Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
Business Monitor
MYOB Business Monitor May 2017 Page 1 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
MYOB BUSINESS MONITOR:
THE VOICE OF AUSTRALIAN BUSINESS OWNERS & MANAGERS
May 2017 report
Business Monitor
MYOB Business Monitor May 2017 Page 2 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
BUSINESS PERFORMANCE
One quarter of Australian business operators expected the
economy to improve over the next 12 months In the May 2017 Business Monitor survey on which this report is based, 25% of Australian small and medium business owners and managers (herein known as ‘operators’) expected the Australian economy to improve over the next 12 months. Almost two in five operators (39%) expected the economy to decline, while 33% expected the economy to remain about the same. The results remained statistically unchanged since October 2015. The most optimistic operators were:
• Operators who had experienced increased revenue in the preceding 12 months (38% expected an improvement)
• Importers (34%)
Business conditions remained steady although trend is
positive
Operators reported similar levels of revenue performance over the previous 12 months as the last survey, but the trend since October 2015 has shown improvement with those stating revenue had increased up from 22% then to 28% this wave. A similar proportion (27%) reported a decrease in annual revenue, while a further 43% said revenue had been steady and 3% were unsure. Operators more likely to report an increase in revenue over the last 12 months included:
• Rural operators (39%)
• Importers (38%) and exporters (37% - particularly those to North America – 55%)
• Operators with a social media site (39%) or website (35%)
• Start-ups (36%)
• Gen Y operators (34%)
7%
31%
33%
22%
3%3%
Decline significantly
Decline slightly
Remain the same
Improve slightly
Improve significantly
Don’t know
19%22% 22%
26% 26%
19% 20% 18% 18% 18%22% 21% 23% 22%
25% 27%
28%39% 39%
36% 34% 34%38% 38%
41% 39% 39%34%
31% 30% 30% 31% 30%
27%
JUL 09 NOV 09
MAR 10
OCT 10
MAR 11
SEPT 11
FEB 12 MAY 12
FEB 13 AUG 13
FEB 14 AUG 14
FEB 15 OCT 15
APR 16
NOV 16
MAY 17
Changes in revenue - previous 12 months
Revenue up Revenue down
Business Monitor
MYOB Business Monitor May 2017 Page 3 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Expected revenue over the next 12 months and sales in the pipeline for the next three months both trending upwards
While two in five operators (40%) expected their revenue to remain the same over the next 12 months, the proportion of operators expecting their revenue to increase was 35%. Again, the trend since October 2015 is positive with the proportion of operators expecting revenue to increase up from 28% to 35%. Just under one in five operators (19%) expected a decline in revenue over the next 12 months. This proportion has also declined significantly since October 2015. Manufacturing and wholesale businesses (51%), importers (51%) and exporters (43%), start-ups (50%), operators with a social media site (50%) or business website (48%) and franchisors (48%) were more likely to expect their revenue to increase over the next 12 months, as were Gen Y operators (44%) and cloud computing users (40%). In terms of the shorter term three-month pipeline, 40% of operators commented they had the same amount of sales/work in the pipeline for the June to August period. The proportion of operators stating they had more in their pipeline has continued to increase, with 41% having more in their pipeline in the next three months (up from 34% the same time last year). Fewer than one in five operators (18%) felt they had less in the pipeline compared to 24% the same time last year. Operators more likely to state they had more work/sales in their pipeline in the next three months included:
• Medium businesses (77%) • Operators whose revenue was up in the previous 12
months (68%)
• Franchisors (58%)
• Importers (57%) and exporters (52%)
• Operators with a social media site (53%) or business website (52%)
• Gen X (50%) and Gen Y operators (47%)
• Start-ups (50%)
• Victorian operators (47% compared to 33% of Queensland operators)
37%
46% 48%43% 41%
32% 30% 29% 30%25%
34% 32% 33% 28%31%
34% 35%
15% 12% 12% 14% 14%20%
24% 22%19%
22% 22%18%
22% 27%24%
21% 19%
JUL 09 NOV 09 MAR 10
OCT 10 MAR 11
SEPT 11 FEB 12 MAY 12 FEB 13 AUG 13 FEB 14 AUG 14 FEB 15 OCT 15 APR 16 NOV 16MAY 17
Expected changes in revenue - next 12 months
Revenue up Revenue down
37% 37%28%
33%29% 31%
29% 30% 28%33%
36% 36%38%
34%
39%41%
29%
21%26%
24%30%
28% 27%
28% 27% 21%23%
20% 19%
24%
19% 18%
NOV 09 MAR 10 OCT 10 MAR 11 SEPT 11 FEB 12 MAY 12 FEB 13 AUG 13 FEB 14 AUG 14 FEB 15 OCT 15 APR 16 NOV 16 MAY 17
Sales/work in the pipeline - next 3 months
Total more Total less
Business Monitor
MYOB Business Monitor May 2017 Page 4 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Expectations by location
% expecting Australian economy to improve in the next 12 months
% expecting increase in revenue in next 12 months
% reporting more in pipeline for next 3 months
Total AU 25% 35% 41%
New South Wales 24% 39% 44%
Victoria 26% 36% 47%
Queensland 27% 32% 33%
South Australia 16% 37% 34%
Western Australia 27% 27% 36%
Metro 27% 34% 41%
Regional/Suburban 23% 35% 41%
Rural 27% 39% 39%
Green = Significantly higher than total Red = Significantly lower than total
Expectations by industry type
Agribusiness
Business, prof. &
property services
Construction
& trades
Finance &
insurance
Manufacturing &
wholesale
Retail &
hospitality
Transport, postal &
warehousing
% expecting economy to improve in next 12 months
22% 27% 24% 32% 31% 22% 21%
% expecting increase in revenue in next 12 months
36% 34% 34% 33% 51% 41% 24%
% reporting more in pipeline for next 3 months
40% 38% 44% 44% 49% 45% 29%
Green = Significantly higher than total Red = Significantly lower than total
Business Monitor
MYOB Business Monitor May 2017 Page 5 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Investment intentions show emphasis on margins, product
proliferation, customer retention and online marketing
In this wave, there were four areas of business in which operators were most likely to increase their focus/investment in the next 12 months:
• Prices and margins on products/services sold (29%)
• Number or variety of products or services offered (28%)
• Customer retention (26%)
• The dollar value of online marketing and advertising (25%) Only one key change was noted from the previous wave – investing in IT systems and processes rose from 19% last wave to 23% this wave.
Key differences
Key differences were noted across several areas, including age and size of the business. As seen in the tables overleaf, Gen X and Gen Y operators, start-ups and establishing businesses, retail and hospitality and manufacturing and wholesale businesses were more likely to increase focus/investment in the next 12 months across a number of areas. Baby Boomers and established businesses were much less likely to be investing. In addition, small businesses were also much more likely to be investing in a number of these areas, particularly the sale of products online (41%), amount paid to employees (36%) and customer acquisition strategies (34%). Metropolitan based operators, operators with a website or social media site, operators whose revenue was up in the preceding 12 months, importers and exporters, franchisors and franchisees, cloud computing users and operators involved in the tourism industry were all much more likely to be increasing their investment across a range of issues.
