Deloitte Private CBC SME Survey Summary of key findings

Transcription

1 Summary of key findings 22nd November, 2016

2 Contents Executive summary 1 About the Deloitte Private SME survey 2 Contacts 3 Growing against the odds 4 Barriers to growth 5 Optimism for the future 6 Local success stories 7 About Deloitte Private 8

3 Executive summary Optimism in the region Barriers to growth Rising costs The second Deloitte SME survey highlights a sense of confidence and optimism amongst local businesses with a 77% of businesses being optimistic about the prospects for their own businesses as well as the broader Canberra business environment. Looking further afield, they were less optimistic about the broader Australian environment. 90% of the respondents plan to grow and further develop their businesses with 38% of them planning to grow their sales nationally while 27% intend to expand into international markets to achieve growth. The respondents cited the overall economic environment as a concern in respect of their growth ambitions. The ambitions to grow their business appear to be hampered by a series of factors cited as barriers to growth. 58% of the respondents believe that the employment regulations prevent them from growing their business while 63% cited the shortage of skilled labour in the region as a major barrier to growth. Other factors cited included taxation, inadequate space and lack of physical and financial capital. In the past 12 months, 53% of the businesses have seen an increase in their operating costs and 51% expect costs to increase further over the next 12 months. The overwhelming majority of businesses (94%) are committed to increasing their efficiency into the future and 77% intend to diversify their products/ services in the future. 38% plan to grow their sales 77% are optimistic about the prospects for their own business 90% plan to grow and further develop their businesses 27% intend to expand into international markets Optimism in the region 58% believe that the employment regulations prevent them from growing their business 63% cited the shortage of skilled labour in the region Barriers to growth Rising costs 53% have seen an increase in their operating costs 94% are committed to increasing their efficiency 77% intend to diversify their products/services in the future 1

4 About the Deloitte Private SME survey This survey is the second in the series of our SME surveys, conducted in collaboration with the Canberra Business Chamber (CBC). This survey focusses on Small and Medium Enterprises (SMEs) operating in Canberra and the surrounding region. With its focus solely on the Canberra region, the survey aims to highlight the current state of local businesses along with the challenges and issues being faced by them. How many staff does your business employ? Non employing 200+ employees 1-4 employees employees employees The survey respondents predominantly comprised members of the CBC and their kindred organisations and covered a wide cross section of the business community employees 5-19 employees 2

5 Contacts Melissa Cabban Partner Tel: mcabban@deloitte.com.au Melissa has more than 20 years of experience in advising clients in relation to their tax and business affairs and works with some of the leading Canberra groups. Amer Qureshi Director Tel: amequreshi@deloitte.com.au Amer has more than 25 years of professional experience gained in Canberra and Internationally. Amer has been an owner of professional services firm for more than 20 years and has an exceptional track record of client service and delivery. He is an internationally published author, trainer and workshop facilitator and has held C level positions internationally. Peter Roberson Principal Tel: proberson@deloitte.com.au Peter has more than 25 years experience of experience in tax and business services in the Canberra region. Peter s personalised approach to helping clients is a key reason for his loyal client base of local businesses. 3

6 Growing against the odds New markets Despite the willingness to grow, only 47% planned on expanding sales nationally and 33% plan to expand sales globally. Growing into the future 90% of small business want to grow their business into something more in the future Do you want to grow your business? In the near future, how will your business expand? Confidence for the future 81% of respondents have similar or increased optimism for their business in the next 12 months. Impact of the economic environment Even with the large majority wanting to grow their business, 70% agreed that economic conditions are limiting their growth to some extent. Compared to this time last year, how much more or less optimistic are you? Do the current economic conditions limit your growth? 4

