26 November 2018: The September Quarter 2018 Sensis Business Index, set to be released Tuesday 27 November, has revealed Victorian small and medium businesses (SMBs) are struggling to access finance more than any other state or territory in Australia.
The report, which measures the SMB activity, expectations and confidence over a three-month period, found that when it came to accessing finance, Victorian SMBs were sitting six points below the national average to record a net balance of -23.
Sensis Chief Executive Officer, John Allan, feels the Banking Royal Commission could be impacting these results.
"This is a trend we have seen across the board with the national average score for the ability to access finance dropping a massive 14 points from what was seen in the last report. In the midst of the Banking Royal Commission, these results support fears expressed by small and medium business owners about the inability to access finance. With accessibility sitting at a five-year low, this could result in negative implications for new and existing SMBs – particularly in Victoria."
Confidence levels among Victorian SMBs fell six points to meet the national average of +42, with lower sales dominating the concerns expressed, as well as unfavourable government policies. Melbourne SMBs were once again more confident than those in regional Victoria, recording balances of +46 (mirroring national average) and +34 respectively.
Despite the fall in confidence, close to three in five (57%) SMBs in Victoria remained positive in their business prospects for the next 12-months.
"While we witnessed a decline in wages, prices, profitability and employment last quarter, sales indicators were positive. Expectations for the current quarter present a promising outlook, exceeding the national average for sales, wages and profitability," said Allan.
"In addition to this, close to one in four (23%) SMBs in Victoria are still confident the economy is on the rise and, although three points below the national average, it's clear this is driving increased confidence."
When it came to opinions on the Victorian State Government, SMBs were less negative than seen in the March Quarter 2018 report, lifting from -10 to -3.
Infrastructure development, showing interest in small businesses and creating positive conditions were among the top reasons expressed by those in support of the State Government, while taking too much notice of the unions being the main criticism of SMBs.
Victorian SMBs were more confident when looking at the Federal Government however, growing five points to a positive balance of +3.
"Despite Australia having five Prime Ministers in just over five years, the majority of small and medium businesses seem to have become resilient to leadership changes, evident through the increased confidence in Federal Government, while the State Government remains the subject of critique."
