How does the global economy impact SMEs?

How does the global economy impact SMEs?

Are you concerned about how global factors may impact your operations? A new survey asked SME owners just this, and the results are somewhat surprising.

Momentum Intelligence recently revealed the results of its inaugural quarterly SMB Insights Survey, conducted in the first quarter of the 2017 financial year.

Given the amount of coverage in the mainstream media about global events, such as American and European politics, low global growth rates, Brexit, currency markets and trade figures, it would be understandable for Aussie business owners to get swept up in the commotion and begin to worry about what, if any, impact these factors may have on their own operations.

Yet of the more than 1,000 people surveyed, nearly two-thirds (62 per cent) said they thought the global economy would have a neutral impact on their business in the final six months of 2016.

Some one in four respondents reported a negative impact as a result of global factors, while 13 per cent saw the glass half full.The global in front of a graph on paper

“This is a survey that took place… in the lead-up to the US elections,” says head of research at Momentum Intelligence, Andy Scott.

“We've got Trump in charge now. If you're looking at global markets right now, they've all rallied very much behind Trump's enthusiasm, Trump's focus for making America great again and how that is going to influence global economy.”

According to Andy’s research, the regions which Aussie business owners look at most closely are, unsurprisingly, Asia (31.1 per cent) followed by North America (25.1 per cent).

“Then of course, I suppose in the indomitable Aussie spirit, the third highest answer is ‘none’. As a citizen of this great shore, Aussies back themselves to do well in most situations regardless of who they're up against,” he says.

Overall, the research suggests that the majority of business owners are staying “alert but not alarmed” to global factors, Andy says, and rightfully focusing most of their attention on the factors they can change at a local level rather than the ones out of their control.

Hear more from Andy, including how business owners feel about their profitability and the expectations of employees on remuneration and job prospects, on the My Business Podcast!

How does the global economy impact SMEs?
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