12%
17%
18%
18%
20%
21%
23%
29%
22%
21%
27%
26%
26%
14%
19%
18%
20%
22%
21%
25%
25%
21%
23%
27%
26%
28%
12%
14%
18%
17%
19%
20%
23%
22%
22%
20%
24%
25%
24%
14%
18%
18%
20%
22%
19%
23%
24%
26%
22%
28%
28%
30%
15%
19%
20%
21%
22%
23%
24%
24%
24%
25%
26%
28%
29%
Number of full time employees
Number of part time or casualemployees
The $ value of offline marketing andadvertising
Working with business advisers toenhance your business
Sales of products/services offline
Investment in IT systems & processes
Amount you pay the employees
Focus on customer acquisitionstrategies
Sales of products/services online
The $ value of online marketing andadvertising
Focus on customer retention strategies
Number or variety of products orservices offered
Your prices and margins onproduct/services sold
Where businesses plan to increase investment
May 17 Nov 16 Apr 16 Oct 15 Feb 15
Business Monitor
MYOB Business Monitor May 2017 Page 6 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Planned increase in focus/investment by age of business and age of operator
Total Start ups
Establishing Maturing Established Gen Y Gen X Baby
Boomers Tradition-
lists
Prices/margin on products/
services 29% 35% 27% 30% 25% 31% 31% 27% 19%
No. or variety of products offered 28% 38% 31% 29% 16% 33% 36% 18% 13%
Customer retention strategies 26% 32% 32% 22% 16% 33% 29% 18% 11%
Value of online marketing 25% 31% 38% 17% 12% 31% 32% 13% 14%
Sale of products/services online 24% 34% 27% 14% 15% 25% 28% 19% 15%
Customer acquisition strategies 24% 30% 28% 26% 15% 30% 25% 20% 5%
Amount employees are paid 24% 23% 25% 23% 18% 29% 27% 17% 24%
Investment in IT
systems/processes 23% 27% 28% 19% 11% 32% 25% 14% 17%
Sale of products/services offline 22% 30% 29% 17% 12% 28% 25% 15% 14%
Working with business advisors 21% 26% 29% 19% 9% 26% 25% 14% 4%
Value of offline marketing 20% 21% 23% 18% 9% 26% 25% 11% 6%
No. of part time/casual staff 19% 21% 25% 13% 9% 28% 23% 8% 15%
No. of full time employees 15% 20% 18% 14% 3% 26% 18% 5% 2%
Green = Significantly higher than total Red = Significantly lower than total
Business Monitor
MYOB Business Monitor May 2017 Page 7 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Planned increase in focus/investment by industry type
Agribusiness
Business, prof.
& property
services
Construction &
trades
Finance &
insurance
Manufacturing &
wholesale
Retail &
hospitality
Transport, postal &
warehousing
Prices/margin on products/services 35% 22% 37% 20% 31% 39% 24%
No. or variety of products offered 29% 24% 23% 26% 42% 44% 20%
Customer retention strategies 27% 24% 25% 30% 27% 33% 17%
Value of online marketing 20% 25% 19% 32% 25% 32% 15%
Sale of products/services online
20% 19% 19% 22% 38% 40% 20%
Customer acquisition strategies 20% 26% 19% 26% 25% 32% 11%
Amount employees are paid
33% 20% 25% 23% 27% 31% 17%
Investment in IT systems/ processes 22% 20% 22% 28% 29% 20% 16%
Sale of products/services offline
22% 19% 24% 18% 27% 29% 15%
Working with business advisors 16% 23% 18% 20% 18% 23% 19%
Value of offline marketing
9% 19% 23% 20% 24% 23% 13%
No. of part time/casual staff 27% 21% 22% 10% 21% 23% 9%
No. of full time employees
27% 13% 17% 13% 20% 14% 8%
Green = Significantly higher than total Red = Significantly lower than total
Business Monitor
MYOB Business Monitor May 2017 Page 8 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
The cost of utilities, particularly for South Australian
operators, late payments and fuel prices were key pressures
this wave
When asked what elements of the business environment operators expected to cause an extreme amount or quite a lot of pressure on their business in the next 12 months, three issues emerged as the top business pressures: cost of utilities, late payments from customers and fuel prices. (Cost of utilities was a new issue this wave). Overall, operators reported a higher level of pressure this wave, particularly in the following areas:
• Interest rates (up from 17% last wave to 27% this wave)
• Fuel prices (up from 23% to 31%)
• Late payments from customers (up from 26% to 31%)
• Cost of online technologies (up from 16% to 21%)
• Access to finance/funding/overdraft (up from 15% to 20%)
• Upgrading IT software, systems and processes (up from 13% to 18%)
• Exchange rates (up from 12% to 17%)
• Price margins and profitability (up from 23% to 27%)
• Upgrading hardware or other equipment (up from 15% to 19%)
Key differences for the major pressures are detailed below.
