Small businesses: Glass half full
Small business optimism about the country's economic outlook hit a 13 - year high according to the Sensis Business survey released today, but confidence is outstripping improvements in actual performance.
The report, which surveyed 1,800 small and medium businesses across Australia found expectations of the future economy grew strongly during the quarter, as did business confidence and performance.
"The good news is that we have seen strong improvement in results across most business indicators this quarter, making it two consecutive quarters of growth," said report author Christena Singh.
Small business optimism about the country's economic outlook hit a 13 - year high according to the Sensis Business survey released today, but confidence is outstripping improvements in actual performance.
The report, which surveyed 1,800 small and medium businesses across Australia found expectations of the future economy grew strongly during the quarter, as did business confidence and performance.
"The good news is that we have seen strong improvement in results across most business indicators this quarter, making it two consecutive quarters of growth," said report author Christena Singh.
"Last quarter, we saw tentative signs that the landscape was improving for Australia's small businesses, after record lows experienced in February 2009."
However, she added: "...improvements in confidence and expectations have been stronger than the improvements in actual performance, so there are still risks to the sustainability of the current economic recovery".
The report indicates that there has been a significant reduction in the proportion of small businesses currently impacted by the economic slowdown. However, businesses have continued to shed staff during the quarter and at a stronger rate than the previous quarter.