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Local Businesses

Local Businesses

17 February 2015

47% Business Owners Financed Business Using Personal Credit

Small business survey still show a tough outlook particularly for established businesses while new businesses are seeing an opportunity to crave out a new position in a tight economic market.

Australian small businesses remain the least optimistic within the Asia-Pacific. A recent survey indicated that 75% of those surveyed say they ran down their cash position in the past year because they had trouble obtaining finance.

The CPA Australia found in 2013 that of the 500 Australian small business operators with less than 20 employees, 60% have a low expectation of their business growing in the coming year. The results paint a grim picture and reflects continuing uncertainty about the domestic and global outlook.

Small businesses are finding it hard to secure bank funding.

Notably, 75% of small businesses ran down their cash position because they couldn’t get bank finance with 47% of Australian business operators using personal credit cards to finance business activities over the past year.

The one positive finding was that small businesses seem to be improving their business management practices in response to current economic conditions.

In general, younger businesses and younger respondents seem more positive about economic growth prospects for the coming year. Businesses from the finance and insurance, administrative and support services and agriculture, fishing and forestry industries have the most positive outlook on the economy for 2015.

Unfortunately, manufacturing seems to be a value adding industry that Australia is losing rapidly where as other countries are investing and growing.

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