SMEs confident of growth

A RECENT St George survey has revealed small to medium enterprises (SMEs) are expecting 6.8 per cent growth this financial year, but with realistic expectations the recovery will be slow.

St George corporate and business bank general manager Greg Kenny, says the survey shows resilience and determination by SMEs to remain competitive for when the eventual upturn comes.

“The top strategies being adopted by SMEs include focusing on core customers, focusing on the fundamentals of their business, cost cutting, business development and increasing their product or service offering,” says Kenny.

Out of 1000 owners and managers surveyed across Australia, 44 per cent plan to increase their market share and 25 per cent plan to hire more staff, but only 7 per cent already have.

But two in three believe 09/10 will be worse than 08/09 and just 16 per cent expect profit to rebound at the end of 2009, but there is a degree of optimism.

“On average, SMEs are targeting growth of 6.8 per cent for the financial year ahead. Given historical average growth for SMEs is around 10 per cent, this provides a good indication they are still determined to achieve growth despite the economic downturn,” says Kenny.

“Another finding of this research is that whilst most SMEs are taking a very candid assessment of the future risks and challenges facing their businesses, only 1 per cent believe there is a high chance their business could fail.”

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Netflix NT drama series Territory to debut in October

Netflix NT drama series Territory to debut in October

Netflix is set to launch its next blockbuster Australian drama seri...

American Express to pay $8m fine over inappropriate targeting of co-branded David Jones credit cards

American Express to pay $8m fine over inappropriate targeting of co-branded David Jones credit cards

American Express Australia (Amex) has been ordered to pay an $8 mil...

Results from Juukan Gorge show 47,000 years of Aboriginal heritage destroyed in mining blast

Results from Juukan Gorge show 47,000 years of Aboriginal heritage destroyed in mining blast

Aboriginal and Torres Strait Islander readers are advised this arti...

From Michael Hill to Adore Beauty, retailers rise on positive sales results

From Michael Hill to Adore Beauty, retailers rise on positive sales results

A handful of retailers including jeweller Michael Hill Internationa...