Cost of utilities Cost of utilities was a greater pressure for:
• Operators who reported a revenue fall in the previous 12 months (46%)
• Agribusinesses (46%) and retail and hospitality businesses (40%)
• South Australian operators (44%)
• Operators with a social media site (41%) or website (36%)
• Baby Boomers (36%)
• Cloud computing users (34%)
Late payments from customers Late payments from customers was a greater pressure for:
• Operators with a social media site (43%) • Construction and trades businesses (43%) • Operators who reported a revenue fall in the previous 12 months (39%) • Cloud computing users (35%)
18%
14%
16%
21%
19%
22%
24%
21%
28%
30%
29%
32%
24%
22%
14%
11%
13%
14%
16%
19%
19%
15%
21%
22%
23%
24%
23%
17%
15%
13%
12%
18%
16%
17%
19%
23%
23%
26%
25%
24%
25%
19%
12%
13%
15%
15%
16%
20%
20%
17%
23%
26%
25%
27%
23%
26%
17%
18%
19%
20%
21%
23%
23%
27%
27%
27%
28%
28%
31%
31%
31%
0% 10% 20% 30% 40%
Exchange rates
Upgrading IT software, systems or processes
Upgrading hardware or other equipment
Access to finance/funding/overdraft
Cost of online technologies
Retain existing customers
Time spent meeting tax obligations
Interest rates
Profitability & price margins
Cashflow
Competitive activity
Attract new customers
Fuel prices
Late payments from customers (wascustomer payment timing)
Cost of utilities
Pressure Points (% extreme/lot)
May 17 Nov 16 Apr 16 Oct 15 Feb 15
Business Monitor
MYOB Business Monitor May 2017 Page 9 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Fuel prices Fuel prices were a greater pressure for:
• Transport, postal & warehousing businesses (62%) • Start-ups (44%) • Operators who reported a revenue fall in the previous 12 months
(37%)
Attracting new customers Attracting new customers was a greater pressure for:
• Operators with a social media site (46%) or website (41%)
• Operators who reported a revenue fall in the previous 12 months (34%)
• Gen X operators (33%)
• Users of cloud computing (32%)
Competitive activity Competitive activity was a greater pressure for:
• Operators with a social media site (43%) or website (42%)
• Operators who reported a revenue fall in the previous 12 months (39%)
• Users of cloud computing (34%)
Cash flow Cash flow was a greater pressure for:
• Operators who reported a revenue fall in the previous 12 months (41%)
• Construction and trades businesses (33%) • Micro businesses (33%) • Operators with a social media site (37%) or website (35%) • Users of cloud computing (30%)
Price margins and/or profitability Price margins and/or profitability were a greater pressure for:
• Operators who reported a revenue fall in the previous 12 months (40%)
• Operators with a website (37%) or social media site (36%)
• Victorian operators (33%)
• Users of cloud computing (31%)
Interest rates Interest rates were a greater pressure for:
• Operators who reported a revenue fall in the previous 12 months (37%)
• Businesses with a website or social media site (33% each)
• Users of cloud computing (31%)
Time spent meeting your tax compliance obligations Time spent meeting tax obligations was a greater pressure for:
• Businesses with a social media site (33%) or a website (32%)
• Operators who reported a revenue fall in the previous 12 months (31%)
• Users of cloud computing (25%)
Retaining existing customers Retaining existing customers was a greater pressure for:
• Operators who reported a revenue fall in the previous 12 months (34%)
• Businesses with a social media site (32%)
• Users of cloud computing (25%)
Pressure points by industry are shown in the table on the following page.
Business Monitor
MYOB Business Monitor May 2017 Page 10 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Pressure points by industry
Agribusiness
Business, prof.
& property
services
Construction &
trades
Finance &
insurance
Manufacturing
& wholesale
Retail &
hospitality
Transport, postal &
warehousing
Cost of utilities such as electricity, gas & water
46% 29% 30% 17% 33% 40% 34%
Late payments from customers
35% 33% 43% 17% 39% 19% 12%
Fuel prices 44% 28% 33% 13% 30% 24% 62%
Attracting new customers 24% 24% 28% 41% 36% 31% 20%
Competitive activity 26% 26% 32% 26% 32% 29% 28%
Cash flow 29% 26% 33% 15% 30% 27% 13%
Price margins & profitability
28% 27% 30% 22% 33% 27% 26%
Interest rates 33% 23% 28% 35% 31% 26% 23%
Time spent meeting your tax obligations 29% 22% 29% 20% 23% 20% 23%
Retaining existing customers
10% 25% 21% 26% 29% 27% 23%
Online technology costs 17% 24% 15% 13% 33% 24% 13%
Access to finance/ funding/overdraft
31% 15% 23% 13% 22% 20% 25%
Updating hardware or other equipment
20% 19% 18% 17% 17% 20% 20%
Updating IT software, systems or processes
22% 18% 15% 15% 22% 17% 15%
Exchange rates 29% 18% 14% 11% 27% 17% 9%
Green = Significantly higher than total Red = Significantly lower than total
Business Monitor
MYOB Business Monitor May 2017 Page 11 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
ONLINE ACTIVITY & THE DIGITAL ECONOMY
One third of operators using online accounting and bookkeeping solutions While almost two-thirds of operators (65%) were using email and 61% were using online banking, one-third (33%) were using an online solution for their accounting and bookkeeping. A further 31% said they had a business website, while 27% of operators were accepting instant payments. Usage of email and online banking was lower this wave, but the use of ERP increased. The table on the following page details the usage of these online tools by industry. Key differences were as follows:
• Retail and hospitality operators were much more likely to be accepting instant payments (41%), connecting with customers using social media (38%), having a business social media site (31%) and staff rostering and work allocation (21%).
• Manufacturing and wholesale operators were more likely to have a business website (44%), be using an online sales platform (28%) and have an online ERP system (15%).
• Agribusinesses were also more likely to be using an online ERP system (17%).
• Finance and insurance operators were more likely to be using an online accounting system (49%).
Online activities Nov 16 May 17
E-mail 71% 65%
Use online banking 66% 61%
Accounting / Bookkeeping 32% 33%
Business website n/a 31%
Accepting instant payments eg (EFTPOS, ApplePay, PayPal, a shopping cart or mobile app etc)
28% 27%
Document sharing e.g. Dropbox, Google Drive 27% 24%
Connect with customers using social media 24% 22%
Business social media site n/a 22%
Saving file backups to the cloud 21% 20%
Payroll (employee payments, leave entitlements, PAYE etc.) 20% 20%
Customer Relationship Management (sales, marketing, support and feedback etc.) 18% 17%
External communications (online tools for conference calls etc.) e.g. WebEx, Go To Meeting, Skype
15% 15%
Modify your website to improve online search results or purchase online advertising or key words (SEO and SEM)
14% 12%
Sales platform 13% 12%
Staff rostering and work allocation 9% 10%
Internal communication (online tools for employees to communicate e.g. Yammer, Lync, Campfire, Hipchat)
8% 9%
Enterprise Resource Planning (tracking business resources such as cash, materials, production capacity etc.)
5% 8%
Have internet access but do not do any / not interested in any of above activities 8% 8%
Significant increase since last wave
Significant decrease since last wave
MYOB Business Monitor May 2017 Page 12 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Green = Significantly higher than total Red = Significantly lower than total
Tools by industry type
Agribusiness
Business, prof.
& property
services
Construction
& trades
Finance &
insurance
Manufacturing
& wholesale
Retail &
hospitality
Transport,
postal &
warehousing
E-mail 64% 61% 67% 74% 60% 66% 54%
Use online banking 71% 59% 64% 67% 52% 65% 47%
Accounting / Bookkeeping 31% 33% 33% 49% 31% 31% 15%
Business Website 29% 28% 26% 44% 44% 38% 11%
Accepting instant payments eg EFTPOS, PayPal, ApplePay
15% 21% 25% 30% 32% 41% 22%
Document sharing e.g. Dropbox, Google Drive 20% 26% 21% 33% 33% 22% 4%
Connect with customers using social media 18% 15% 20% 22% 27% 38% 17%
Business social media site e.g. Facebook, Twitter, Instagram
22% 17% 19% 18% 26% 31% 17%
Saving file backups to the cloud 24% 18% 17% 29% 21% 17% 9%
Payroll (employee payments, leave entitlements, PAYE etc.)
15% 19% 20% 13% 28% 22% 17%
Customer Relationship Management (sales, marketing, support and feedback etc.)