7 Barriers to growth Employment regulations 58% of respondents believe that employment regulations acts as a barrier to growth Skilled labour shortages stunt growth 63% of respondents identified lack of skilled labour as one of the biggest barriers to growth. Costs on the rise for business 53% saw an increase in operating costs in the last 12 months 51% expect operating costs to increase in the next 12 months. Are employment regulations a barrier to growth? 58% 42% Does lack of skilled labour hinder growth? 63% 37% What changes have you seen in operating costs in the last 12 months and what do you expect for the next 12 months? 53% 51% 38% 36% 9% 13% Hindrance to growth Not at all Hindrance to growth Not at all A lot more About the A lot less same Last 12 months Next 12 months Rates, electricity, water increases killing businesses Quote from respondent Red tape is a killer Quote from respondent 5

8 Optimism for the future In the near future, what is your business likely to do? The future often means change and 77% of businesses plan to diversify their products or services. 94% of business are committed to increasing their efficiency into the future. How much more or less optimistic are you? The small business community shows a stronger optimism for their own business heading into the future. The optimism for other businesses in the Australian market has decreased in comparison to the previous survey. 66% 45% 49% 52% 47% 41% 40% 11% 27% 16% 32% 26% 19% To a large extent To a small extent Much more About the same Much less Diversity w/alt Continue w/efficiency Your business Broader Canberra Broader Australia 6

9 Local success stories Control & Electric Rivoland Tiles Capital Recruit First established in 1980, Control & Electric is a locally owned company that provides mechanical electrical solutions. They have been operating in Canberra for over 30 years, growing from 2 staff to today s workforce of over 40 employees. Control & Electric have also expanded their business across the Tasman to Christchurch, New Zealand. Since its inception in the 1980s, Rivoland Tiles has grown to become a household name in the Canberra region. They provide tile solutions for personal and commercial purposes from their showrooms in Queanbeyan and Mitchell. Capital Recruit is a young business that has operated in Canberra since After many years of working for major recruitment firms, the founders felt it was the right time to take the plunge into their own business. We were optimistic and confident in Canberra s future when we decided to start Capital Recruit. The investment we have made in building relationships and networks is now paying off The cyclical nature of the building industry presents a number of challenges. This is what led us to seek out international markets for our services. Peter Hart Managing Director Control & Electric The growth of the Canberra region has given us the opportunity to establish a really successful business. We are optimistic about Canberra s long term future, but realize that we must continue to improve and develop our own business. This will be our major focus over the next 12 months. Denis Guglielmin Managing Director Rivoland Tiles Doing business in Canberra is about relationships, adding value and delivering results. Canberra is small enough to enable us to build close relationships with our clients, yet large enough to offer us an opportunity to build a sizeable business. Confidence in our economy, positively impacts our small business. We remain confident about Canberra s future. A reduction in red tape and reform of business license fees for our sector is much needed. Sarah Rajic Director Capital Recruit 7

10 About Deloitte Private Success needs support. At Deloitte, we blend your unique skills and ambitions with our deep expertise and experience. We are committed to always offering the best possible service. We get what matters and we re there for you at every step in your journey. We're with you. We're Deloitte Private. Deloitte Private is a private business-focussed practice, powered by the depth of a global Big Four firm. Deloitte believes differentiating the needs of private businesses from the needs of large businesses assists our multi-disciplinary professionals recognise the opportunities and challenges unique to private businesses. We anticipate the needs of private businesses and focus on delivering innovative and effective solutions, while maintaining high quality service levels. We believe our clients deserve the assurance and confidence of a large accounting firm, but with the strong advisor relationship, tailored solutions and affordability of a smaller firm. This where we come in. Our clients told us that they wanted to spend less time on day-to-day transactions, paying staff and suppliers, and scrambling to balance the books, and we listened. We re dedicated to growing our clients businesses. We have the expertise and technology solution that allows our clients the time they need to focus on the bigger picture. Our vision is to redefine the way we work with our clients through cloud-based accounting solutions that put us both on the same page. We want our clients to focus on what really matters, growing their business. We are refocusing the lens and giving our clients more time to focus on what helped them succeed in the first place. So we created a simple solution to a complex problem, Deloitte Private Connect. Our local knowledge, coupled with access to our global networks, uniquely positions us to best service the Australian private market. 8

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