 The hours that business owners work to run their business Over a fifth of business owners surveyed work over 51 hours a week. The majority of business owners work for between 31 and 50 hours in a normal working week 25% of all business owners in this survey work for between hours in a normal week, and 27% work for between hours, while a further 22% work for 51 or more hours a week (compared with 33% who did so in June 2008). (See Figure 13) Business owners in the Agriculture, Forestry, Fishing and Rural industries work the most hours in a normal week 68% of business owners in the Agriculture, Forestry and Fishing industries work for 41 or more hours a week, 44% for more than 51 hours a week, and 17% for 70 or more hours in their normal working week. 58% of business owners who work in a rural location work more than 41 hours a week. Small and micro business owners work longer hours, with sole traders closer to work/life balance 59% of small business owners surveyed work 41 or more hours a week, compared with 56% of micro business owners who do the same. Medium business owners work fewer hours (53% work 41 or more hours a week) and sole traders (43% work 41 or more hours a week) are closer than other business owners to achieving a work/life balance. Base: Business owners and directors (n = 1,165) Q Thinking of the most recent typical work week you experienced (i.e. no holiday leave, public holidays, sick leave, etc), how many hours did you work to run your business that week? Figure 13: Number of hours worked to run their business in a normal working week: Total Sample (% of n=1,165) Hours worked in business Nov 09 Dec 08 Jun 08 8% 2%1% 5% More than 70 hours 5% 6% 8% 17% hours 17% 18% 25% 15% hours 27% 22% 22% hours 25% 17% 13% hours 15% 17% 12% 25% 27% hours 0 10 hours 8% 11% 9% 2% 8% 9% Don't know 1% 1% 2% 37

38 Changes in business activities in the last six months Mind Your Own Business. Smarter. A quarter of business owners surveyed have increased the variety of their products and services in recent months. The variety of products and services offered, and activity in new markets have increased more than other business activities 25% of all business owners surveyed have increased the variety of the products and services they offer in recent months, and only 8% have decreased or lessened that activity. While 24% have increased their activity in new markets, 18% have decreased that activity. All other activities have decreased more than they have increased. Marketing and advertising spending (19% decrease) and sales or promotions (18%) have decreased the most. (See Figure 14) Businesses with a website are the most active 39% of the businesses who have a website have increased the variety of the products and services that they offer in the last six months, compared with only 17% of those businesses who do not have a website. 37% of businesses with a website have conducted activity in new markets, compared with only 17% of those businesses without a website who have done so. 23% of businesses with a website have increased their marketing and advertising expenditure in the last six months, compared to only 8% of businesses without a website. 27% of businesses with a website have increased their sales or promotions in the last six months, compared with only 9% of businesses without a website. Base: Business owners and directors (n = 1,165) Q With regards to your company/business, how do you think each of the following have changed in the last 6 months? Figure 14: Changes in business activities in last 6 months: Total Sample (% of n=1,165) Staff numbers 5% 10% Research and development spending 9% 16% Staff training 9% 12% Marketing and advertising spending 13% 19% Sales or promotions 15% 18% Activity in new markets 24% 18% Variety of products and services offered 25% 8% Increases Decreases 38

39 The Federal Government s Business Tax Break Mind Your Own Business. Smarter. The majority of business owners surveyed are aware of the Federal Government s Business Tax Break 77% of the business owners surveyed report that they are aware of the Federal Government s Business Tax Break. (See Figure 15) Business owners in the Finance and Insurance (87%), and Transport (87%) industries seem to be the most aware, followed closely by South Australian business owners (86%) and micro business owners (84%). Owners of start up businesses (67%) appear to be less aware of the Business Tax Break. Almost half of the business owners surveyed have taken action or intend to take action on this tax break 28% of all business owners surveyed say they have acted upon and taken advantage of the Business Tax Break, and a further 18% say they intend to do so, while another 25% haven t taken advantage of it yet, but are considering whether or not to do so. The remaining 29% say that they have not taken action, and are unlikely to do so. (See Figure 15.1) Over half of the business owners surveyed think the tax break could be helpful to businesses like theirs Once described to them, 53% of business owners feel the Federal Government s Business Tax Break has been, or could be, quite or very helpful to businesses like theirs, while only 8% feel it has been, or could be, quite or very unhelpful. (See Figure 15.2) Base: Business owners and directors (n = 1,165) Q: Before today, have you previously heard or read about, or received any correspondence about, the Federal Government's Business Tax Break? Q: To date, have you taken advantage of the Federal Government's Business Tax Break by buying any new tangible, depreciating assets for the business, like vehicle, computers, tools or furniture, or investing in substantial improvements or additions to existing assets? Q: Under the Federal Government s Business Tax Break, you can get a 50% tax break if your business has an annual turnover under $2 million, and a 30% or 10% tax break if your business has an annual turnover of $2 million or more, by buying any new tangible, depreciating assets for the business, like vehicles, computers, tools or furniture, or investing in substantial improvements or additions to existing assets. How helpful is the Business Tax Break or could this tax be to businesses like yours at the moment? Figure 15: Awareness of Federal Government s Business Tax Break: Total Sample (% of n=1,165) 23% 77% YES NO 39

40 Figure 15.1: Whether they have taken advantage of/acted upon the Federal Government s Business Tax Break: Total Sample (% of n=1,165) Yes we have done so 28% Not yet, planning to Not yet, but considering 18% 25% No, not likely to Not yet, but considering Not yet, planning to Yes we have done so No, not likely to 29% Figure 15.2: Whether they believe that the Federal Government s Business Tax Break is or could be helpful to businesses like theirs: Total Sample (% of n=1,165) Very helpful 17% Quite helpful 36% Neither 29% Quite unhelpful 4% Very unhelpful 4% Not sure 10% 40

41 Appendix 1 Perceptions of business prospects and business revenue increases over the next 12 months Figure 16: Businesses confidence in business prospects and expectations of business revenue increases over the next 12 months Business revenue will increase next 12 months Confidence in business prospects next 12 months 10 0 June 2008 (n=1693) September 2008 (n=1462) December 2008 (n=1385) March 2009 (n=1503) July 2009 (n=1000) November 2009 (n=1165) 41

42 Appendix 2 Perceptions of Federal Government Performance Mind Your Own Business. Smarter. Figure 17: Businesses perceptions of the Federal Government s performance in contributing to the development of and supporting businesses in Australia Dissatisfied with Federal Government's contribution to & support of business 10 0 June 2008 (n=1693) September 2008 (n=1462) December 2008 (n=1385) March 2009 (n=1503) July 2009 (n=1000) November 2009 (n=