18% 15% 14% 20% 23% 18% 15%
External communications (online tools for conference calls etc.)
9% 16% 11% 21% 18% 12% 11%
Sales platform 11% 10% 5% 10% 28% 21% 11%
Modify your website to improve online search results or purchase online advertising or key words (SEO and SEM)
9% 10% 9% 17% 13% 16% 6%
Staff rostering and work allocation 9% 9% 7% 4% 10% 15% 14%
Internal communication (online tools for employees to communicate)
7% 10% 5% 17% 10% 9% 10%
Enterprise Resource Planning (tracking business resources)
17% 7% 5% 13% 15% 1% 7%
Have internet access but do not do any / not interested in any of above activities
8% 8% 9% 4% 9% 5% 13%
MYOB Business Monitor May 2017 Page 13 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Some of the other key differences noted are detailed below:
• Start-ups were more likely to be using external communications tools (22%), while established businesses were more likely to have Internet access but not be interested in any of the online tools (14%)
• Gen Y operators were much less likely to use email (54%) and online banking (48%) compared to Baby Boomers (73% and 71% respectively) and Traditionalists (87% and 78% respectively).
• Gen Y and Gen X operators were also more likely to have a business social media site (27% each)
• Females were more likely to use online accounting software (38%), have a business social media site (30%), online payroll (24%) and use online external communications tools (21%).
• Sole operators were much less likely to use a number of online tools including having a business website (26% compared to 37% of micro businesses, 45% of small businesses and 56% of medium businesses), connect with customers using social media (19% compared to 29% of micro businesses), have online payroll (13% compared to 27% of microbusinesses, 37% of small business and 41% of medium businesses) and use online CRM systems (14%). They were also, however, much more likely to use online external communications systems (18%).
In terms of social media, key differences by operator age and size of business are shown below.
Total Gen Y Gen X Baby Boomers
Traditionalists Sole operators
Micro Small Medium
Have business website 31% 32% 32% 30% 34% 26% 37% 45% 56%
Have business social media site 22% 27% 27% 15% 7% 20% 27% 21% 20%
Connect with customers using social media
22% 23% 26% 20% 10% 19% 29% 22% 25%
Green = Significantly higher than total Red = Significantly lower than total
MYOB Business Monitor May 2017 Page 14 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Operators with an online presence were asked which of a number of business changes had occurred as a result of having an online presence. As can be seen in the table below, having a business website was perceived to have resulted in more customer leads and enquiries (50%) and enabled a more professional brand image (48%). Having a social media site also resulted in more leads and enquiries (54%) and also allowed more interactions with customers (54%). A social media site also assisted in making it easier for customers to do business (50%).
Green = Significantly better than website/social media site Red = Significantly lower than website/social media site
Significant increase since last wave Significant decrease since last wave
While there have been a number of increases in terms of benefits of a website and social media site, the basis of those answering the question also changed, and hence results need to be treated with caution. In terms of having a business website, maturing businesses were much more likely to state that the website had provided them with more customer enquiries and leads in general (74%), while retail businesses were more likely to have seen benefit in being able to sell online (64%). Exporters and importers were more likely to nominate being able to compete internationally (38% and 28% respectively). In terms of having a social media site, Gen X operators were more likely to have seen benefit in increased interactions with customers (67%), while retail and hospitality businesses felt a social media site had increased their appeal to younger customers (60%).
Impact of online presence Result of having a business website Result of having a social media site
April 2016
(n=459) Nov 2016 (n=496)
May 2017 (n=321)
April 2016 (n=329)
Nov 2016 (n=331)
May 2017 (n=234)
Generated more customer enquiries or leads in general 45% 46% 50% 40% 43% 54%
Enabled your business to have a more professional brand image
41% 44% 48% 30% 33% 39%
Allowed more interaction with customers 34% 35% 47% 45% 49% 54%
Made it easier for customers to do business with you 34% 40% 46% 33% 33% 50%
Enabled you to compete better with your competitors 27% 28% 39% 27% 31% 35%
Increased revenue or income in general 24% 28% 37% 28% 24% 33%
Allowed you to sell online to customers 20% 23% 32% 20% 22% 28%
Enabled access to more markets 24% 26% 31% 27% 26% 31%
Increased your appeal to younger customers 17% 23% 24% 25% 33% 35%
Increased your appeal to younger employees 10% 13% 17% 19% 21% 21%
Enabled you to compete internationally/opened your market to international customers
16% 16% 16% 17% 15% 16%
Has not benefitted my business 9% 10% 7% 11% 12% 6%
MYOB Business Monitor May 2017 Page 15 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Pace of technology perceived as about right for
Australian operators
Three in five operators (59%) found the pace of technology innovation to be ‘about right’, while the proportion stating it was too slow increased this wave from 16% to 20%. Operators with a business social media site (27%) or a business website (26%) were more likely to be finding the pace of technology too slow.
Online security concerns increased this wave
Just under a quarter (24%) of operators had no online security issues compared to 29% in the previous wave. Losing access to their data emerged as the biggest security threat for operators this wave after several ransomware attacks received recent coverage (increasing from 35% to 42% this wave). Hackers gaining access to their data (39%) and losing control of their data (36%) were also nominated as key security concerns.
Online security concerns Oct 2015 (n=1024)
Apr 2016 (n=1008)
Nov 2016 (n=1003)
May 2017 (n=1009)
Losing access to your data 29% 38% 35% 42%
Hackers gaining access to your business data 34% 42% 39% 39%
Losing control of your data 25% 33% 30% 36%
Competitor access to your business data 13% 15% 14% 20%
Access to your data by local government 13% 15% 14% 17%
Access to your data by foreign governments 12% 14% 11% 14%
Do not have any concerns about online security 33% 23% 29% 24%
Don’t know 6% 7% 6% 5%
Significant increase since last wave Significant decrease since last wave
20% 17% 20% 17%
57% 57% 60% 59%
19% 24% 16% 20%4% 3% 3% 4%
Oct 15 Apr 16 Nov 16 May 2017
Speed of Technology Change
Don’t know
Too slow – more investment is needed in this area
About right for my needs
Too fast – I struggle to keep up
MYOB Business Monitor May 2017 Page 16 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Operators more concerned about online security concerns included:
Finance and insurance businesses (only 2% stated they were not concerned about online security)
Franchisors (9%) and franchisees (11%)
Exporters (13%) and importers (14%)
Operators with a website (15%) or social media site (17%)
Gen Y operators (16%)
Users of cloud computing (18%)
New South Wales operators (19%)
Metropolitan based businesses (20%)
MYOB Business Monitor May 2017 Page 17 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Almost two-thirds of operators using some form of password security to make their businesses cyber-secure but only half
using up-to-date antivirus software
Almost two-thirds of operators were using some form of password protection for their devices to make their business cyber-secure. However, only 20% were using an advanced form of password protection like two-factor authentication. Over half (55%) had up-to-date anti-virus software, while 43% operated a firewall. Traditionalists (83%) and Baby Boomers (72%) were much more likely to have up-to-date anti-virus software (compared to 37% of Gen Y operators). And while Baby Boomers were more likely to have some form of password protection (70%), Gen Y operators were more likely to utilise advanced password security (27% compared to 16% of Baby Boomers). Operators with a business website or social media site were also more likely to be using cyber-security measures.
Satisfaction levels with Internet cost and speed remained
steady
Just under half the operators surveyed reported being satisfied with both Internet speed and cost (47% and 45% respectively), a similar proportion to last wave. Baby Boomers (33%) were more likely to be dissatisfied with the speed of their Internet, while establishing businesses (33%) were more likely to be dissatisfied with the cost of their Internet.
Steps taken to make business cyber-secure (n=1009)
Nett Requiring Passwords 65%
Requiring password security on all/most devices 51%
Requiring passwords that have caps, special characters and/or numbers on all/most devices
38%
Requiring advanced password security when logging onto business systems (like two factor authentication, SMS verification codes, security token password generators, etc)
20%
Up-to-date antivirus software 55%
Firewall 43%
Data backup solution 41%
Encryption of sensitive data 16%
Cyber security policies and/training for staff 11%
None of the above 7%
Don't know 5%
26%28% 24% 25%
29%27% 27%
48% 47% 49%
49%46% 46% 47%
26% 26% 23%21%
27% 25% 26%
44% 45%48%
52%
47%42%
45%
FEB-14 AUG-14 FEB 15 OCT 15 APR 16 NOV 16 MAY 17
Satisfaction with speed and cost of Internet
Dissatisfaction with speedSatisfaction with speedDissatisfaction with costSatisfaction with cost
MYOB Business Monitor May 2017 Page 18 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
SPECIAL TOPIC: INNOVATION AND TECHNOLOGY
Small and medium businesses the key instigator of innovation Operators were asked whether they had invested in any of a number of innovative activities over the last 12 months. As can be seen, small and medium businesses were much more likely to have been undertaking innovative practices over the last 12 months. The acquisition of computer hardware and software was the most frequently mentioned innovation at 32%, followed by the acquisition of machinery and equipment (27%). Gen Y operators, metropolitan based operators, those with a website or social media site, users of cloud computing, manufacturing and wholesale businesses, exporters and importers and franchisees and franchisors were all more likely to have invested in innovative activities over the last 12 months.
Cost to introduce innovation perceived as the biggest barrier, but significant generational differences evident
Over one in four (29%) operators nominated the cost of introducing innovation into a business as the biggest barrier to innovation. However, Government was also seen to be partly at fault with 26% of operators nominating Government regulations and 25% a lack of Government support as key barriers. Sixteen percent of operators did not feel their business required innovation, while 11% did not perceive that there were any barriers affecting their business when it came to innovation. The cost of innovation was more likely to be mentioned by operators with a website (42%) or social media site (41%), retail and hospitality businesses (38%), start-ups (37%), Gen Y operators (36%) and microbusinesses (34%). Gen Y operators were also more likely to mention a lack of skilled personnel (23%) and a lack of R&D funding (19%), while Gen X operators were more likely to mention a lack of time to innovate (27%). Traditionalists (30%) and Baby Boomers (26%) were more likely to say their business did not need to innovate or that there were no barriers to innovation (22% and 15% respectively).
Activities undertaken in last 12 months
Total (n=1015)
Sole operators
Micro Small Medium
Acquired computer hardware or software 32% 32% 30% 34% 36%
Acquired machinery and equipment 27% 24% 31% 25% 40%
Conducted employee training 21% 14% 25% 40% 59%
Launched a new product or service 17% 16% 19% 15% 26%
Implemented new business strategies or management techniques
15% 14% 16% 18% 26%
Made significant changes to marketing strategies
14% 13% 15% 17% 25%
Conducted market research 13% 14% 9% 21% 21%
Invested in design (e.g. industrial, graphic or fashion design)
11% 10% 13% 9% 37%
Conducted an organisational restructure 8% 8% 6% 15% 13%
Applied for government R&D funding 6% 6% 5% 8% 20%
None of the above 24% 25% 25% 15% 0%
Green = Significantly higher than total Red = Significantly lower than total
Barriers to innovation May 2017 (n=1009)
Cost to develop or introduce 29%
Too much Government regulation 26%
Lack of Government support 25%
Not enough time to innovate 22%
Shortage of skilled personnel 17%
Lack of R&D funding 13%
My business does not require innovation 16%
No barriers affect my business when it comes to innovation
11%
MYOB Business Monitor May 2017 Page 19 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Technology perceived to have a significant impact on the way businesses
operate over the next 10 years Forty percent of operators perceived that technology would have a significant impact in terms of changing the nature of their business or the way they do business. Operators with a business website (56%) or social media site (53%) and operators whose revenue had increased in the previous 12 months (51%) were more likely to consider that technology would have a significant impact.
Improvements in connectivity, cloud computing and the internet-of-things
perceived to be the key technologies that will impact businesses The technologies that would impact operators most were improved connectivity (38%), cloud computing (34%) and the internet of things (34%). Key differences were as follows:
• Improvements in connectivity were more likely to impact small business (51%)
• Gen Y operators were more likely to nominate big data (30%) and machine-to-machine learning (23%)
• Finance and insurance (51%) and business, professional and property services (44%) were more likely to nominate cloud computing
• Manufacturing businesses were more likely to nominate 3D printing (38%)
• Metropolitan based operators and operators with either a business website or social media site were more likely to nominate a range of technologies.
Key technologies that will impact the business May 2017 (n=783)
Improvements in connectivity 38%
Cloud computing 34%
The internet-of-things 34%
Automation and robotics 27%
3D printing 22%
Big data 22%
Machine-to-machine learning 18%
Don't know 14%
Significantly, 40%
Slightly, 38%
No change anticipated
, 17%
Don't know,
5%
Impact of technology over the next 10 years
MYOB Business Monitor May 2017 Page 20 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
SPECIAL TOPIC: IMPORTANCE OF UTILITIES TO THE BUSINESS
Telecommunications and power the most important utilities to operators Telecommunications was nominated by 70% of operators as being important to their business, while power was nominated by 59%. Gas was considered the least important utility, nominated by only 21% of operators as being an important utility for their business. Key differences were as follows:
Telecommunications
• Operators with a social media site or website (83% each)
• Users of cloud computing (75%)
Power
• Medium (85%), small (73%) and microbusinesses (66%)
• Operators with a website (70%) or social media site (69%)
• Importers (69%)
• Retail and hospitality businesses (68%)
• Female operators (64%)
• Users of cloud computing (63%)
Transportation
• Transport, postal and warehousing (77%), agribusinesses (70%) and construction and trades businesses (63%)
Water
• Agribusinesses (70%)
• Franchisors (61%)
• Rural based operators (51%)
• Start-ups (50%)
• Females (49%)
• Gen Y operators (48%)
Gas
• Franchisors (51%) and franchisees (39%)
• Importers (46%) and exporters (44%)
• Gen Y operators (39%)
• Manufacturing and wholesale (39%) and retail and hospitality businesses (38%)
• Victorian (32%) and metropolitan based operators (31%)
1%
5%
8%
13%
27%
4%
10%
13%
16%
23%
24%
25%
27%
29%
24%
42%
37%
31%
26%
19%
27%
21%
19%
14%
7%
1%
1%
1%
1%
Telecoms
Power
Transportation
Water
Gas
Importance of Utilities
Not at all important Not very important Somewhat important
Very important Extremely important Don't know
MYOB Business Monitor May 2017 Page 21 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
SPECIAL TOPIC: EMPLOYMENT
Almost three quarters of employing businesses experienced some pain points with regard to employing staff, particularly small
businesses
In terms of employing staff, three key pain points emerged for employing businesses:
• Dealing with payroll compliance
• Finding new staff
• Demand for flexible work hours The pressure of finding new staff continued to decline (although the decline this wave was not significant), as did the ability to dismiss employees (down from 25% last wave to 19% this wave). However, the demand for flexible work hours increased this wave (up from 16% to 26% this wave). Operators more likely to experience pain points employing staff included:
• Small businesses (only 13% stated they had no pain points in employing staff)
• Importers (13%)
• Gen Y operators (16%)
Pain points in employing staff Oct 2015
(n=483)
April 2016
(n=468)
Nov 2016
(n=480)
May 2017
(n=481)
Dealing with payroll compliance – e.g. student loans, parental leave, child support payments
21% 29% 29% 31%
The ability to find new staff 27% 39% 33% 28%
Demand for flexible working hours 17% 21% 16% 26%
The process of hiring new staff 19% 23% 21% 24%
End of year paperwork e.g. payment summaries 16% 27% 20% 23%
Ability to dismiss employees 19% 29% 25% 19%
Understanding health and safety compliance (employers’ responsibility etc.)
10% 18% 21% 19%
I do not have any pain points with regard to employing staff
35% 23% 26% 24%
Significant increase since last wave Significant decrease since last wave
MYOB Business Monitor May 2017 Page 22 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
SPECIAL TOPIC: BUSINESS ASPIRATIONS
Australian business owners started their business to control their own destiny
Australian business owners started their own business for three key reasons: control, flexibility and passion. Operators’ desire for a complete lifestyle change declined this wave, while the intention of making money from a hobby or interest increased. Key differences were as follows:
• Gen X business owners were more likely to mention they wanted to spend more time with their family (26%)
• Gen Y operators were more likely to mention being offered a partnership (14%) or having to run a family business (12%)
• Traditionalists and Baby Boomers were more likely to mention they had reached retirement age and wanted to keep working (35% and 15% respectively). Traditionalists were also more likely to mention wanting to control their own destiny (58%).
• Females were more likely to mention they wanted to spend more time with their family (24% compared to 17% of males).
• Small business owners were also more likely to have been offered a partnership opportunity (22%).
• Construction and trades owners were also more likely to want to control their own destiny (52%)
• Manufacturing and wholesale operators were more likely to be looking for more flexibility in what they did (48%).
• Retail and hospitality owners were more likely to mention making money from something they were passionate about (44%) and making money from a hobby or interest (37%).
• Agribusiness owners were more likely to nominate having to take over a family business (18%).
Reasons for starting the business Business owners
Oct 2015 (n=766)
Nov 2016 (n=809)
May 2017 (n=727)
I went into business to control my own destiny 39% 45% 41%
I needed flexibility in a role to do what I want, when I want 32% 32% 33%
I started my own business because I am passionate about what I do
29% 34% 32%
I wanted a total lifestyle change from what I was doing 27% 29% 23%
I thought that I could make money from a hobby or an interest 12% 13% 21%
I went into business so I can spend more time with my family 13% 17% 19%
I started it as an investment strategy to make more money for the future
11% 15% 15%
I had reached retirement age but wanted to continue working 6% 7% 9%
I was offered a partnership opportunity by someone else 7% 6% 8%
The business is our family business and I had to take it over 9% 6% 7%
Significant increase since last wave Significant decrease since last wave
MYOB Business Monitor May 2017 Page 23 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Australian business owners’ long-term goals for the business focused on flexibility rather than growth In terms of the long-term goals for their business, more than one quarter (27%) of business owners nominated flexibility, allowing them to make money but also spend time with the family and take holidays. Less than one in five (18%) nominated growth as their key goal, while 17% felt it was more about a passion for what they did. Key differences were as follows:
• Gen X business owners were more likely to mention making some money and giving themselves flexibility (35%), while Gen Y operators were more focussed on growing the business (24%).
• Traditionalists were more likely to mention working on something they were passionate about (30%), while Traditionalists (41%) and Baby Boomers (25%) were more likely to mention semi-retirement.
• Start-ups were more likely to mention wanting to grow the business (26%)
• Retail and hospitality business owners were more likely to mention making some money from what they were passionate about (28%) or building a successful business to sell (17%).
Around one-third of business owners felt that a guaranteed income from the Government would have assisted them when they started their business Reducing the stress of starting a business was perceived as the most significant benefit if Government provided a guaranteed income to assist them when they started their business, with 34% of business owners rating it as a significant assistance. For 30% of owners, it would also have assisted them in starting their business earlier, while 26% felt it would have encouraged them the take a greater risk to be more innovative. Gen X operators were more likely to comment that the Government assistance would have helped reduce their stress levels (40% rated this as significant), while establishing businesses were more likely to say the assistance would have helped them be more innovative earlier (33%).
Long term goals for the business Business owners
Oct 2015 (n=766)
Nov 2016 (n=809)
May 2017 (n=727)
I want to make some money and give myself flexibility at the same time, to spend time with the family, to take holidays etc
28% 26% 27%
I want to grow my business and make a good profit and income for myself
19% 19% 18%
I want to make money from what I love doing. It’s more about working on things I am passionate about
16% 16% 17%
I want to make some money, but it is more a semi-retirement 14% 15% 16%
I want to build a successful business that I can sell for a good profit
8% 7% 8%
I want it to be a family business I leave to my children 5% 5% 6%
I want to sell the business and do something else 4% 5% 4%
24%
21%
22%
43%
43%
49%
30%
34%
26%
3%
2%
3%
Encouraged you to start a businesssooner
Reduced your level of stress in the initialperiod of starting your business
Allowed you to take a greater risk initiallyto be more innovative
Assistance of a guaranteed income form the Government
NETT Not at all (0-3) NETT 4-7 NETT Significantly (8-10) Don't know
MYOB Business Monitor May 2017 Page 24 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
SPECIAL TOPIC: END OF FINANCIAL YEAR (EOFY) PREPARATION
Over half (56%) of operators started preparations before EOFY, while 36% started afterwards
Operators were asked when they started work on their end of financial year (EOFY) reporting. Work started on this important task anywhere from more than a month prior (29%) to more than two months after (10%), with 56% starting before the EOFY and 36% starting after (7% did not know when they started).
Established businesses (47%) and sole operators (39%) were more likely to start after the end of the financial year, while retail and hospitality (66%) and start-ups (65%) were more likely to start before then end of the financial year.
Over one third of operators working weekends to meet their EOFY obligations Over one-third of operators (37%) stated they had worked on weekends to meet their EOFY obligations (compared to 42% in the previous year) and a further 23% had worked past midnight. One third of operators (34%) did not think they had made any time sacrifices in terms of meeting their EOFY obligations. Traditionalists (60%) and Baby Boomers (48%) were more likely to state they had not made any time sacrifices (compared to 20% of Gen Y operators), as did established (54%) and maturing businesses (48%) and regional based operators (38%).
Two in five operators were planning to meet their EOFY themselves When asked in what ways they would meet their EOFY obligations this year, 41% stated they were planning to do it themselves (up from 36% the same time last year). While 56% said they were using an accountant, this proportion was significantly lower than the same time last year when 63% said they would be using an accountant. The proportion using a bookkeeper has remained relatively consistent at 20% (19% last year). Gen X and Baby Boomers were both more likely to use an accountant (61%) compared to only 44% of Gen Y operators. The latter were much more likely to use a bookkeeper (33%). Small businesses too were much more likely to use a bookkeeper (34%), particularly compared to sole operators (17%). Maturing (65%) and established businesses (63%) were much more likely to use an accountant, while establishing businesses were more likely to use a bookkeeper (27%). And in terms of trying to cut the time it takes to get the business ready for EOFY, 32% stated they would not be doing anything, while the main methodology used was to employ an accountant (31%) or bookkeeper (15%).
Time sacrifices to meet EOFY obligations
Jan 2015 (n=1023)
April 2016 (n=1008)
May 2017 (n=1009)
Worked weekends 37% 42% 37% Worked beyond midnight 22% 26% 23% Turned down an invitation to catch up with friends
17% 20% 20%
Missed an important family event 11% 13% 14% Been unable to take planned holidays 14% 12% 14% Hired additional staff 7% 8% 11% Hired a babysitter for a significant amount of time
5% 6% 8%
None of the above 40% 33% 34%
29%
19%
8%
8%
11%
7%
10%
7%
At least a month before EOFY
Between 1 - 4 weeks before EOFY
Within a week before EOFY
Within a week after EOFY
Within 1 - 4 weeks after EOFY
Within 1 - 2 months after EOFY
More than 2 months after EOFY
Don't know
EOFY preparation start time
MYOB Business Monitor May 2017 Page 25 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
SPECIAL TOPIC: PROMPT PAYMENT PROTOCOL
Almost one-third of operators impacted by slow payments from customers Almost one-third of operators (31%) stated they were either impacted a great deal (15%) or a lot (16%) by slow payments from customers. The impact of slow payments was felt most by the following:
• Construction and trades businesses (49% stated slow payments had a great deal or a lot of impact on their business)
• Operators who reported a revenue increase in the previous 12 months (41%)
• Importers (41%)
• Operators with a business website (39%) or social media site (38%)
• Gen X operators (36%)
Impact of slow payments was significant on operators’ stress and anxiety Over two in five operators impacted by slow payments (42%) felt that the situation had increased their levels of stress and anxiety. Over a third of operators (36%) also felt slow payments had impacted on their personal finances. Constructions and trades businesses more likely to consider the impact of slow payment to have greater ramifications across a range of issues.
Small businesses the biggest culprits of slow payments When asked who they described as the worst payers, small businesses were nominated by 21% of respondents, while 19% nominated big business. Government was nominated by only 11%. Baby Boomers, established businesses, and construction and trades businesses (26% each) and operators with a website (24%) were more likely to consider big business the slowest payers.
Impact of slow payments (n=787)
Your levels of stress and anxiety 42%
Personal finances 36%
Family / personal life 27%
Ability to meet your business' debts (power, rent etc.) 27%
Your mental health 24%
Your motivation to stay in business 21%
Ability to invest in your business 19%
Ability to start new projects 17%
Ability to pay staff 16%
Interfered with holidays / recreation activities 13%
Ability to retain staff 9%
Ability to hire staff 8%
A great deal, 15%
A lot, 16%
A moderate amount,
28%
A little, 18%
None at all, 19%
Don't know, 4%
Impact of slow payments on business
19%
12%
21%
11%
5%
14%
15%
3%
Big business
Medium business
Small business / sole traders
Government
Not for profits
No specific type of organisation
Only invoice consumers
Don't know
Slowest payers
MYOB Business Monitor May 2017 Page 26 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
Cashflow and lack of regard for the business’ invoice terms considered the main reasons for slow payment from customers When asked what they considered the main reasons for their customers slow payment, over a third of operators nominated their customers’ cashflow issues (38%) or the lack of regard their customers showed for their invoice and payment terms (34%). Construction and trades businesses were more likely to mention a lack of regard for their invoicing and payment processes (50%).
The result often meant a loss of trust or a need for awkward and difficult conversations The result of a slow payment from a customer resulted in a loss of trust between them and the customer for 33% of operators. A further 30% commented that they were forced to have difficult or awkward conversations with customers. Almost two in five construction and trades businesses (39%) refused to work with the customers again, while 24% of start-ups stated that the contract had been terminated.
A prompt payment protocol was well supported Almost two-thirds of all operators (63%) supported a prompt payment
protocol encouraging businesses and Government to pay promptly.
Reasons for slow payments from customers (n=787)
Cashflow issues 38%
Lack of regard for your invoice terms and payment processes 34%
The customers don't think we will take action against them 27%
There are no laws or regulations to prevent late payments or long payment terms
26%
The customers' payment processes are not very efficient, so invoices can get overlooked
22%
Approvals sometimes get held up by a person needing to approve the invoice
21%
The customers dictate long payment terms which have to be accepted if you want to do business
19%
If we complain, the customer will go to a competitor 19%
Customers disputing invoices 14%
We don't provide discounts if the customer pays on time 12%
Impact on Customer Relationship (n=787)
The loss of trust between us and the customer 33%
We were forced to have difficult/awkward conversations with those customers
30%
We refused to work with the customer again 27%
The contract was terminated 16%
The customer suggested we were pushy/difficult for chasing payment
15%
There was no impact because we couldn't give up the customer, as their revenue was too important, even though they delayed payment
12%
There was no impact at all on the relationship 14%
7% 3% 21% 37% 27% 5%
Support for prompt payment regulation
Strongly disagree Disagree
Neither agree nor disagree Agree
Strongly agree Don't know
MYOB Business Monitor May 2017 Page 27 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
GOVERNMENT
Level of satisfaction with Federal Government’s support of small business increased The level of satisfaction with the Federal Government’s support of small business improved this wave from 22% to 28% this wave. Dissatisfaction levels remained statistically unchanged from last wave (30% compared to 33%), while 40% of operators stated they were neither satisfied nor dissatisfied. Higher dissatisfaction was noted by rural operators (40% compared to 25% of metropolitan based operators), established businesses (40%), and Baby Boomers (39% compared to 22% of Gen Y operators).
Satisfaction levels with State Government also increased Satisfaction with the level of support from State Government also increased this wave from 21% last wave to 27% this wave. Correspondingly, dissatisfaction levels also decreased from 40% to 34%. Dissatisfaction levels were highest amongst rural operators (46% compared to 30% of metropolitan based operators), established businesses (45%), micro businesses (44% compared to 31% of sole operators), Baby Boomers (43% compared to 25% of Gen Y operators) and males (37%).
39%
31%38%
48%56%
52%57% 54%
49%
32%37%
33%26%
32% 33%30%
21%29%
21%14% 14% 11%
17% 14% 16%24% 23%
27% 30%
20% 22% 28%
JUL 09 NOV 09MAR 10 OCT 10 SEPT 11 FEB 12 MAY 12 FEB 13 AUG 13 FEB 14 AUG 14 FEB 15 OCT 15 APR 16 NOV 16MAY 17
Perceptions of Federal Government support of small business
Total dissatisfied Total satisfied
19% 17%12%
18% 14% 15% 16% 17%25% 23% 27% 29% 28%
23% 21%27%
43% 46%53%
46% 50% 51% 49%43% 40% 36% 33% 34% 30%
38% 40%34%
NOV 09 MAR 10 OCT 10 MAR 11SEPT 11 FEB 12 MAY 12 FEB 13 AUG 13 FEB 14 AUG 14 FEB 15 OCT 15 APR 16 NOV 16 MAY 17
Perceptions of State Government support for SMEs
Total satisfied Total dissatisfied
MYOB Business Monitor May 2017 Page 28 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
The instant tax write off, simplification of BAS and reducing the company tax rate to 25% were viewed favourably by operators
Keeping the instant tax write-off of assets under $20k, simplifying the GST reporting process and reducing the company tax rate to 25% for businesses under $10m revenue gained the most support from operators (64% of operators supported each of these issues). At the other end of the scale, the removal of the threshold at which GST was collected on goods purchased from abroad was more likely to cause operators to vote against the party proposing it (24%), as was the introduction of paid parental leave for all businesses with a revenue over $5m (23%). Gen Y operators were less likely to vote for several of the nominated policies, but were much more supportive of the introduction of a paid parental leave levy on all businesses over $5m revenue (45%).
There were also some notable differences by business type:
• Construction and trades businesses were much more likely to support assigning a proportion of Government contracts to small business (70%) and increasing Federal Government funding for skills, training and apprenticeship programs (68%)
• Retail and hospitality businesses were more supportive of removing the threshold at which GST is collected on goods purchased from abroad (48%)
• Manufacturing and wholesale businesses were more supportive of introducing a paid parental leave levy (46%)
• Transport, postal and warehousing businesses were more supportive of more Federal Government funding in transport infrastructure (70%)
Policies or initiatives that business operators would vote for/against For Against
Keeping the $20,000 instant asset tax write-off for businesses under $2m revenue
64% 9%
Policies that significantly simplify the GST/BAS reporting process 64% 9%
Reducing the company tax rate from 30% to 25% for businesses under $10m revenue
64% 13%
Assigning a proportion of Government procurement contracts to small businesses
60% 10%
Increased Federal Government funding for skills, training and apprenticeship programs
58% 9%
The establishment of an incentive bonus for businesses employing people over age 50
56% 11%
More Federal Government investment in transport infrastructure in our major States and cities
55% 10%
Offering a wage subsidy for employing young Australians 55% 11%
Increased Government funding for innovation, research and development by Australian businesses
53% 10%
Exempting FBT on the purchase of work-related portable electronic devices 49% 12%
Remove the threshold at which GST is collected on goods purchased from abroad
38% 24%
Introducing a paid parental leave levy for all businesses with revenue over $5m 33% 23%
MYOB Business Monitor May 2017 Page 29 © 2017 MYOB Limited, all rights reserved. Copyright strictly enforced.
About the study
The MYOB Business Monitor researches business performance and attitudes regarding areas such as profitability, cash flow, pipeline work, technology usage and the government. This report presents the summary findings for key indicators from the MYOB Business Monitor comprising a national sample of 1,009 business owners, managers and directors (operators), conducted from May 1 - 18, 2017. The businesses participating in the online survey were both non-employing and employing businesses. All data has been weighted by industry type, location and number of employees, which are in line with the Australian Bureau of Statistics (ABS - Counts of Australian businesses, including entries & exits - 8165.0). This research report was prepared by Gundabluey Research and fieldwork was completed by Colmar Brunton (a Millward Brown Company) for Sarah Beyrath, Public Relations & Corporate Affairs Manager – Australia, MYOB Australia ([email protected] | http://myob.com.au
Industry Weighting No.
Agribusiness*1 9% 46
Construction & trades 17% 168
Finance & insurance*1 9% 46
Manufacturing & wholesale 8% 72
Professional & business services 27% 279
Retail & hospitality 11% 123
Transport & warehousing*1 6% 53
Other industries**2 (incl. in total results) 14% 222
TOTAL 100% 1009
Location Weighting No.
New South Wales 33% 320
Victoria 26% 266
Queensland 20% 202
South Australia 7% 76
Western Australia 10% 107
Other 4% 38
TOTAL 100% 1009
1 Caveat: There is high margin of error of +/-15% @ 50% on these small bases 2 Other Industries, which have been combined to minimise their margin of error, include these sectors: Communication Services; Cultural & Recreational Services; Education; Electricity, Gas & Water Supply Services; Health & Community Services; Mining; and Personal & Other Services
The generations were categorised as follows:
• Generation Y: 18 – 34 years of age
• Generation X: 35 – 49 years of age
• Baby boomers: 50 – 69 years of age
• Traditionalists: 70+ years of age
Length of time in business was categorised as per the following:
• Start up: in business fewer than 2 years
• Establishing: 2 to 5 years
• Maturing: 5 to 10 years
• Established: 10+ years
Number of employees/business type Weighting No.
0 employees/sole traders 61% 611
1-5 employees/micro business 28% 279
6-19 employees/small business 9% 95
20-199 employees/medium business*2 2% 24
TOTAL 100% 1009